The EB-5 Immigrant Investor Program is one of the most direct pathways to obtaining a green card in the United States. Through this initiative, the American government aims to stimulate economic growth by encouraging foreign investments. Foreign investors, on the other hand, benefit by obtaining Green Cards for themselves and their immediate family members (spouse and unmarried children under 21 years of age.)

After deciding to take the EB-5 route to obtain permanent residence in the U.S., the next crucial step is to select a feasible investment project, considering your financial capital and other resources.

This post will take you through the different investment options available to potential investors and how to select the best EB-5 projects to invest in.

Direct Investments vs. Regional Center Investments

EB-5 investors have two major investment options, each with unique requirements. This section will explain the nuances between the two options, highlighting their pros and cons and the category of investors they are best suited for.

Direct Investments

For this type of investment, investors are legally required to directly invest capital of at least $1,050,000 in a business, formally known as a New Commercial Enterprise (NCE). However, when the project is located in one of a targeted employment area (TEA), the investment threshold is decreased to $800,000. Additionally, the investment should directly result in the creation of 10 full-time jobs, each lasting for at least two years.

The most attractive characteristic of these EB-5 projects is control: the investor operates independently and is directly involved with the project’s development. In most cases, they also stand to gain high returns on investments because of the high risk/high reward principle in investment.

It is important to note that the law does not allow multiple individuals to pool funds to raise capital for this type of project. Therefore, only one person is expected to provide the stipulated minimum investment threshold. Also, direct investments are high-risk, as their success solely depends on the investor’s ability to manage their enterprise.

In other words, the direct investment model is best suited for investors who desire complete control of their investments but have a solid plan to recruit at least 10 people for two years and $800,000 to put away for investment purposes.

Regional Center Investments

These EB-5 projects are sponsored by regional centers, which are essentially economic entities assigned by the United States Citizenship and Immigration Services (USCIS) to facilitate EB-5 project investments. Unlike the direct investment plan, investments through regional centers allow multiple investors to pool resources to fund a single project. Real estate development projects are the most common project type in this category.

While the minimum investment thresholds are the same, regional center-sponsored investment projects are generally safer for immigration purposes.

Furthermore, the regional center handles most of the complicated paperwork, and the job creation requirements for regional center EB-5 projects are less stringent. That is, the 10 full-time jobs could be direct, indirect, or induced, if said jobs have a positive economic impact on the community.

On the downside, investors have little to no control over their investments, making this option best suited for investors who prefer to maintain a passive presence in the day-to-day management of the project.

How to Select the Best EB-5 Project

There is no one-size-fits-all approach to selecting EB-5 projects. Instead, investors need to do a holistic assessment of their circumstances, identify their available resources, and clearly define the immigration plans and investment goals they aim to achieve.

Below, we have provided four distinct factors potential investors must consider to ensure they are well-informed when deciding on an EB-5 project.

Risk Assessment

As with any other investment, the EB-5 program comes with varying levels of risks, depending on the investment project being considered, making risk assessment a core aspect of the EB-5 project selection process. The main objective here is to be aware of the type and level of risk you are taking on and to be sure you are comfortable taking such risk.

To do this, investors must first consider the economic climate of their project location. Data on the demand rate for your enterprise’s offerings can be used to assess risk levels and provide valuable insight into the project’s prospects.

Along with market data, potential investors need to apply due diligence when choosing a project developer. EB-5 investors should look out for experienced developers who have a track record of executing successful EB-5 projects while mitigating losses. It is also important that the developers are financially stable enough to support the project if needed and transparent about every step of the process.

Foreign nationals who choose to invest through regional center sponsors must ensure that the regional center is reputable with a successful track record.

Financial Viability

In analyzing the financial viability of EB-5 projects, it is crucial to identify which should be prioritized: return on investments or securing permanent residency in the U.S., the latter typically being the most important factor. That being said, most investors aim to balance the two objectives rather than forfeit one benefit for the other.

EB5 investors must operate with a sound business plan that aligns with their investment goals and immigration plans. Such an investment structure should include details such as total capital raised and total estimated project cost, potential revenue streams and expenditures, feasible strategies for ensuring good returns on investment, and a well-outlined exit strategy.

An analysis of the above information, alongside reliable data on risk assessment, allows potential investors to decide whether a project is best suited for them.

Legal Compliance

After satisfying the job creation requirements and minimum investment threshold provisions, investors are still expected to adhere to other general compliance laws.

USCIS requires investors to tender legal proof that their investment funds were obtained legitimately. Documentation, such as financial and tax statements or business ownership records, is needed. Furthermore, investors must only invest in New Commercial Enterprises (NCEs) where there is a risk of loss.

