What is an EB-5 Visa? US Immigration Investor Program

What is US Investment Immigration or EB-5 Visa?

Employment-Based Fifth Category Visa or EB5 Visa was introduced by the United States Congress in 1990. The EB5 Visa category was formed to grant U.S. immigration benefits to foreign investors seeking U.S. permanent residence by making an investment in the United States. The EB5 visa program was formed with the aim of attracting foreign direct investment and creating American jobs. 10,000 immigrant visas are allocated annually for foreign investors and their immediate family members. EB-5 Visa is a direct and predictable path to obtaining US Permanent Residence (Green Card) and US citizenship in the future.

There are two ways of making an investment: Direct investment and through a Regional Center. Regional Centers are entities designated by United States Citizenship and Immigration Services or USCIS to attract foreign investment under the EB5 visa program for EB5 projects in the United States. More than 90% of the applications filed under the EB5 Visa Program are through the Regional Center route.

To qualify for an EB5 Visa, a foreign investor needs to invest at least $800,000 in a Targeted Employment Area (TEA) or $1,050,000 in a non-TEA. The Federal Government of the United States has the power to designate a census tract as a TEA subject to meeting certain conditions. The EB5 investment should be well documented and be sourced from lawful sources. Further, the EB5 investment should result in the creation of 10 new full-time American jobs. It is important to note that if an investor invests in an existing business, their investment should result in an additional 10 jobs in the business operation. However, if the EB5 investor invests in a distressed business, then the EB5 investment should result in the preservation of 10 jobs.

What is the process and timeline for obtaining an EB-5 Visa?

The EB-5 Visa process is a multi-stage process that starts with making an investment and filing an Application for a Conditional Green Card with USCIS. If the application is successful, USCIS issues an approval that results in issuing a Conditional Green Card through a Consular Interview or Adjustment of Status to the EB5 investors and their qualifying dependents. Post receipt of a Conditional Green Card, 1 year and 9 months later and before the expiration of 2 years, EB5 investors are required to file an Application for Removal of Conditions. Prior to the passing of the EB-5 Reform and Integrity Act on March 15, 2022 EB-5 investors could only be repaid upon the expiration of 2 years from the receipt of the Conditional Green Card; however, in October 2023, USCIS notified that their interpretation of the sustainment period is 2 years from the date of deployment of funds in the Job Creating Entity or the Project. Post the notification, most projects are structured to repay capital within 5 years. If the USCIS determines that the EB5 investment has resulted in the creation of 10 new American jobs per investor, an Unconditional Green Card is issued to the EB5 investors and their qualifying dependents. U.S. Immigration Laws define qualifying dependents as spouse and unmarried children under 21. Learn more details about the EB-5 process and timelines here.

What are the advantages of the EB-5 Visa for H1B Visa Professionals and International Students?

The EB-5 Visa program presents a range of enticing advantages for foreign investors. Firstly, it provides investors with unrestricted employment opportunities in the United States, offering the freedom to pursue careers in various fields. Furthermore, it stands out as one of the fastest pathways to obtaining a U.S. Green Card, granting investors the security and benefits of permanent residency.

The EB5 program opens doors to world-class education institutions with reduced tuition fees while providing free K-12 education for younger children. By choosing the EB-5 route, investors can bypass the H1B Visa lottery, eliminating the uncertainty associated with it, and enjoy the independence of not needing employment sponsorship. This means they can live and work in the United States while waiting for their Green Card approval, enhancing their flexibility and opportunities.

In addition, EB-5 Visa holders benefit from visa-free access to neighboring countries such as Canada and Mexico, simplifying international travel. Lastly, the program’s structured investment model, involving secured debt with a target repayment period of 5 years, ensures a transparent and potentially profitable investment journey. In summary, the EB-5 Visa program offers a straightforward and accessible path to realizing the American dream for investors seeking opportunities in the United States.

You can learn more about the advantages of the EB-5 Visa for H1B Visa holders here and about opportunities for the EB-5 Visa for international students here.

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