EB5AN offers a free interactive targeted employment area (TEA) map that allows users to determine whether an address is in a TEA. In addition to determining TEA eligibility, users can also download a free TEA qualification report to include with their United States Citizenship and Immigration Services (USCIS) petitions.

Why Is TEA Designation Important?

The EB-5 investment program’s most challenging requirement is usually the minimum investment amount. Foreign nationals interested in becoming permanent U.S. residents must put up at least $1,000,000 of their lawfully sourced capital if their project is located outside a TEA.

However, the minimum EB-5 investment amount is only $500,000 for projects located in TEAs. Due to this reduced investment requirement, TEA projects are far more popular among EB-5 investors—in fact, 95% of all EB-5 investors choose TEA projects.

How Are TEAs Designated?

An area is designated as a TEA if it is rural or has high unemployment. A rural TEA cannot be in a metropolitan statistical area (MSA) or on the outskirts of a city or town with a population greater than 20,000. High-unemployment TEAs must have an unemployment rate at least 150% above the national average.

USCIS accepts four calculation methods for TEA eligibility. Only one of these methods relates to rural TEA designation: rural TEAs must use regional data from the U.S. Office of Management and Budget and the most recent 10-year U.S. census.

The three other methods all deal with high-unemployment TEAs:

1. The ACS calculation method uses census tract data from the five-year American Community Survey (ACS).
2. The county-level method uses Bureau of Labor Statistics (BLS) data for an entire county.
3. The census-share method uses a combination of census tract data from the five-year ACS and county-level data from the BLS.

EB-5 investors must provide documentation in their I-526 petition proving that their project is in a TEA.

Data from TEA Map Searches

Most EB5AN TEA map searches carried out from October 26, 2020, to May 13, 2021, looked for addresses located in just three states—Florida, California, and Texas. California has the highest percentage of addresses that qualify as TEAs: a remarkable 64%. Across the United States, approximately 60% of searched prospective project sites currently qualify as TEAs.

If you are interested in finding out whether an address falls within a TEA, please visit EB5AN’s interactive TEA map.

Thousands of foreign nationals have benefitted from participating in the EB-5 Immigrant Investor Program and are currently enjoying the benefits of obtaining U.S. green cards for themselves and their immediate family members. The EB-5 program enables foreign nationals to invest in qualifying U.S. businesses, create at least 10 full-time jobs, and thus apply for permanent resident status. Since 1990, the EB-5 investment industry has had a remarkably positive impact on the United States, providing businesses with invaluable investment capital. Moreover, the successful and wealthy foreign nationals who relocate to the United States through their EB-5 investments become valuable assets to the country.

Despite their positive effects, the EB-5 program’s regulations are subject to government modification, which has occasionally resulted in sudden changes to the EB-5 investment industry. Two of the most notable examples of such policy changes took place in June 2021. On June 22, a federal court ruled to invalidate the EB-5 Final Rule, a controversial set of regulations that had made several important changes to the EB-5 program. The most significant change brought about by the Final Rule was the raising of the minimum required investment amounts. As of the June 22 ruling, foreign nationals are allowed to make an EB5 investment at $500,000 for targeted employment area (TEA) projects and $1,000,000 for non-TEA projects.

Just a few days after the court ruling, the EB5 investment industry received another shock when the regional center program expired on June 30, 2021. The Senate had failed to pass the EB-5 Reform and Integrity Act, a bill that would have reauthorized regional center investments for several more years. Even though this suspension is likely temporary, many foreign nationals interested in making an EB-5 investment may have been discouraged by the news—after all, regional center investments had been the most popular way to participate in the EB-5 program. Despite these abrupt changes, EB-5 investors still have at their disposal a promising alternative to regional center projects: direct EB-5 investments.

What Are Direct EB-5 Investments?

Direct EB-5 investments are made directly to the EB-5 business in question and not to a regional center. United States Citizenship and Immigration Services (USCIS) has set stricter job creation requirements for direct EB-5 projects—direct investors can only count jobs that are created by the EB-5 business and appear on its payroll. Since indirect and induced jobs do not count toward fulfilling the employment creation requirement, it is usually more difficult for direct EB-5 investors to generate the necessary number of jobs.

Interested foreign nationals should note that, as of June 30, 2021, they are only allowed to make direct EB-5 investments. In fact, USCIS released a statement on its website confirming that they will no longer accept I-526 petitions associated with regional centers. In contrast, the direct EB5 investment industry does not depend on periodic renewal.

Why Make a Direct EB-5 Investment?

Despite the stricter guidelines for calculating employment creation, direct EB-5 projects do qualify for the above-mentioned reduced investment amounts. Moreover, many foreign nationals find that direct EB-5 investments may better suit their needs if they want to gain significant profits as well as permanent resident status: direct projects typically offer investors more control over operations and management decisions than regional center projects, in which investors do not necessarily have to be involved in day-to-day operations.