Investors must adhere to immigration compliance laws on the visa application process, ensuring complete documents are submitted on time. Lastly, investors must verify that their investments align with the U.S. securities laws since EB-5 investments can be classified as securities.

Professional Guidance

Given the complexities of investing in an EB-5 project, this might be the most essential step in selecting a project to invest in. Consulting an immigration lawyer specializing in EB-5 project investments provides investors with expert guidance, helping them avoid costly mistakes that may jeopardize their immigration process.

It is also advisable to contract a financial advisor who can provide professional oversight on the project’s capital structure and design viable ROI and exit strategies for the business. A competent financial advisor can also evaluate the job creation estimates and the overall sustainability of your proposed project business plan.

Finally, due diligence requires that investors confirm any data or information provided by regional centers and project developers, especially regarding their level of expertise and industry success. In most cases, investors consult third-party specialists who ensure their interests are guarded from a professional standpoint.

Select the Best EB-5 Project with EB5AN

Choosing an EB-5 investment project is very relative to the investor’s unique situation. Therefore, potential investors will benefit from a multifaceted assessment of a proposed project’s risk and financial viability, adherence to necessary regulations, and professional assistance.

EB5AN has helped more than 2,300 families from 60 countries relocate to the United States as lawful permanent residents. Our expert team has more than a decade of experience, and offers clients first-rate, low-risk EB-5 regional center projects with 100% USCIS project approval rate to date.

Start your EB-5 journey today by scheduling a free consultation with our team to get expert guidance on your investment options.

An EB-5 project refers to a new commercial enterprise (NCE) that is funded through the EB-5 Immigrant Investor Program. Established in 1990, this program enables foreign investors to obtain a Green Card by investing a minimum amount of capital in a qualifying new commercial enterprise in the U.S.

To qualify for the EB-5 program, investors must invest $800,000 or $1,050,000, depending on the project’s location. The lower investment amount applies to projects located in targeted employment areas (TEAs), which are high-unemployment or rural areas. In addition to the minimum investment requirement, the project must create or preserve at least 10 full-time jobs for eligible U.S. workers.

EB-5 projects can take various forms, such as real estate developments, infrastructure projects, and manufacturing ventures. The majority of EB-5 projects are sponsored by USCIS-designated regional centers.

But what happens when an EB-5 project fails? In this article, we’ll explore the immigration and financial risks investors encounter if a project fails, based on their position in the EB-5 application process.

Failure of an EB-5 Project

While there are numerous reasons why an EB-5 project may fail, it can have severe repercussions for investors. Naturally, an EB-5 applicant’s primary concern is how project failure might affect their EB-5 application. EB-5 investors would also want to know whether they will be able to reimburse the original investment amount.

The primary factor influencing what happens after an EB-5 project fails is whether the applicant invested directly or via a regional center. When an investor uses the funds to form or purchase a business directly, the answer varies depending on the business structure and the investor’s plans for dealing with a potential failure, among other factors. Investors who chose regional centers, on the other hand, rely heavily on the investment agreement.

This article will focus on failed EB-5 projects involving regional centers, as that is the most popular investment option among foreign investors.

Return of Investment with a Failed EB-5 Project

Even though favorable provisions may help investors get another shot at the EB-5 program, there is no guarantee that their initial investment will be returned.

The circumstances surrounding the failure of an EB-5 project, as well as the terms of the investment agreement, determine the potential outcomes for investors. Investors are typically faced with the possibility of losing all or a portion of their investment or redeploying it. Here are a few possible scenarios:

• Loss of Investment: If the EB-5 project fails and is unable to repay its debts or return investment capital, investors risk losing their entire investment. This may occur if the project encounters financial difficulties, such as cost overruns, lack of demand for the project’s products/services, or mismanagement.
• Partial Recovery: In some cases, investors may be able to recoup some of their investment. However, the amount recovered is often much less than the original investment, and investors may still suffer losses. Some EB-5 investors may be able to recover their losses following the denial of Form I-526E, as most regional centers keep the funds invested in escrow while Form I-526E is pending approval.
• Redeployment: According to the EB-5 Reform and Integrity Act of 2022, regional centers can redeploy EB-5 investment funds “anywhere within the United States.” However, the capital must “remain at risk” after EB-5 redeployment, and investors’ capital “is expected to remain invested for not less than two years.” Investing redeployed funds in purely financial activities, such as purchasing financial instruments on the secondary market, does not constitute redeployment under this Act.
• Legal Recourse: If the EB-5 project fails due to fraud, misrepresentation, or other illegal activity, investors may be able to recover their investment by seeking restitution from the parties responsible.

