The EB-5 Immigrant Investor Program is a pathway for foreign investors to obtain U.S. permanent residency. They do so by investing in projects that create jobs to stimulate economic growth in the United States. While the program has been around since 1990, it remains widely misunderstood.

Sadly, misinformation and misconceptions about the EB-5 program have led to confusion, missed opportunities, and even costly mistakes for foreign nationals. Although some of these claims have elements of truth, they often overcomplicate and distort reality.

By separating fact from fiction in how EB-5 investment actually works, you can navigate the program with confidence. In this article, we will be debunking some common myths about EB-5 for investors considering residency in the U.S.

Common Myths About The EB-5 Investment Program

Understanding misconceptions about EB-5 investment is crucial for navigating what can be a complex yet rewarding process. Keep reading as we clarify common myths and provide factual information to help you understand the EB-5 program better.

MYTH: You Must Be a Millionaire to Qualify for EB-5

It’s easy to see why this myth persists—after all, the EB-5 program requires a significant investment. Investors must contribute at least $1,050,000 to a new commercial enterprise or $800,000 if the project is in a targeted employment area (TEA).

However, having a million dollars sitting in a bank account isn’t a requirement. The EB-5 program accepts capital from various legitimate sources, including personal earnings, savings, inheritance, gifted funds, proceeds from property sales, loans, and liquidated investments. The key requirement is proving that all investment funds come from lawful sources with proper documentation.

Additionally, investors don’t always need to provide the full amount upfront. A partial investment can be made, with the remainder contributed within a set period. This flexibility allows investors to strategically manage their assets while meeting program requirements.

MYTH: The EB-5 Program Is Just a Way to Buy U.S. Citizenship

Fact: The EB-5 program does not grant automatic U.S. citizenship. It provides a pathway to permanent residency through investment and job creation.

Foreign nationals must make a minimum investment of $800,000 in a targeted employment area (TEA) in a qualifying business that creates at least 10 full-time jobs for U.S. workers. You must prove that the funds were legally obtained and invested as required. After obtaining a conditional Green Card, you must continue meeting the program requirements for at least two years before applying for full, unconditional permanent residency.

You can apply for U.S. naturalization after holding a Green Card for at least five years. Investors must meet residency requirements, pass an English and civics test, and demonstrate good moral character to qualify.

MYTH: Getting an EB-5 Green Card Is a Long Process

Before the EB-5 Reform and Integrity Act (RIA) of 2022, investors from backlogged countries like China and India faced years-long delays in obtaining a Green Card. Now, thanks to the set-aside visa categories, that waiting period can be significantly reduced.

Rural EB-5 investments, which receive 20% of the annual EB-5 visa allocation, are processed with priority by USCIS. As a result, investors in rural projects can secure their Green Cards in less than 12 months—a major advantage over traditional EB-5 investments.

However, this window of opportunity won’t last forever. As demand for set-aside visas grows, backlogs will eventually affect these categories as well. Investors from India and China should act now to take advantage of current availability, especially while concurrent filing remains an option. Once these countries retrogress on the visa bulletin, investors will lose the ability to live and work in the U.S. while their EB-5 petitions are pending.

MYTH: The EB-5 Program Is Replete With Fraud

Fact: While there have been cases of fraud, the EB-5 program is heavily regulated to protect investors.

Like any investment program, the EB-5 program has faced instances of fraud and mismanagement, often from unverified project developers rather than the program itself. However, these cases do not define the entire EB-5 process. The U.S. government has strengthened oversight and introduced strict regulations to reduce fraud risks.

For example, the EB-5 Reform and Integrity Act of 2022 (RIA) increased transparency by requiring third-party audits, background checks on developers, and closer government supervision. Also, reputable regional centers regularly report financial and job creation data to ensure compliance. To further protect yourself, you should conduct due diligence and work with experienced professionals who can safely help you navigate the process.

MYTH: The EB-5 Program Is Only for People From Certain Countries

Fact: The EB-5 program is open to investors from all nationalities.

Anyone who meets the program’s investment and job creation requirements can apply, regardless of where they are from. However, some countries face longer wait times due to high demand.

On the other hand, foreign nationals from countries with low application numbers generally have faster processing times. Despite visa backlogs for some applicants, the EB-5 program remains available to investors worldwide. Generally, you can do the following to reduce the likelihood of delays if you are from a high-demand country:

• Apply under a rural project, which has reserved visa allocations and priority processing.
• Explore concurrent filing if you are already in the U.S. on a valid visa.
• Plan your investment early to account for processing times.

MYTH: Investing Directly in an Already-Created Business Is Easier and Faster

Fact: Investing in an existing business may be possible, but it must meet strict EB-5 requirements, making it neither easier nor faster.

Although an established business may seem simpler, you will still have to prove that your capital directly created at least 10 new jobs, not just maintained existing ones. The business must also meet the EB-5 definition of a “new commercial enterprise.” Therefore, simply buying a business or investing passively doesn’t qualify. You must actively contribute to the company’s growth and prove measurable economic benefits.

This is why investing through a designated regional center is the most straightforward and convenient option. With over 95% of EB-5 investors choosing this path, it remains the preferred route due to its structured investment model and simplified job creation requirements.

MYTH: Investors Can’t Leave The U.S. While Their EB-5 Application Is Being Reviewed

Fact: Investors can travel outside the U.S. while waiting for their Green Card, but they need proper documentation.

During the EB-5 application process, travel rules depend on the investor’s immigration status:

• Investors applying abroad can travel freely because traveling does not affect the application process. However, they must attend their visa interview at a U.S. consulate once scheduled.
• Investors applying from within the U.S. cannot leave the country unless they have filed the I-131 petition (advance parole). This is a travel document allowing re-entry during the application process, and leaving without it may result in application denial or reentry issues.

Once investors receive their conditional Green Card, they can travel internationally without needing special permission. However, they must not stay outside the U.S. for long periods at a time, as this can affect their permanent residency status.

Contact EB5AN to Have a Better Understanding of the EB-5 Process

Securing an EB-5 visa is more than just an investment—it’s a life-changing opportunity to build a future in the United States. Therefore, you should not let misinformation deter you from exploring this privilege. Equip yourself with accurate information and realistic expectations so you can start this journey confidently.

If you’re considering applying for an EB-5 visa, you can partner with the experienced professionals at EB5AN. We specialize in guiding investors through every step of the EB-5 process. Our EB-5 projects have a proven track record of assisting over 2,300 families from more than 70 countries.

Schedule a one-on-one consultation with our expert team today for personalized guidance on your EB-5 investment.