EB-5 FAQs
Established by the U.S. Congress in 1990 through the Immigration and Nationality Act (INA), section 203(b)(5), 8 U.S.C. § 1153(b)(5), the EB-5 Immigrant Investor Program is an initiative that allocates 10,000 immigrant visas annually. It targets qualified applicants seeking to become permanent residents by investing in new commercial enterprises that positively impact the US economy
In an effort to boost immigration via the EB-5 route, the U.S. Congress introduced the Immigrant Investor Program in 1993 and earmarked 3,000 of these visas specifically for foreign investors who channel their investments through a Regional Center approved by United States Citizen and Immigration Services (USCIS).
To qualify for an EB-5 Visa, an investor is typically required to contribute $1,050,000 USD. However, for investments in either rural settings or Targeted Employment Areas (TEAs) that experience higher levels of unemployment, the investment threshold is reduced to $800,000. Moreover, it is imperative for the developer to prove that their investment has led to the creation of at least 10 jobs for Americans through direct, indirect, and induced job creation.
The minimum investment amount is set at $800,000 USD for projects situated in either rural areas or Targeted Employment Areas (TEAs). For projects outside of these specific areas, the investment minimum rises to $1,050,000 USD.
A TEA is a region that has experienced an unemployment rate averaging at least 150% higher than the national average. More recently, the definition has expanded to encompass cities and towns boasting populations of 20,000 or more, even if they are located outside of metropolitan areas.
- Those who gain legal, permanent residency through the EB-5 Investor Program are afforded the same rights and privileges as all other lawful permanent residents of the United States.
- The U.S. is a safe harbor for Green Card holders, their families, and their financial assets.
- Green Card holders can freely enter and leave the United States, staying for any duration they wish.
- Green card holding EB-5 investors can pursue personal, trade, and business activities and have the right to reside, work, or start businesses anywhere in the United States.
- Green Card holders gain access to internationally recognized U.S. colleges and universities, and EB-5 investors can benefit from the lower tuition rates available to residents.
- Student Green Card holders are entitled to work while pursuing their studies.
- Green Card holders can benefit from various public services, including education, healthcare, and social security.
- After proper application, Green Card holders can sponsor family members for immigration.
- After 5 years of residing in the United States, Green Card holders gain a pathway to U.S. citizenship.
Eligibility for receiving a Green Card through the EB-5 program extends to the investor, his or her spouse, and all unmarried children under the age of 21.
Investors are not obligated to possess previous business experience or meet any educational prerequisites. The sole requisites for the investor include:
- Possess the necessary, lawfully acquired investment capital
- Furnish USCIS with the required personal background documentation
No, proficiency in English is not a requirement for participation in the EB-5 program. Nevertheless, all materials filed alongside your EB-5 application (Form I-526 E) must be completed in English and signed by the investor.
If any documents are submitted in a language other than English, they must be accompanied by a certified translation.
According to USCIS, it is imperative for EB-5 investors to furnish evidence indicating that their assets were acquired through legal means. This entails demonstrating that the investment funds were obtained through lawful avenues such as salary, property, inheritance, gifts, loans, investments, legal business endeavors, or other lawful sources.
Yes, it is permissible to use assets gifted by a relative for an EB-5 investment, under the following conditions:
- Any applicable gift taxes have been paid
- You can substantiate that the gifted amount constitutes an actual “arms-length” transaction—not a facade or a temporary “gifting” intended for return after permanent residency status is obtained
USCIS regulations deem investors adequately engaged in an EB-5 project if they serve as limited partners in a limited partnership that adheres to the Uniform Limited Partnership Act. As limited partners, investors are not obliged to actively engage in the management or daily operations of the new commercial enterprise in order to obtain a Permanent Green Card through this program.
The project manager assumes the position of General Partner within the Limited Partnership structure. It with oversees the interests of all members of the Limited Partnership, including day-to-day management and the delivery of regular progress reports.
No, you are not obligated to reside in any specific location within the United States. The EB-5 Visa program permits investors to maintain their Permanent Residency status while living anywhere within the country.
The EB-5 Immigrant Investor Program welcomes investors from diverse backgrounds, cultures, and countries. There is no specific profile for an ideal investor, and participants in the program come from a wide variety of personal and professional backgrounds.
In principle, yes. But since some countries may have less reliable tax and financial documentation available, applicants from certain countries may need to work more diligently to provide USCIS with sufficient documentation of funding sources.
The USCIS website is a great source for researching and accessing all pertinent forms, laws, and regulations.
Both cards offer the same rights and privileges; the only distinction is the temporary nature of the Conditional Green Card.
USCIS regulations stipulate that when an investor is approved for an EB-5 Investor Visa, he or she initially receives a Conditional Green Card, which is valid for 2 years.
