Can anyone qualify for an EB-5 visa? What are the EB-5 Immigrant Investor Program requirements for investors?
Who Qualifies:
- Foreign nationals
- Who can invest $500,000 (or, in some cases $1 million) in a job-creating new commercial enterprise
- 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:
- Has a net worth or joint net worth of at least $1 million (not including the value of any primary residence).
- 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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