How To Make An EB-5 Investment

If you’re looking to move to the U.S. with your spouse and children and would like to ultimately get U.S. citizenship, then the EB-5 Program may be the best pathway for your family.

The EB-5 Program may sound confusing and complex at first, but it doesn’t have to be. Here is a breakdown of the steps to making an EB-5 investment.

1. Determine whether you can transfer the requisite amount of funds out of your home country.

 You may be subject to various laws of your home country as well as international laws. You also may be surprised to learn of treaties between your country and the USA. 

2. Find an EB-5 Immigration attorney to help advise you on the process.

 You will need an immigration attorney with EB-5 knowledge to file your EB-5 petitions: Form I-526 and Form I-829. This attorney, however, can also assist you by reviewing any offering agreements and other contracts associated with the EB-5 project you’ve selected. 

3. Select an EB-5 project.

 Determine whether you will invest in the Basic EB-5 Program or the Regional Center Program. You will more than likely want to also invest in a project located in a targeted employment area (TEA). This is because an EB-5 project located in a TEA designation allows investors to qualify for the reduced minimum investment amount of $500,000. If an EB-5 investor chooses a project not located in a TEA, then the minimum required investment amount is $1 million. You will also likely want to invest in a regional center project because the job creation requirements are much more flexible. Lastly, the project must be an at-risk project, meaning there cannot be any guarantees that the investor will receive their money back. 

4. Fund an escrow account.

 Once a project is vetted and selected, the EB-5 investor will need to make the required minimum investment into an escrow account. The Regional Center can assist with the process of finding a suitable escrow agency. These funds will be released into the investment vehicle as determined by the escrow agreement. Depending on the escrow agreement, the funds may be released prior to filing Form I-526, at the time of filing Form I-526, or upon Form I-526 approval. Consult with your immigration attorney to learn more. 

5. File your Form I-526 with USCIS.

 At this stage, your EB-5 immigration attorney will file your I-526 petition, which will show that you made an investment, that this investment will create the requirement number of jobs for qualified U.S. workers, and that your funds came from lawful sources. Once you’ve filed your Form I-526, you become eligible for a visa when one becomes available. When one becomes available, you will obtain conditional permanent residency for a two-year period while you complete the EB-5 Program requirements. When the EB-5 Program requirements are completed in the time period allowed, you apply using Form I-829 to remove the conditions on your permanent residency. Five years after receiving conditional permanent residency an EB-5 investor and their family members may become eligible for U.S. citizenship. 

For more information about the EB-5 investment process, send us a message.

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Who Qualifies For An EB-5 Visa?

Can anyone qualify for an EB-5 visa? What are the EB-5 Immigrant Investor Program requirements for investors?

Who Qualifies:

1. Foreign nationals
2. Who can invest $500,000 (or, in some cases $1 million) in a job-creating new commercial enterprise
3. And, Can provide proof that the funds came from lawful sources

Unlike other visa categories there are NO:

• Skill requirements
• Age requirements
• Experience requirements
• Education requirements
• Or, Language requirements

When investing in the EB-5 Program there are two different paths an investor can take.Requirements for investing in the Direct Program:An EB-5 investor who wishes to create their own business, restructure or expand an existing business, can qualify for the EB-5 Direct Program. The EB-5 Direct Program is a permanent program and investors do not have to worry about it needed reauthorization like the EB-5 Regional Center Program.In order to fulfill the EB-5 Direct Program requirements an investor must show that they sustained their investment in the business for the required amount of time and that the business will create or save 10 direct, full-time jobs for qualified U.S. workers.Additionally, EB-5 Direct Program investors must be actively involved in the management of the business.Requirements for investing in the Regional Center Program:For investors who have no interest in creating and controlling their own business, the Regional Center Program may be your best option. EB-5 Regional Centers are public or private organizations that pool EB-5 investor funds into sponsored capital investment projects.While the Direct Program requires an investor to show direct job-creation, a Regional Center has the distinct advantage of also being able to count indirect and induced job creation, making fulfilling the EB-5 Program requirement much easier.Investors who choose to invest with a Regional Center also do not have to control the day-to-day operations of their new commercial enterprise. Instead, they can take a policy-maker position. This means that they do not have to live near their investment, and many choose instead to live in places with top school districts for their children.How to qualify for the $500,000 investment amount instead of the $1 million investment amount:It’s a common misconception that only EB-5 Regional Center projects qualify for the lower minimum investment amount of $500,000. Regional Centers simply take advantage of targeted employment area designations more frequently than Direct Program investors.A targeted employment area or TEA is a rural or high unemployment area. Investing in a qualified TEA reduces the minimum investment requirement from $1 million to $500,000. Any investor, no matter whether they want to create their own EB-5 business or invest in a Regional Center project can take advantage of TEA and qualify for the lower minimum investment amount.The importance of being an accredited investor:While it is not a requirement of USCIS to be an accredited investor, it is a U.S. securities law requirement. One common way for approved Regional Centers to offer EB-5 investors is to use an exemption under Securities Regulation D, which requires EB-5 investors to be accredited investors.An accredited investor is an individual who:

1. Has a net worth or joint net worth of at least $1 million (not including the value of any primary residence).
2. Has a income of $200,000 per year or a joint income with their spouse of $300,000 per year for each of the proceeding two year as well as an expectation of that same income in the current year.

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