Direct EB-5 investors are allowed to invest in a wide variety of businesses. They may even choose to invest in a troubled business, an existing business, or a new branch of a franchise. The latter option offers several enticing benefits for investors, allowing them to enjoy the existing franchise’s marketing, experience, and successful branding.

As the above facts indicate, direct EB-5 investments are a promising alternative to regional center projects. Keeping in mind that the minimum investment amounts may be raised once more, potential investors would do well to identify suitable direct EB-5 investment opportunities as soon as possible.

For years, China has been the country with the largest overall number of applicants to the EB-5 Immigrant Investor Program. As a result, Chinese investors seeking a Green Card in the United States through the EB-5 program have had to contend with challenges and delays, unlike foreign nationals from any other country in the world.

This article will examine the historical and current trends in the Chinese EB-5 visa market, exploring the number of unique challenges Chinese investors face—from visa retrogression to long processing times—while also explaining a key strategy to help overcome some of the most persistent obstacles.

How Interest in the EB-5 Visa Program From Chinese Investors Has Evolved Over Time

The demand for EB-5 visas among Chinese investors has been high for many years, but interest has fluctuated over time due to various factors. From 2010-2014, demand from Chinese investors for EB-5 visas surged as rapid economic growth swept across mainland China, increasing wealth and leading to a spike in high-net-worth individuals. In 2014, Chinese investors were issued more than 9,000 of the 10,000 available EB-5 visas.

Beginning in 2018, the EB-5 visa processing time for Chinese applicants slowed down considerably, leading to a drop in demand. Additionally, certain policy changes, particularly increased scrutiny about what constitutes a lawful source of funds (SOF), led to further declines in demand among Chinese investors.

However, Chinese investors’ demand for EB-5 visas began to rise again after the enactment of the EB-5 Reform and Integrity Act (RIA) in 2022, which introduced policy changes that increased visa availability while speeding up processing times. More on the impact of the RIA’s reforms will be explored later in this article.

The EB-5 Visa Challenges Facing Prospective Chinese Applicants

Because demand among Chinese citizens for EB-5 visas has been high for so long, they have had to face many unique challenges. This section will explore some of those challenges in greater depth.

EB-5 Visa Retrogression

Because of the sheer number of Chinese investors who are interested in the EB-5 visa program, there has been a backlog in Chinese EB-5 petitions since May 2015. As of May 2024, the backlog is still far from being cleared.

This backlog is the result of “visa retrogression,” which occurs when the demand for EB-5 visas exceeds the per-country limit in a given year. Historically, there are only 10,000 EB-5 visas available during each immigration fiscal year (October 1 to September 30). Those 10,000 available EB-5 visas include those available for the investor as well as their spouse and any unmarried children under 21. As a result, the number of families that are eligible to apply for conditional Green Cards through the EB-5 program each year may actually be much lower than 10,000.

Furthermore, the government imposes a per-country quota on available EB-5 visas to make the distribution from one country to the next more equitable. If that limit has already been reached for a particular year, then prospective EB-5 investors need to wait one additional year for their Form I-526E to be processed—a situation known as “visa retrogression.” For backlogged countries like China, where visa demand far outpaces visa supply, many investors may have to wait several years just to begin the process of applying for U.S. permanent resident status through the EB-5 program.

Long EB-5 Visa Processing Times

Chinese investors face longer wait times than foreign nationals from any other country. In fact, the situation for Chinese investors is so unique that, in 2020, the United States Citizenship and Immigration Services (USCIS) website introduced a separate estimated processing time range for Chinese investors.

The most recent estimated EB-5 visa processing times can be found on the USCIS website. These wait times indicate the amount of time it typically takes to process 80% of all applications received. That means that the vast majority of applications will be processed more quickly than the wait time provided by USCIS. However, USCIS does not give any information on the longest or the shortest EB-5 visa wait times.

When EB-5 investors submit Form I-526E, they are given a priority date, which is the date that USCIS receives the form. EB-5 investors from every country other than China and India are eligible to apply for their visas as soon as their I-526E petitions are approved. However, Chinese EB-5 investors are subject to a final action date—they must wait until this date, which is periodically pushed forward, catches up with their I-526E priority date. As a result, EB-5 investors from mainland China may have to wait several years before they can even apply for their EB-5 visas.

The U.S. State Department’s July 2024 Visa Bulletin announced that China’s final action date remains December 15, 2015. Therefore, Chinese EB-5 investors who submitted their I-526E petitions after that date are not yet allowed to apply for their EB-5 visas as of July 2024.

Chinese EB-5 investors do not only have to wait for the final action date to advance—they must also factor in the immigration agency’s adjudication times for their I-526E petitions. USCIS (or the State Department’s National Visa Center) may take several years to evaluate a Chinese EB-5 investor’s application.

