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A Definitive Guide to The EB-5 Visa

This guide aims to provide up-to-date information about the EB-5 Program’s origin, purpose, requirements, and benefits to immigrant investors and their families.

What is The EB-5 Visa?

The EB-5 Program provides qualified foreign investors with the opportunity to gain permanent residence (a “green card”) in return for investing $800,000 in projects located in Targeted Employment Areas that create at least ten permanent full-time jobs for U.S. workers.

The Benefits of EB-5 Visa

  • Eligible EB-5 investors receive lawful permanent resident status in the U.S. along with their qualifying family members. They can live and work anywhere in the U.S. and travel in and out of U.S. without any restrictions.
  • EB-5 applicants who reside in the U.S. with lawful status are permitted to adjust their visas to that of a lawful permanent resident (Form I-485) concurrently with the filing of their EB-5 petition (Form I-526E), which allows applicants to remain in the U.S. while their immigration applications are pending.

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.

What is a Regional Center?

A Regional Center is an entity designated by the USCIS to sponsor EB-5 projects for EB-5 investors pursuant to the EB-5 Program. Regional Center-based investments are “passive,” in that EB-5 investors retain certain voting rights and policymaking rights in the New Commercial Enterprise (NCE) but otherwise are not involved in day-to-day functions of the Regional Center or the EB-5 project.

 

Types Of EB-5 Deal Structures: Debt And Equity

The two most common deal structures for EB-5 offerings are debt and equity.

  • Debt structure typically has stronger collateral, including liens on real estate and/or equity interests in the project entity, and a clearer timeline in terms of repayment.
  • Equity structure typically has more upside potential but collateral is often more limited.

Investor’s Source Of Funds

The EB-5 Program requires that all capital invested by EB-5 investors is “obtained by lawful means.” This essential requirement means that capital obtained through any criminal or otherwise unlawful activity is strictly prohibited. EB-5 investors can only invest capital that comes from a legal source and its origin can be tracked and identified.

The USCIS requires a detailed overview of the capital investment funds and their source, and the documentation required may be extensive depending on each EB-5 investor’s particular circumstances. EB-5 investors should also be able to prove the source of funds used to cover any administrative fees associated with the investment project, as USCIS may require documentation for these expenses as well.

When is The Right Time to Apply For an EB-5 Visa?

EB-5 investors should begin their investment process as soon as possible due to the following reasons:

  • I-526E Petition processing time keeps increasing
  • Visa allocation – invest early to avoid any (potential) retrogression and backlogs
  • Job and business opportunities
  • Children may age out

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 a “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 in high unemployment areas and $1,050,000 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 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.

What is the minimum capital investment amount outside a high unemployment area?

The minimum capital investment amount outside a high unemployment area is $1,050,000.

What is the minimum job creation requirement per EB-5 investor?

Each EB-5 investor must create or preserve at least 10 full-time jobs in the United States.

Who receives lawful permanent residency through the EB-5 Program?

  • The investor
  • The investor’s spouse
  • Any unmarried children under the age of 21
  • Any unmarried adopted children under the age of 21

EB-5 Visa Availability

The USCIS allocates 10,000 visas to the EB-5 Program each fiscal year (October 1 to September 30). EB-5 visas are very popular and the demand for EB-5 visas has increased consistently since 2009.

The EB-5 Reform and Integrity Act created new EB-5 immigrant visa set-asides for qualified immigrant investors. Each fiscal year, a certain percentage of EB-5 immigrant visas are available to qualified immigrants who invest in specific areas:

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General EB-5

General EB-5

1. What classes of EB-5 visas are available?

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2. How many visas are available to EB-5?

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3. What are rollover and carryover visas?

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4. How often do rollover and carryover visas increase EB-5 visa numbers?

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5. Who can qualify for an EB-5 Unreserved Visa?

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6. Could a China-born EB-5 applicant facing retrogression in the High Unemployment category receive an Unreserved visa instead?

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7. Could an India-born EB-5 applicant facing retrogression in the High Unemployment category receive an Unreserved visa instead?

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8. Who can qualify for an EB-5 Set Aside Visa?

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9. How and when does an EB-5 investor choose an EB-5 visa class?

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10. Can Department of State choose a visa class for the EB-5 applicant?

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11. What determines the order and priority for EB-5 visa allocation?

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12. What is a priority date, and what difference does it make?

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13. What are country caps and how do they affect visa allocation?

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14. How do country caps apply in EB-5 and in set-aside categories?

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15. What does “retrogression” mean?

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16. Can China-born applicants get more than 7% of High Unemployment Set Aside visas?

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17. Can India-born applicants get more than 7% of High Unemployment Set Aside visas?

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18. Does Taiwan risk retrogression in the EB-5 High Unemployment Set Aside category?

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19. Can people from low-demand countries experience retrogression in EB-5?

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20. Is Vietnam subject to country limits or retrogression in EB-5?

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