Impact of a Failed EB-5 Project on Visa Status

The timing of an EB-5 project’s failure may determine how it affects investors’ visa status. Let’s look at some scenarios below.

Failure Before I-526E Approval

If a project fails before the I-526E petition is approved, the investors will most likely be unable to meet the EB-5 program’s requirements, particularly the need to maintain the investment during the conditional residence period and create 10 or more jobs.

However, if an EB-5 project is only partially completed before failing, a new developer or receiver can take over and complete the project.

Furthermore, assuming there are no significant changes to the project, the investors could be able to complete their immigration process. If the EB-5 project fails completely, the only viable option is to redeploy the reimbursed amount (if any) and resubmit the EB-5 application with an investment in another project.

Failure After I-526E, but Before I-829

It is important to note that if a project fails after Form I-526E approval but before Form I-829 (Petition by Investor to Remove Conditions on Permanent Resident Status) approval, the conditions may still be successfully removed, depending on the timing and ability to demonstrate sufficient job creation.

According to USCIS Policy Manual, if the jobs were created and maintained for the required period, even if they no longer exist at the time of the I-829 filing, the investors should be okay concerning their EB-5 application. It should be noted that the I-829 petition must be filed 90 days before the expiry of the conditional residence period.

Failure After I-829 Approval

EB-5 investors who successfully removed conditions on their Green Cards will not be impacted by the success or failure of the project’s compliance with USCIS requirements.

Work with EB5AN to Minimize Risks

The failure of an EB-5 project can have unfavorable consequences for everyone involved. Investors risk losing their investments and being unable to obtain residency permits. So, before investing in an EB-5 project, investors must conduct thorough due diligence and seek professional advice to reduce their risk exposure.

EB5AN has helped more than 2,300 families from 60 countries relocate to the United States as lawful permanent residents. Our expert team has more than a decade of experience, and offers clients first-rate, low-risk EB-5 regional center projects with 100% USCIS project approval rate to date.

If you are considering investing, book a one-on-one call with our team today to learn more about the risk factors associated with EB-5 investments and receive support throughout your entire EB-5 process.

Your choice of EB-5 service providers affects the prospect of getting an EB-5 visa—and ultimately a U.S. Green Card.

The U.S. government’s approval rate for EB-5 visa applications varies depending on several factors, with an average of about 75% to over 80%. In the third quarter of FY2023, the average approval rate of an I-526 petition was 71.7%. Despite a high success rate, the chances of rejection remain possible if you aren’t fully prepared.

For example, you won’t obtain an EB-5 visa if you can’t prove the legitimacy of your funds and/or income. Remember that the United States Citizenship and Immigration Services (USCIS) requires thorough documentation of a person’s financial capacity.

Another reason for a rejected EB-5 visa is being unable to convince the USCIS that your investment will create jobs. Your EB-5 visa application must show that your investment in a new commercial enterprise can “create or preserve 10 permanent full-time jobs.”

In addition, EB-5 immigrant investors should have clean criminal and civil records. If you have legal cases such as a pending court trial in the U.S., you may find it hard to acquire an EB-5 visa.

By knowing which service providers can help you during your application process, you can increase your chances of EB-5 visa approval.

In this article, we will take a look at some key EB-5 professionals and how they can help investors through their immigration process.

Who Are the Key Service Providers for Your EB-5 Visa Process?

The essential EB-5 service providers are immigration attorneys, EB-5 regional centers, and a reliable CPA or financial advisor.

Legal counsel could be the most important one of all. One example involves Lorrie Rojas’ successful EB-5 visa application through a hotel project investment.

Rojas, a Filipino national, describes the selection of an immigration attorney as one of the “most daunting tasks” for her EB-5 visa journey. Her eventual choice spelled the difference for a smooth application process, and thanks to her attorney’s diligence, Rojas’ Form I-526 was approved without any delays.

Aside from legal counsel, foreign nationals must also make a choice between direct or regional center projects at the investment stage. Direct EB-5 investors will need to consult with additional service providers like an EB-5 economist and business plan writer. Investors who choose a reliable regional center, however, do not need to hire such professionals separately.

When looking for a qualified EB-5 regional center, investors should pay attention to how easy it is to communicate with them, aside from their track record of success.

For example, a Sri Lankan national invested in EB5AN’s Twin Lakes Georgia EB-5 project. According to him, the project’s EB-5 team became a primary factor for the successful investment, as they worked directly with the applicant.

Choose an Experienced and Qualified EB-5 Immigration Attorney

You wouldn’t hire a tax attorney to handle your personal injury claim. The same concept applies to the EB-5 visa process.

While the USCIS doesn’t require legal representation, there are plenty of reasons to hire the right EB5 visa attorney. Lowering the risks of USCIS issuing a request for evidence (RFE) is one of them.