Difficulties Funding Projects and Proving Source of Funds

Restrictions on annual remittances can also be a major challenge for potential investors from mainland China. China imposes a limit of $50,000 that can be transferred out of the country each year. To combat these restrictions, Chinese investors have relied on various methods to get around the limit, such as combining funds with other Chinese nationals or transferring their money through accounts in Hong Kong. However, Chinese authorities have been tightening controls, making these transfers more challenging. Still, Chinese investors continue to explore new ways to transfer funds for investments in the United States.

These government limitations also have an impact on Chinese investors’ ability to prove the lawful source of their investment funds. This has become especially challenging as USCIS has increased its own scrutiny, demanding detailed documentation to prove the legal source of capital investment for the EB-5 program. It is highly recommended that Chinese investors—as well as investors from other countries—consult with an experienced immigration attorney to ensure their investment funds are lawfully sourced.

How Can Chinese Nationals Invest in the EB-5 Program?

When the RIA was enacted in 2022, it introduced several policy changes that made the process easier for EB-5 investors, particularly those from mainland China. The law provided the option of EB-5 concurrent filing, allowing investors to file Form I-526E and Form I-485 at the same time, helping to significantly streamline the EB-5 process.

In addition, the RIA introduced new minimum investment thresholds. The updated amounts currently stand at $800,000 for projects located in targeted employment areas (TEAs), as opposed to a minimum investment of $1,050,000 for a new commercial enterprise in other areas. A TEA is defined as:

• An area with a population of fewer than 20,000 people; and
• An unemployment rate of at least 150% of the national average.

These areas are designated based on U.S. census information. The most important aspect for Chinese investors, however, is the potential to avoid visa backlogs and obtain a fast-tracked Green Card by investing in rural TEA projects. The RIA allocated 20% of available EB-5 visas to applicants investing in rural TEA projects—along with an additional 10% for high-unemployment TEAs and 2% for public infrastructure projects. As a result, while there are still some significant backlogs of EB-5 applications in the unreserved category, these set-aside visa categories have been a promising development for investors from mainland China.

Invest in TEA Projects With EB5AN

Currently, there is no additional waiting period or backlog for the reserved EB-5 visa categories. However, the availability of these visas is limited, and there is a possibility that these categories could become oversubscribed in the future. Prospective Chinese EB-5 investors are strongly advised to submit their petitions promptly to secure their place while these reserved visas are still accessible.

EB5AN has helped more than 2,300 families from 60 countries obtain U.S. Green Cards, and we can do the same for you. To begin your family’s journey toward becoming U.S. Green Card holders, schedule a free meeting with our expert team today.

For many years, the EB-5 Immigrant Investor Program has been considered one of the most practical and rewarding visa-by-investment programs in the world. Even though the EB-5 investment industry is governed by numerous regulations, the basics of the program are relatively straightforward: Foreign nationals must make an investment in a qualifying new commercial enterprise (NCE) or a troubled business. This EB-5 investment must comply with all United States Citizenship and Immigration Services (USCIS) guidelines—for instance, the EB-5 capital must remain at risk and be sourced legally. As of July 2021, the required minimum amounts for EB-5 investments are $500,000 for targeted employment area (TEA) projects and $1,000,000 for non-TEA projects. Moreover, each EB5 investment must generate or preserve at least 10 full-time jobs.

Foreign nationals who comply with the above regulations become eligible to apply for conditional permanent resident status. Later, they can become lawful permanent residents of the United States. Even though some other countries offer investor visas, the minimum required investment amounts may be significantly higher than those of the EB-5 program. Clearly, the EB-5 investment visa is the best way for foreign nationals to fulfill their dream of relocating to the United States.

However, some interested foreign nationals may hesitate to make an EB5 investment due to the uncertainty caused by the COVID-19 pandemic, which resulted in difficulties for many EB-5 investment projects in 2020. Additionally, the sudden changes in EB-5 regulations that took place in June 2021 may cause foreign nationals to question the program’s stability—after all, the regional center program expired temporarily on June 30, just a few days after the controversial Modernization Rule was overturned on June 22.

Despite these factors, potential EB-5 investors can be sure that the program is still up and running. In fact, now may be the ideal time to make an EB-5 investment. Interested foreign nationals would do well to consider the main benefits of participating in the EB-5 investment program.

The EB-5 Program Continues During the Pandemic

Even though the COVID-19 pandemic has not ended as of August 2021, USCIS continues to process I-526 petitions, which means that EB-5 investments can still be made. The pandemic may even have benefitted the EB-5 investment industry to some extent: Since unemployment has increased throughout the United States, many more parts of the country could potentially be considered as TEAs. As a result, more investors might be able to invest at the lower minimum amount of $500,000.