After 1 year and 9 months, a 3-month window opens, during which the investor must file another application with USCIS, verifying that
- All investment funds have been appropriately used
- Job creation requirements have been met
Upon the removal of conditions from the temporary Green Card, full resident status is granted, and a Permanent Green Card is issued to the investor.
To complete the EB-5 process and attain permanent U.S. residency, foreign investors need to navigate 3 key steps:
Step 1: USCIS Form I-526 E, Immigrant Petition by Regional Center Investor
Following completion of the Accredited Investor Questionnaire, selection of a project, signing of all relevant documents, subscription to the project, and placement of funds in the designated project accounts, the I-526 E petition marks the first official step in the EB-5 Visa application process. The investor’s immigration attorney submits this form, along with supporting documentation demonstrating that the investment meets all EB-5 requirements, to USCIS.
Step 2: Adjust Status (Form I-485) or Consular Interview
After approval of the I-526 E petition, investors already residing in the U.S. may file a completed application to Register Permanent Residence or Adjust Status (Form I-485) with USCIS.
For investors residing outside the U.S., a similar process is followed, but it involves applying for a Consular Interview in their own country of residence.
Step 3: USCIS Form I-829 – Petition by Investor to Remove Conditions
1 year and 9 months after the initial approval of Form I-526 E, investors can submit an I-829 petition to USCIS, to establish permanent residency and have conditions removed from their Green Card. Through this petition, investors must demonstrate sustained investment throughout the 2-year conditional period, as well as the project’s fulfillment of job-creation requirements.
Throughout this process, the investor receives assistance from their chosen partner in providing necessary documentation as and where required.
Upon approval of the I-829 application, full permanent resident status is granted to the investor, their spouse, and any unmarried children under 21 years of age.
After approval of your I-526 E Petition, you will await notification from the U.S. Consulate in your home country to prepare for the visa interview. The purpose of this process is to conduct medical, police, security, and immigration history checks for the investor and their family. During the interview, the consulate officer may discuss these matters and review information provided in the I-526 E petition, potentially asking the investor to summarize the nature of their immigrant investment.
Unless the reasons are associated with immigration fraud or other significant issues, this type of past rejection does not automatically disqualify an applicant. However, before submitting your application, it is crucial to disclose any criminal, medical, or U.S. immigration history problems to the limited partnership and legal counsel.
Yes, it is possible for family members to interview in different countries. Typically, the interview site is determined by the country of origin or where the family currently has ties. But in some cases, a family member may be located in a different country—say, a student attending university in the U.S. In such situations, the student is not required to return to the country of origin for the interview and can instead adjust their status in the United States at their USCIS district office.
The most prevalent issue encountered by investors is inadequate documentation of the source of funds. Many individuals attempt to disclose minimal information, only to have their file returned with a request for additional details.
Given the current climate of heightened security concerns and scrutiny regarding money laundering, USCIS adjudicators necessitate a thoroughly documented source of funds. So it is advisable to provide comprehensive information from the outset.
The first requirement for any investor is to enter the United States within 180 days of receiving a Visa at the United States overseas consulate office. Next, the investor must establish residency in the United States by providing evidence of intent to reside. This might include actions like:
- Opening bank accounts
- Obtaining a driver’s license or social security number
- Paying state and federal income taxes
- Renting or buying a home
Although United States residents may work overseas if necessary, it’s crucial for all permanent residents to spend more than 6 months out of each year in the U.S. Failure to do so may result in the abandonment of permanent residency status.
Once you obtain a Green Card and become a permanent legal resident, you have most of the rights and obligations of U.S. citizens, except for the right to vote and access certain public benefits. You are subject to the same tax filing requirements and entitled to the same tax rates and deductions as U.S. citizens.
Legal permanent residents can apply for U.S. Citizenship after residing in the United States for 5 years. A person can attain U.S. Citizenship:
- By being born in the U.S.
- By being born to a U.S. citizen
- Through naturalization
Naturalization is a multi-step process, and the first step is to become a Legal Permanent Resident (LPR), then maintain LPR status for 5 years.
Additionally, applicants must maintain physical presence in the U.S. for a minimum of 30 months during the 5 years preceding the naturalization application. Once naturalized and granted U.S. citizenship, individuals gain additional benefits, including the right to vote and hold public office.
An escrow bank account is a legally designated holding account established in a reputable bank. It is commonly used in a variety of transactions, such as the sale of real estate, businesses, and personal property.
To comply with EB-5 requirements, an investor must transfer the $800,000 or $1,050,000 capital investment amount to the project’s designated account before filing their I-526 E application for an EB-5 Visa. Typically, proof of the invested capital includes wire transfer receipts and confirmation of funds letters issued by the bank.
When the investor deposits the funds, the attorney or bank enters into an agreement with the investor, stipulating that the funds can only be released from the account after the investor’s I-526 E petition has been received by USCIS.
This arrangement provides a level of protection for the investor, helping to keep funds secure while the necessary immigration processes are initiated.