What Should Investors Know About EB-5 Investments? 

The EB-5 visa program allows foreign investors to obtain a U.S. green card by making at-risk investments that create 10 full-time jobs within two years. To qualify, applicants place capital in a new commercial enterprise (NCE) and follow U.S. Citizenship and Immigration Services (USCIS) requirements.

Minimum EB-5 Investment Amounts

$800,000 if the project is in a Targeted Employment Area (TEA), either rural or high unemployment.

$1,050,000 if the project is located elsewhere in the United States.

After making the investment, the investor’s EB-5 attorney files Form I-526 with USCIS to start the green card process.

EB-5 Investment Structures

An NCE can be a corporation, partnership, or limited liability company (LLC). It cannot be a personal residence or other noncommercial activity.

Direct investment requires at least 10 permanent jobs created directly by the enterprise. Regional center investment allows indirect job creation but must be USCIS-approved.

EB-5 investors typically place funds in an NCE, which then lends to or invests in a Job Creating Entity (JCE). These entities are usually separate, though in some direct and regional center investments they can be the same.

Payment and Escrow Options

Investors may pay the full EB-5 amount upfront or make a partial payment with the balance held in escrow (custody by a fund administrator or third party). Funds in escrow are released once the I-526 petition is approved.

Repayment of EB-5 Capital

The project’s offering documents and financing structure determine if and how repayment will be made. Investors should review these terms before committing funds.

How EB-5 Investors Finance Their Investments

Common funding sources include traditional loans from U.S. lenders, retirement accounts such as 401(k) or self-directed IRAs, and structured loan funds or equity participation. Many projects now offer multiple investment classes to match different risk levels and repayment goals. Regional centers and sponsors often use loan models, while equity structures are increasingly common due to changes in real estate financing.

Compliance and Tax Considerations

Investors should account for Corporate Transparency Act reporting for NCEs, applicable accounting rules for debt funds under the Current Expected Credit Loss (CECL) model, and state regulations on real estate-related financing. Tax and financial reporting are key elements in structuring EB-5 investments.

EB-5 investors must understand minimum investment thresholds, job-creation rules, and repayment structures. Selecting between direct or regional center investment, ensuring lawful funding sources, and carefully reviewing offering documents with professional legal guidance can help meet USCIS requirements and achieve EB-5 immigration goals.