Family Members Also Qualify for Green Cards

The EB-5 investor is not the only one who will benefit from participating in the program—their immediate family members will also qualify to receive permanent resident status. The investor’s spouse and any unmarried children under the age of 21 will be entitled to enjoy life in the United States. Further, this opportunity will enable the investor’s children to experience the United States’ world-class education system.

EB-5 Investors Can Apply for U.S. Citizenship

Undoubtedly, one of the most significant benefits of making an EB5 investment is the opportunity to obtain U.S. citizenship. After holding permanent resident status for at least five years (this period includes two years of conditional permanent residency), the investor and their family can submit Form N-400 and apply to become citizens of the United States. U.S. citizenship will enable the family to vote in the United States, travel abroad without restrictions, and even hold dual citizenship if their country of origin allows it.

These are just some of the many advantages of participating in the EB-5 program. Of course, foreign nationals who want to begin the path to permanent resident status will need guidance to navigate the many regulations on the EB-5 industry. To that end, they should consult EB-5 specialists and immigration attorneys, who can help them identify suitable projects and comply with all USCIS guidelines.

The EB-5 investment program is undoubtedly the best way for foreign nationals to begin a new life in the United States. The program enables foreign nationals to obtain U.S. green cards by investing in qualifying new commercial enterprises (NCEs). After making an EB5 investment that generates or saves at least 10 jobs and uses at-risk, legally sourced funds, foreign nationals will be able to apply for permanent resident status. Becoming a lawful permanent resident of the United States will entitle the investor to many privileges. For instance, they will be allowed to live and work anywhere in the country and benefit from the United States’ federal and state laws.

Even though the U.S. government established the EB-5 program in 1990, it wasn’t until 2008 that EB-5 investments gained their current popularity—the economic crisis that took place that year likely made EB-5 investment capital all the more appealing. Since then, the program’s popularity grew exponentially, and 2018 saw a record number of EB-5 investment applications.

Challenges Faced by the EB-5 Program

Admittedly, the EB-5 industry faces certain challenges, which cast a shadow over the program’s positive impact on the U.S. economy. In 2020, the financial crisis generated by the COVID-19 pandemic caused several EB-5 projects to be suspended or even canceled altogether. Additionally, EB-5 investment applications have been subject to pitifully slow processing times—even though USCIS has made admirable efforts to speed up the adjudication process, I-526 petitions may still take years to be approved. In fact, Chinese EB5 investment applications have been backlogged since May 2015, so EB-5 investors from China will have to wait far longer to obtain their visas.

Despite these flaws in the EB-5 program, thousands of foreign nationals have made EB-5 investments and successfully relocated to the United States—the advantages of participating in the EB-5 program far outweigh any drawbacks. Three key benefits motivate many foreign nationals to participate in the EB5 investment industry.

Obtaining an EB-5 Visa Can Lead to U.S. Citizenship

Many foreign nationals who make their EB-5 investments are not only interested in securing permanent resident status—after holding their green cards for at least five years, EB-5 investors can file Form N-400 and apply to become citizens of the United States. U.S. citizenship will entitle investors to travel outside the country without restrictions, vote, and obtain U.S. passports.

Investors from Any Country Can Participate

The vast majority of immigration programs have restrictions on what kinds of foreign nationals can apply. In contrast, the EB-5 investment program is truly global and open to foreign nationals from all countries and of any occupation. USCIS is primarily concerned with making sure that each EB-5 investment is legally sourced and generates the 10 required jobs.

Family Members Also Receive Green Cards

The EB-5 program also grants permanent resident status to an EB-5 investor’s immediate family—that is, their spouse and any unmarried children under the age of 21. This benefit is free and does not require the investor to provide any additional capital.

Since the minimum investment amounts for EB-5 projects were lowered on June 22, 2021, there has never been a better time to make an EB-5 investment and enjoy the above rewards. Contact EB5AN for information on open EB-5 investment opportunities.

Making an EB-5 investment is one of the best ways a foreign national can pave the way to permanent immigration to the United States. EB5 investments are relatively straightforward and are open to nationals of any country, as long as they possess the capital means to make an EB-5 investment. However, it’s not quite as easy as funneling capital into a qualifying EB-5 project and relocating permanently to the United States. EB-5 investors do face stringent requirements that shield against fraudulent activity and ensure the EB-5 Immigrant Investor Program benefits the U.S. economy as originally intended by Congress.

Failure to meet the requirements of the EB-5 program generally results in the denial of an investor’s I-526 petition or I-829 petition, depending on where in the EB5 journey the infraction occurs. United States Citizenship and Immigration Services (USCIS) may first issue a request for evidence (RFE), however, if the information in an applicant’s petition is unclear or inconsistent, giving the investor a second chance to clarify their fulfillment of the program requirements. For the most part, an investor can satisfy the requirements by being an honest, good-faith investor using lawfully obtained capital. To avoid becoming entangled in a fraudulent project, investors are encouraged to conduct careful due diligence of any EB-5 project and regional center they consider working with. (Even though the regional center program expired on June 30, 2021, industry experts are confident that it will be reauthorized shortly.)

