The EB-5 Immigrant Investor Program was created by Congress in 1990 to help grow the U.S. economy by encouraging foreign investors to create jobs and invest capital.
In 1992, the Regional Center Program was introduced, allowing investors to qualify for the EB-5 visa by working with USCIS-approved regional centers. These centers focus on driving economic growth in specific areas.
In March 2022, the EB-5 Reform and Integrity Act brought new rules to the program, including updates for the Regional Center Program. This program is now authorized to issue EB-5 visas until September 30, 2027.
EB-5 Visa Criteria: Capital, Employment, and Business Structures
To achieve permanent residency through the EB-5 visa program, foreign investors must fulfill specific requirements set by the U.S. Citizenship and Immigration Services (USCIS). Generally, applicants need to meet criteria regarding the investment amount, job creation, and ensure the business receiving the investment is eligible under the EB-5 program. Once all conditions are satisfied and approved by the USCIS, the investor, their spouse, and children under 21 will be granted a green card, allowing them permanent U.S. residency.
Overview of EB-5 Visa Requirements
To be eligible for an EB-5 visa, applicants must meet the following conditions:
Capital Investment:
Employment Creation:
Business Structure:
Required EB-5 Capital Investment
According to the EB-5 Reform and Integrity Act of 2022 (RIA), applicants must typically invest $800,000 or $1,050,000 into a U.S. business enterprise. The investment can be made in cash, property, inventory, equipment, secured debt, or equivalents and must be valued at the fair-market rate in U.S. dollars.
The minimum investment amount may be reduced from $1.05 million to $800,000 if the investment is made in a business located in a rural area, high-unemployment zone, or infrastructure project.
EB-5 Job Creation Criteria
USCIS mandates that EB-5 investments create at least 10 full-time jobs for U.S. workers within two years since the investor made the investment. In some cases, the investor must prove that their investment directly created jobs within the business receiving the investment. However, if the investment is made through a Regional Center EB-5, the investor may only need to show that 10 indirect or induced jobs were created. Indirect jobs are those in businesses supplying goods or services to the EB-5 project, while induced jobs are those within the community due to spending by employees of the EB-5 project.
EB-5 Business Structures
EB-5 visa applicants can invest in various types of business entities. Generally, applicants can invest directly in a new commercial enterprise or through a Regional Center EB-5. New commercial enterprises must be legal for-profit entities and can take several forms, including corporations, partnerships (limited or general), sole proprietorships, business trusts, or other private or public entities. All new commercial enterprises must have been established after November 29, 1990.
However, older businesses may qualify if the investment results in a 40% increase in employees or net worth, or if the business undergoes a restructuring that turns it into a new commercial enterprise. In addition to individual businesses, EB-5 visa applicants can also invest through Regional Center EB-5 projects, which may offer additional benefits as the investor does not need to independently establish the EB-5 projects.
Are you ready to begin your journey with EB-5 Lending Alliance? Contact us today to learn more about our investment opportunities and how we can assist you with the EB-5 visa journey. Our team is here to answer any questions and guide you every step of the way.