Guide to EB-5 Visa
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What is the EB-5 Immigrant Visa?
The EB-5 visa provides qualified foreign investors with the opportunity to earn a conditional, or temporary, two-year green card in return for investing $800,000 (based on current USCIS guidance) in projects located in high unemployment areas, or $1,050,000 (based on current USCIS guidance) outside those areas, that create at least ten permanent full-time jobs for U.S. workers.
The EB-5 Program is administered by U.S. Citizenship and Immigration Services (“USCIS”).
The EB-5 Program Origin and Purpose
Congress created the employment-based fifth preference immigrant visa category (“EB-5”) in 1990 to benefit the U.S. economy by attracting investments from high-net-worth foreign nationals in return for lawful permanent resident status, commonly referred to as “green card”. Congress intended to create and sustain American jobs by infusing foreign investment into the U.S. economy.
The Immigration and Nationality Act (INA) sets aside 10,000 visas each fiscal year (October 1 to September 30) for immigrant investors along with their spouses and unmarried children under the age of 21. USCIS has allocated a quota of 700 green cards per country each fiscal year.
Pursuant to the EB-5 Program, foreign nationals may pool their investments in economic entities (public or private) known as “Regional Centers” and claim credit for direct or indirect/induced job creation. Foreign nationals and their qualifying dependents initially receive conditional permanent resident status for a 2-year period, and if the investment and job creation requirements are thereafter satisfied, the conditions are removed, and unconditional lawful permanent resident status is granted.
The minimum investment requirement under the EB-5 Program is $800,000 (based on current USCIS guidance) in a high unemployment areas and $1,050,000 (based on current USCIS guidance) outside those areas. Investments under the EB-5 Program must be at-risk, i.e. while the investments can be secured by the assets of the project, the return of investment cannot be guaranteed.
EB-5 investors and their families receive permanent green cards:
High Unemployment Areas
EB-5 projects located in high unemployment areas require a lower investment amount – $800,000 (based on current USCIS guidance).
EB-5 Program Overview
How many EB-5 Visas are available annually?
Up to 10,000 visas are allocated each fiscal year to investors in the EB-5 Program.
What is the minimum capital investment amount within a high unemployment area?
The minimum capital investment amount within a high unemployment area is $800,000 (based on current USCIS guidance).
What is the minimum capital investment amount outside a high unemployment area?
The minimum capital investment amount outside a high unemployment is $1,050,000 (based on current USCIS guidance).
What is the minimum job creation requirement per EB-5 investor?
The minimum requirement is to create or preserve 10 full-time jobs in the United States.
Who receives lawful permanent residency through the EB-5 Program?
• The investor
• Investor’s spouse
• Any unmarried children under the age of 21
• Any unmarried adopted children under the age of 21
What Are the Advantages of the EB-5 Visa?
For many investors, EB-5 Visa is the easiest option to get green cards for the entire family:
• EB-5 Visa does not require an offer of employment or family sponsorship. An EB-5 investor can self-petition for an EB-5 Visa.
• For nationals of many countries, the EB-5 Visa is one of the fastest ways to become a lawful permanent resident of the United States.
• There are no educational, business background, or language requirements for EB-5 investors or their qualifying dependents.
Benefits of Lawful Permanent Residency
EB-5 investors who become U.S. lawful permanent residents (green card holders) and their qualifying dependents:
• Are eligible to receive free public education from kindergarten to high school.
• May be eligible to pay lower college tuition fees than international students.
• Are eligible to receive federal loans for education, which are not available to foreign students. The interest on federal student loans is usually lower than on loans by private banks.
• Are eligible to receive social security benefits upon retiring (subject to fulfilling certain conditions).
• Are eligible to sponsor other relatives for permanent residence (including upon obtaining U.S. citizenship).
• May visit Canada and Mexico without a visa or consular stamp.
Better employment and business opportunities:
• Upon becoming a lawful permanent resident of the United States, EB-5 investors and qualifying dependents have access to the U.S. job market just like any other U.S. national or permanent resident.
• EB-5 investors with a green card enjoy more employment opportunities than foreign nationals and their dependents who rely on work authorization. Additionally, internship opportunities for students with EB-5 visas are often more readily available than for international students.
• EB-5 investors with a green card may have more leverage in salary negotiations as they are not dependent on their employers to live and work in the United States.
• Unlike employees with temporary work visas (such as H-1B), EB-5 investors can own and operate their startups and manage employees.
• EB-5 investors with a green card can own a franchise business. Many companies do not offer franchises to foreign nationals.
They can live and work anywhere in the United States without any restrictions.
Who is Eligible to Invest in the EB-5 Program?
The EB-5 Program is suitable for everyone, as there are no age, language, education, or nationality restrictions.
However, there are a few conditions that each investor and his/her family members must satisfy:
• EB-5 investors must satisfy the eligibility requirements of the EB-5 Program, including demonstrating the lawful source(s) of the funds that are used for the EB-5 investment.
• EB-5 investors need to be able to pass a consular screening interview and criminal background and medical checks.
The EB-5 Program Application Process:
An EB-5 investor can apply for an EB-5 visa in two ways:
1) Investing in a direct EB-5 project:
Starting his/her own business and hiring at least 10 full-time U.S., work-authorized employees; or
2) Investing in a Regional Center-sponsored EB-5 project:
A Regional Center is an economic unit in the United States that is involved with promoting economic growth. Regional Centers are designated by USCIS for participation in the EB-5 Program. Regional Centers can offer investors already defined investment opportunities, thereby reducing the investors’ responsibility to identify acceptable investment vehicles. The minimum investment and job creation requirements are the same for both investment options. Overall, more than 90% of the EB-5 investors choose to invest with a Regional Center.
The EB-5 Visa application consists of the following steps:
1) Review the investor eligibility requirements under the EB-5 Program;
2) Select an EB-5 Regional Center-sponsored project and retain an experienced EB-5 immigration attorney;
3) Remit applicable funds, either $800,000 or $1,050,000 (based on current USCIS guidance) depending on the location of the project;
4) Submit Form I-526, Immigrant Petition by Alien Entrepreneur. Upon approval, prepare for adjustment of status if in the U.S. (or consular processing if abroad).
5) Consular interview & conditional green card
Post approval of the I-526 Petition, the EB-5 investor needs to apply for an EB-5 visa and attend a consular interview if he/she is outside the United States. Upon successfully appearing for the consular interview, the EB-5 investor and qualifying dependents will receive an initial 2-year conditional green card.
6) Removal of conditions & permanent green card
Between 21 and 24 months prior to the expiration of the conditional green card, an EB-5 investor must submit an I-829 Petition to remove conditions. At this stage, the investor needs to prove that the funds have been fully invested and sustained at-risk over conditional residence period and have resulted in a creation of at least 10 jobs for U.S. workers. If the investor satisfies these requirements, the conditions on the green card are removed and the EB-5 investor receives unconditional permanent residence (green card).