Minimum Required Investment Amount

The most straightforward EB-5 investment program requirement is the minimum required investment amount. While there is no maximum amount, an investor must commit at least the minimum amount to their EB5 investment project to qualify for the immigration benefits. As of June 22, 2021, the minimum investment amounts are $500,000 for targeted employment area (TEA) projects and $1,000,000 for non-TEA projects.

Eligible New Commercial Enterprise

When Congress drew up the EB-5 program in 1990, they introduced certain conditions on which organizations applicants could funnel their EB-5 investment capital into. New commercial enterprises (NCEs), as they are termed in EB-5 law, must be for-profit entities conducting ongoing lawful business activities. As long as the activities are legal and ongoing, there are few restrictions, although the most popular types of EB-5 projects tend to be real estate development and hotels. The investment object must also have been created after 1990—hence the “new” in “new commercial enterprise”—or, if formed before 1990, must be using the EB5 investment capital to expand or restructure the enterprise.

Alternatively, an EB-5 investor can take the less-traveled route of investing in a troubled business. Congress has defined strict terms for what qualifies as a troubled business—the entity must have been established at least two years prior to the applicant’s EB-5 investment and have suffered a net loss of at least 20% of the entity’s value within the one- to two-year period preceding the investment.

Whether an investor invests in an NCE or a troubled business, they always face the requirement to be involved in the management of the entity. This can turn prospective investors with little managerial experience—or those who simply don’t have the time or desire to manage the business—away from the EB-5 program. However, regional center investors usually work around this requirement by signing on as a limited partner, fulfilling this requirement simply by voting remotely on policy formation decisions.

Job Creation

The EB-5 job creation requirement is arguably the most important to Congress—it’s the primary reason why the EB-5 program is a boon to the U.S. people. Indeed, the EB-5 rules stipulate that to reap the immigration benefits the EB-5 program offers, a foreign national’s investment must fund the creation of at least 10 new jobs for U.S. citizens or permanent residents. The jobs must be held for at least two years. The job creation requirement is somewhat flexible, with those who make an EB5 investment through a regional center presented with a relaxed route to job creation.

Direct EB-5 investors must show the creation of at least 10 new jobs on the payroll of the NCE—and depending on the type of business, hiring 10 full-time employees may not be realistic. This effectively restricts the type of businesses that can qualify as direct EB-5 investment projects. The solution is regional centers, which allow investors to count indirect and induced jobs toward the job creation requirement. Under this model, the NCE’s expenditures on goods and services, as well as the wages its employees spend in the local community, are calculated to determine the job creation impact the EB-5 investment has likely had on the region. A third-party economist using approved job calculation methodology must be hired for this calculation.

Job creation is proven in the I-829 petition—the final petition of an EB-5 investment journey. Investors file the I-829 petition after living in the United States as a conditional permanent resident for two years, and approval of the I-829 petition sees the conditions on the applicant’s permanent resident status removed. In the I-526 petition, investors must simply demonstrate the likelihood of the project to generate the 10 jobs.

The EB-5 Immigrant Investor Program has enjoyed immense popularity for many years and has long been considered one of the best ways to immigrate to the United States. EB-5 investment capital provides U.S. businesses with much-needed funds while enabling foreign nationals to apply for permanent resident status and relocate to the United States with their families. Despite the EB-5 program’s popularity and resounding success, many of the current policies established by United States Citizenship and Immigration Services (USCIS) disfavor the program—the EB-5 investment industry is in dire need of reform.

Given these circumstances, many industry members celebrated the Senate’s confirmation of Ur Jaddou as the new director of USCIS on July 30, 2021. Since Jaddou has extensive experience working in the U.S. immigration system, many believe that she will help solve the issues that plague USCIS and the EB-5 program.

Jaddou’s Background

Prior to her appointment as director of USCIS, Jaddou has served as the agency’s general counsel, majority chief counsel for the U.S. House Judiciary Subcommittee on Immigration and Citizenship, and director of DHS Watch. She was also a deputy assistant secretary at the U.S. State Department.

The Senate’s confirmation of Jaddou’s appointment is especially noteworthy because USCIS has been led by temporary acting directors for many years—surely, a more permanent directorship will result in sorely needed improvements to USCIS and the EB-5 investment industry.

Possible Changes to USCIS Policies

Jaddou has stated that she will work on solving USCIS’s funding issues. The COVID-19 pandemic caused a dramatic decrease in immigration petitions. Since much of USCIS’s budget comes from application fees, it announced a massive furlough scheduled for August 2020. Even though the furlough was ultimately averted thanks to tighter spending policies, USCIS desperately needs to return to solvency.

