Every year, the United States, through US Citizenship and Immigration Services CIS), issues 10,000 EB-5 visas to allow international investors to receive lawful US permanent residency by putting funds into job-creating American businesses. Through this program, the US attracts valuable foreign investment.
In 1992, two years after Congress established the EB-5 Immigrant Investor Program, the US government added regional centers to streamline the investment process and make participation more accessible. USCIS designates these centers as intermediaries where investors can pool money with others. The centers then allocate the pooled funds across multiple projects and companies. Organizers must present a proposal demonstrating how investment through their center will benefit investors and the local community. This regional center model allows for more diverse and wide-ranging economic development compared to individual standalone EB-5 investments.
To qualify for the Immigrant Investor Program, applicants must make a sizeable capital investment in a new or expanding commercial enterprise of at least $1 million for most US geographical locations. But for targeted employment areas that the USCIS designates as needing economic stimulus through job creation, the minimum investment is set at $800,000. The program requirements mandate that applicants participate in managing the business, which must create or preserve at least 10 full-time jobs, directly or indirectly, for US workers within two years of gaining a conditional green card.
Investing in areas designated as Targeted Employment Areas through the EB-5 program offers expedited immigration benefits compared to standard EB-5 investments. Projects in these areas are eligible for priority application review and the issuance of visas from a reserved pool. This helps bypass backlogs. Individuals who invest in qualifying projects also receive priority processing of their Form I-526 petition, i.e., the initial application that an EB-5 investor files with USCIS to obtain conditional permanent residence.
When the primary EB-5 applicant receives a green card, they can immigrate to the US with their spouse and unmarried children under 21. Recent reforms now protect unmarried children of EB-5 investors from losing eligibility for a green card after turning 21, provided the parents retain permanent residency and petition for the child's status within one year. Additionally, EB-5 investors must seek to have conditions lifted upon the two-year conditional visa period ending. The entire investor's family receives permanent US residency upon the USCIS removing these conditions.
To maximize the benefits of the EB-5 program, investors should wisely select opportunities with the program's long-term requirements and goals in mind. A key consideration is the approval of the Form I-829 petition, which facilitates the transition from conditional visas to permanent green cards. This process underscores the importance of meeting employment-generation targets and maintaining compliance over time.
Beyond fulfilling EB-5 criteria, most investors aim to safeguard their sizable financial commitment and recoup their capital over time. When selecting an investment opportunity, they should consider how well the proposal can keep their invested money safe during the long process. They should also identify realistic plans to recoup their money and possible profits upon receiving permanent residency.
Additionally, when choosing regional centers in the EB-5 program, investors should consider various factors, including the organization's geographic scope, industry focus, risk-mitigation strategies, history of approvals and job-creation milestones, and regulatory adherence. Regarding sector focus, EB-5 investors may prefer centers that diversify across multiple sectors to reduce risk exposure. The approval rates for Forms I-526 and I-829 are also critical considerations, given the goal of obtaining permanent residency. A proven track record can help optimize chances of success.
