EB-5 Visa Program Overview
UNITED STATES EB-5 VISA PROGRAM
Created in 1990 by the United States Congress and is regulated by the US Citizenship and Immigration Service (“USCIS”), EB-5 stands for “Employment-Based Immigration, 5th Preference”. Commonly referred to as an “immigrant investment program”. The program provides a foreign national immediate family with the opportunity to obtain Lawful Permanent Resident (“green card”) status by investing in a commercial enterprise that meets job creation criteria.
Minimum Investment of $800,000 into a Targeted Employment Area (TEA)
Investment amount must create at least 10 jobs
Investment Funds must come from a lawful and legitimate source
EB-5 Visa Program
EB-5 Benefits
For the investor, the EB-5 program provides a number of outstanding benefits:
Education
Easier access to the best schools in the US without restrictions faced by international students
Tuition savings
Access public K-12 education in the US for free, and enjoy greatly reduced in-State tuition for US State universities
Business
The opportunity to make an investment or start a business in the US with greater ease
Increased mobility
Visa free access to 176 countries around the world
Retirement
The option to permanently relocate to, or retire in, the United States at some point in the future
Family
The chance to move closer to family that previously immigrated to the United States
EB-5 Visa Program Overview
EB-5 Advantages
The EB-5 program is one of the most flexible immigration programs in the world:
Value and efficiency
Multiple family members can obtain citizenship with just one investment
Geographic flexibility
Investors may live and work anywhere in the United States
No “immigration prison”
Investors don’t need to stay in the U.S. for a fixed amount of time as long as they go at least once every 6 months
Financial savings
Under certain circumstances, children can attend United States universities at resident costs
Wider eligibility
No minimum requirements as to age, employment experience, or education
No reliance on third parties
No sponsorship requirements from an employer or family members
Minimal professional requirements
An EB-5 investment does not require active day-to-day management (regional center program only)
The Core Requirements
The EB-5 Program Requires Your $800,000 Create at Least 10 Jobs for US Workers
- Created in 1990 by the United States Congress and is regulated by the US Citizenship and Immigration Service (“USCIS”)
- EB-5 stands for “Employment-Based Immigration, 5th Preference”
- Commonly referred to as an “immigrant investment program”
- Provides a foreign national immediate family with the opportunity to obtain Lawful Permanent Resident (“green card”) status by investing in a commercial enterprise that meets job creation criteria
- A path to a green card (and the possibility of citizenship after 5 years)
- Primary return on investment is the green card
-
Regional Center Program: today, almost all EB-5 investments are through regional centers, which allows:
- Investors to participate in investment vehicles that limit the need for day-to-day management
- Investors to recognize the benefit of both “direct” and “indirect” job creation from their EB-5 investment -
Targeted Employment Area (“TEA”): the EB-5 investment is reduced from $1,050,000 to $800,000 for areas that either:
- Have unemployment rates that are 1.5x the national average; or
- Are rural (defined by USCIS as an area not within a metropolitan statistical area (MSA) or the outer boundary of any city or town having a population of 20,000 or more)
EB-5 Visa
Application Process
01
Investor Chooses Project
- Sign investment documents
02
Prepare I-526 Application
- Engage immigration attorney
- Prepare source of funds documents
- Prepare personal background documents
03
I-526E Approval Process
- Wire $800,000 investment and subscription fee to project escrow account
- Submit the I-526E application to USCIS
- USCIS will issue you a case number and an
adjudicator will be assigned to your case
- If you are in the US on another visa at the time of filing your I-526E, you may file for an adjustment of status that will grant you most benefits of having a green card in as little as a few months.
04
Wait for interview at US Consulate
- After the I-526E is approved, applicant waits for an interview at the US Consulate
- After passing the interview, the EB-5 visa will be issued and the applicant can travel to the US
- If applicant is already in the US through the adjustment of status detailed in step 3 above, they will complete this process in the US through USCIS.
05
Conditional Residence Period
- Upon entering the US on the EB-5 visa, the
applicant will receive a conditional US green card
- After 21 months, applicant may submit the I-829 application to USCIS for the permanent green card
06
I-829 Approval Process
- During the I-829 approval process, the USCIS
adjudicator will confirm that the at least 10 jobs were created by the applicant’s investment
- After approval of the I-829 application, applicant receives permanent US green card and return of $800,000
Typical EB-5 Investment Structure
The “Loan Model” is a common EB-5 investment structure, as it provides 2 important benefits:
1. A fixed maturity date – usually 5 years
2. Project assets provided as collateral for the investment