Perhaps the most important issue affecting the EB5 investment industry is USCIS’s notoriously slow petition processing times, which have caused stagnant visa backlogs for investors from numerous countries. In fact, China has experienced a backlog since May 2015. Given USCIS’s history of inefficiency, Jaddou will certainly have a lot of work to do to expedite the adjudication process for EB-5 applications.

Reactions to Jaddou’s Appointment

Many Republicans have openly expressed their distrust of Jaddou. However, her nomination was supported by numerous Democrats and agencies such as the U.S. Chamber of Commerce and the National Citizenship and Immigration Services Council. Many singled her out as the ideal candidate, citing her experience and promising track record. For example, Department of Homeland Security (DHS) Secretary Alejandro Mayorkas stated that Jaddou will “administer our Nation’s immigration system fairly and justly. As the daughter of hard-working immigrants, Ur understands how immigrant families enrich our country and the challenges they face.”

The United States is famous for its strong democracy and the various rights and freedoms its people enjoy. Nearly half of the world’s countries operate under authoritarian or semi-authoritarian regimes, and many of the countries with democracy face flaws with their political system, which leaves the United States as a shining beacon of hope in the minds of many. Many of those living under the boot of an authoritarian government yearn for a life of freedom as offered by the United States, and that desire fuels a large portion of EB-5 investments. While EB-5 Immigrant Investor Program stakeholders tend to focus on economic and practical benefits of a life in the United States, the freedom and rights of U.S. democracy are an equally important consideration behind many EB5 investments.

Let’s take a look through some of the most important freedoms and rights in the United States.

Freedom of Speech

Freedom of speech is guaranteed by the First Amendment of the U.S. Constitution and is arguably the most important freedom to U.S. democracy. In many countries, individuals and journalists alike can be punished by the government for criticizing government policy or (in)action, sometimes facing incarceration or even death. The United States is different. If a foreign national makes a successful EB-5 investment, they can enjoy the freedom to say anything they wish without fear of governmental repercussions. U.S. media has the same right to criticize the government with impunity and does so regularly.

Freedom of Religion

Though Christianity of various denominations is the most commonly practiced religion in the United States, there is no official state religion, and the nation is home to practitioners of all sorts of religions. Many Jewish people, Muslims, Hindus, Buddhists, agnostics, atheists, and others live peacefully in the United States, enjoying the right to practice their faith freely and preach it to others.

The Bill of Rights goes further than just enshrining religious freedom—it also prescribes the separation of church and state, prohibiting the U.S. government from establishing a state religion. In various countries around the world, religious minorities can find themselves persecuted and oppressed and could be arrested or killed for practicing the wrong religion or not practicing the state religion. Those desiring religious freedom should consider, if they have the means, making an EB5 investment as a relatively quick and easy pathway to permanent residency in the United States.

Right to Peaceably Assemble

The right to vote in elections is reserved only for citizens of the United States, in line with most other countries. However, in the United States, voting isn’t the only way to participate in democracy. Unlike in many countries, where governments crack down harshly on peaceful protesters, throwing them in jail indiscriminately or even killing them, the United States celebrates peaceful protest as a powerful means to positive change. Throughout U.S. history are numerous cases of peaceful protest inspiring significant policy changes, and everyone in the United States—citizen or not—is welcome to participate in or organize peaceful protests.

Similarly, U.S. government representatives answer to all constituents, even those without citizenship, so even temporary residents should feel free to reach out to their representative with any concerns. The U.S. political system is ever-evolving to better meet the needs of its diverse population, and everyone has a voice in this system. While the economic landscape of the United States is always a nice draw, the freedom to participate in politics is an equally legitimate motivation to make an EB-5 investment.

A Strong, Fair Legal System

The U.S. legal system prides itself on its fairness, guaranteeing rights even to those who are charged with a crime. Under U.S. law, anyone charged with a crime is considered innocent until proven guilty, and no one can be convicted and sentenced without a fair legal process. Those who do not have the means to hire a criminal lawyer will be provided one for free by the state, allowing everyone access to professional legal assistance in arguing their case. Criminal verdicts are determined by a jury of a defendant’s peers, not the government, ensuring maximal fairness.

People making EB5 investments to come to the United States probably won’t ever have to exercise these rights, but knowing a strong, fair legal system is in place to deliver justice and protect those who live in the United States may be a comforting thought for many, especially those from countries with corrupt justice systems that bow to the government.

Strong Civil Courts

The U.S. legal system extends beyond criminal justice. Civil courts across the United States settle disputes between individuals, businesses, institutions, and more, affording involved parties the same rights as in criminal justice cases. This system allows entities to push back against actions that have caused damages, whether monetary, psychological, or otherwise, and offers individuals or small businesses recourse to fight huge corporations or institutions. Though some may joke about the amount of litigation filed in U.S. courts, in truth, civil courts help protect individuals and small entities from abuse by larger, more influential entities. In fact, EB-5 investment participants often make use of this option when faced with abuse from United States Citizenship and Immigration Services (USCIS), such as in the famous case of Zhang vs. UCSIS.

America: Land of the Free

For those from authoritarian countries who must bow down to the government in all aspects of their lives, the United States can seem like paradise. The strong economy of the United States is only one part of the story—the rights and freedoms guaranteed by the Constitution are the underpinnings of the nation’s success. With an EB5 investment, foreign nationals the world over can claim a slice of the American life, enjoying the rights and freedoms that make the United States so great.

One of the beautiful things about the EB-5 Immigrant Investor Program is its flexibility. Foreign nationals from any country can participate in the residency-by-investment program, and their EB-5 investment capital can come from almost any source, as long as it is legal. This flexibility opens the program up to many foreign nationals dreaming of a life in the United States for themselves and their immediate family members.

Sourcing one’s EB-5 investment funds is often among the most complicated and time-consuming aspects of the EB-5 process. Newcomers to the program are often unsure as to where they may source their capital from. Below are five of the most common sources of EB5 investment capital and tips on demonstrating their legal sources to United States Citizenship and Immigration Services (USCIS).

EB-5 Investment Capital from Employment

Many foreign nationals who make an EB-5 investment earn their capital through employment. The employment may be with any company and in any sector, as long as it is legal. Depending on an investor’s employment situation, proving the lawful source of their employment income may necessitate collecting documents from multiple companies, sometimes dating back several years. In countries with less rigorous record-keeping standards than the United States, necessary documents may not always be available—but an experienced EB-5 immigration attorney can typically advise investors of a workaround.

Various documents can be used to prove the legal sources of an EB5 investment earned through employment, including bank statements, paystubs, and a letter from the respective employer confirming the position and salary. But proof of employment alone isn’t enough—an EB-5 investor must also demonstrate that they have paid all applicable taxes on their income by supplying their tax returns.

EB-5 Investment Capital from the Sale of Property

Whether they inherited a property or bought it and have sold it for a large capital gain, EB-5 investors commonly use the sale of property to fund their EB5 investment. To prove the lawful sources of such capital, the sale agreement is obviously necessary, as well as bank statements showing the funds being deposited in your account from the buyer. But that’s not all—USCIS wants to see that an EB-5 investor originally obtained the property legally. This may entail including the initial purchase agreement, along with proof of the legal sources for the capital used to purchase the property, or inheritance papers. Then, of course, an EB-5 investor must show they paid any property taxes due on the property.

In some cases, an investor owns a property for a significant period of time before selling it, making it difficult to trace the documents from the time of initial purchase. Under such circumstances, USCIS may be satisfied with a note explaining why obtaining these documents is impossible, backed up by statements from local experts. An EB-5 immigration lawyer can guide EB-5 investors through the best solution for their situation.

EB-5 Investment Capital from Loans

Loans are also an acceptable source of EB5 investment capital, whether they come from an institutional lender or an individual. However, securing a loan from an institutional lender is always the safer bet, as USCIS does not require documentation on how major banks sourced their capital for the loan. If contracting a loan from an individual, an EB-5 investor must include evidence showing how the individual acquired the amount. Another important condition to note is that a loan from a friend should be at market rate—USCIS is prone to deny loans significantly below the market average.

To be on the safe side, it’s also recommended to secure the full amount of the loan with the EB-5 investor’s personal assets. Courts have ruled that unsecured loans are indeed valid for EB-5 investment purposes, but with USCIS’s tendency to alter its interpretations on a whim, it’s far safer to use a secured loan, if possible. Again, experienced EB-5 counsel can help determine the best path for any individual EB-5 investor.

EB-5 Investment Capital from Gifts

Though it may come as a surprise to some, gifts are a common and valid source of EB-5 investment funds, particularly from parents to children. Most young EB-5 investors come to the program by way of a gift from their parents, allowing them to work toward U.S. permanent residency as they complete their studies in the United States.

While a gift is a perfectly valid source of EB5 investment capital, investors must still prove the legality of the gift. First, they must provide a written document detailing the gift, with the donor stating in no unclear terms that the recipient has no obligation to repay the amount. If a gift tax is applicable, as in some countries, such as South Korea, the investor must also include records of the tax having been paid.

However, the bureaucracy doesn’t stop there—USCIS wants to confirm that the donor obtained the capital from lawful sources. Therefore, the donor must agree to divulge comprehensive information on the sources of their funds, just as a principal investor would do for employment income. Additionally, if the donor is not an immediate relative, it’s always good practice to include an explanation as to why the donor was willing to gift such a large amount to the EB-5 investor.

EB-5 Investment Capital from Inheritance

Like gifts, inheritance may be used as a source for an EB-5 investment, but the documentation for inherited EB5 investment capital can be tricky. Naturally, the relation of the investor to the deceased must be demonstrated, as well as a copy of the will or other evidence of their right to the inheritance. If the applicable country or state levies inheritance taxes, proof of payment must also be included in the investor’s I-526 petition.

Where inheritance source of funds gets difficult is in demonstrating the legal source of the deceased’s capital. In some cases, this can entail tracing decades of documents, some of which may be impossible to obtain. Explanations attesting to the impossibility to obtain such documents and affidavits asserting the source of funds may be acceptable alternatives—as always, an EB-5 immigration lawyer can provide tailored advice for any investor’s situation.

Consult with an EB-5 Immigration Attorney

This is a non-exhaustive list showcasing merely the most common sources of EB5 investment capital. Investors can and do use an array of other sources to fund their EB-5 investments, and as long as they can prove the money came into their possession legally, anything goes. It is also, of course, possible to use funds from several different sources.

With a complex program like the EB-5 program, it’s important to remember that there is no one-size-fits-all solution, and all investors have unique situations. That’s why it’s imperative to retain an experienced EB-5 immigration attorney who can guide you through the best sources to use for your EB-5 investment.

Many foreign nationals want to relocate to the United States and enjoy the country’s strong economy, political stability, high standard of living, and delightful culture. Perhaps the best way to obtain permanent resident status in the United States is to participate in the EB-5 Immigrant Investor Program. The EB-5 program, which has been active since 1990, allows foreign nationals to obtain green cards by investing in qualifying U.S. enterprises. EB-5 investments stimulate the U.S. economy by creating a source of reliable, legal funds for businesses in need. Moreover, the successful, high-net-worth individuals who participate in the EB-5 program become valuable assets to the country. After gaining their green cards, EB-5 investors may eventually apply to become U.S. citizens.

If you are interested in making an EB-5 investment to obtain permanent resident status, keep in mind that United States Citizenship and Immigration Services (USCIS) sets out several requirements for EB-5 investors. All EB-5 investors must be in a position to make the EB5 investment and cover the associated fees. Further, they must be able to invest funds that remain at risk and create the required number of jobs. USCIS also requires investors to provide exhaustive documentation proving that their funds were sourced legally—if investors cannot submit the needed proof, then USCIS will deny their visa petitions.

Additionally, EB5 investments can be made either directly or through a USCIS-approved regional center. In the direct investment model, investors can only count directly created jobs given to full-time workers. Typically, individuals who make a direct EB5 investment are much more involved in the day-to-day operations of the business. In contrast, EB-5 investments made through regional centers allow investors to count direct, indirect, and induced jobs, thus making it easier to meet the employment creation criteria.

In light of the complexity of the EB-5 program and the many different ways to make an EB-5 investment, interested individuals would do well to enlist the services of an immigration attorney and EB-5 consultants. The following overview shows how individuals can obtain permanent resident status through an EB-5 investment.

1. Identify a Suitable EB-5 Investment Opportunity

Investors can choose between a direct investment or a regional center project. Note that the minimum required investment amount is $1,000,000. However, projects located in targeted employment areas (TEAs) have a reduced minimum required amount of only $500,000. TEAs either have high unemployment rates or are rural. EB-5 investors should choose projects with promising job creation potential.

2. Transfer the Investment Funds

Before transferring the funds to the project’s account, EB-5 investors must make sure that they are ready to document the sources of their funds. USCIS will ask them to trace the invested funds back to their sources in great detail. As previously mentioned, the funds must remain at risk once they are invested.

3. Submit Form I-526

Once an investor has transferred the funds to the project’s account and made sure that they are in compliance with all USCIS regulations, it is time to file Form I-526, Immigrant Petition by Alien Investor. In this petition, investors submit evidence that they have followed all USCIS regulations governing the source of funds, investment amounts, job creation, and other factors. Note that the EB-5 investment must be made before the filing of Form I-526. Typically, an investor’s immigration attorney files the I-526 petition for them. The adjudication process for most I-526 petitions may take between two to five years, depending on the investor’s country of origin.

4. Obtain Conditional Permanent Residence

Once USCIS approves the I-526 petition, an investor can apply for conditional permanent resident status by sending Form DS-260 to the National Visa Center. Investors who already have an immigrant visa must instead submit Form I-845. This conditional permanent resident status will last for two years.

5. Submit Form I-829

Within the last 90 days of their conditional permanent residency, investors must file Form I-829, Petition by Investor to Remove Conditions on Permanent Resident Status. In this petition, investors submit further proof that they have fulfilled all USCIS criteria. Once the form is approved, the investor and their immediate family receive permanent resident status. In five years, they will be eligible to apply for U.S. citizenship.

The EB-5 visa process can be complex, but investors who obtain permanent residency always find that their efforts were worthwhile. Further, EB-5 professionals can provide you with invaluable guidance and simplify the process significantly.