An RFE issuance happens at the discretion of the USCIS. EB-5 visa applicants receive RFEs when they fail to provide enough details for an EB-5 investment. In other words, filing a well-prepared, complete initial application with the help of an attorney can accelerate your EB-5 visa process.

However, the USCIS may reject an application even without prior RFE issuance, which is a bigger reason to have legal representation and avoid this outcome.

Immigration attorney Ahmed Khan, an EB5AN partner, recommends immigration lawyers with at least five years of experience in working with EB-5 visa applicants.

You should also choose an attorney with updated knowledge of immigration law and specific EB-5 regulations. An example is their familiarity with the Reform and Integrity Act of 2022 (RIA), updated USCIS language and guidelines, and recent industry data suggesting upcoming changes in the way set-aside categories may benefit EB-5 investors.

Pick the Right USCIS-Designated EB-5 Regional Center

To make an indirect EB-5 investment in the U.S.—which entails less day-to-day involvement with the management of the EB-5 business and easier job creation requirements to fulfill—a government-authorized regional center with a successful track record is your best choice.

The USCIS defines an EB-5 regional center as a public or private economic entity in the U.S. These regional centers promote economic growth in the country by participating in the EB-5 Immigrant Investor Program to pool and manage investment capital.

Prospective investors can find a full list of approved EB-5 regional centers by state on the USCIS website to verify an EB-5 regional center’s designation status. Take note that it’s normal for an EB-5 regional center to operate in more than one location.

A regional center that has vast experience with international investors is a valuable EB-5 service provider. By choosing a regional center with a strong EB-5 team, investors can do their due diligence from overseas, and eliminate the need to provide additional documents to USCIS, such as a detailed business plan and economic analysis of the EB-5 project they’re investing in.

Find a Reputable Financial Advisor

Whether you choose a direct EB-5 investment or via a regional center, you should find a trustworthy financial advisor to help with several steps of your application process.

A third-party investment advisor, CPA, or financial advisor can help prospective EB-5 investors select the right project and perform due diligence on project offerings and financial projections. They can assist in tracking and preparing financial documents to meet source of funds requirements.

While other key service providers such as EB-5 business plan writers and fund managers are typically involved in a regional center project’s structure, investors can independently seek assistance with accounting, financial planning, and tax planning for added support.

How to Start the Process

Keep in mind that a legitimate EB-5 service provider won’t promise that you can acquire U.S. permanent residency with an EB-5 visa application alone—it is a complex process with several requirements applicants must fulfill.

However, choosing the right team to support you throughout your application can significantly increase your chances of success.

EB5AN has helped more than 2,300 families from 60 countries relocate to the United States as lawful permanent residents. Our expert team has more than a decade of experience, and offers clients first-rate, low-risk EB-5 regional center projects with 100% USCIS project approval rate to date.

Schedule a free consultation today to meet our team and find out more about how to navigate the requirements of the EB-5 regional center program.

After years of consistent growth and stability, the tech industry faced a significant downturn in 2022, putting the livelihoods of countless tech professionals at risk in a situation the Economist termed “the sack of Silicon Valley.”

The second half of 2022 saw a wave of job cuts across the tech industry, culminating in the loss of 120,000 positions, 24,000 of which occurred in November alone.

The rapid nature of these layoffs left many tech workers in a state of shock and concern. However, those on H-1B specialty occupation visas faced an even greater challenge, as their job loss would also threaten their immigration status and their continued residence and employment in the United States. The tech industry, a significant sponsor of work visas, has seen its share of foreign workers grow to 25% by 2007.

As of 2024, H-1B is still a popular nonimmigrant visa category, which comes with a set of challenges. For H-1B visa holders hoping to stay in the U.S. long term, seeking a Green Card through the EB-5 visa program may present the most direct path forward.

In this article, we will delve into the experiences of H-1B visa holders and explore potential solutions to their U.S. immigration challenges.

Visa Constraints for H-1B Tech Workers

At the peak of the 2022 tech layoffs, a Twitter (now X) staff member, who remained after the job cuts, shared with the New Yorker, “The anticipation [to find out whether they would be laid off] wasn’t so stressful for me. I think it was for a lot of people, especially people who are on a work visa …. I probably would have started looking for other jobs two or three months ago. Finding another job is a lot of effort.”

In a message to his company about significant layoffs, Meta’s CEO, Mark Zuckerberg, echoed this sentiment, stating that the situation “is especially difficult if you’re here on a visa.”

These comments highlight the precarious situation H-1B visa holders found themselves in, at risk of job loss and potential removal from the United States.

The requirements of the H-1B visa mandate that holders must be employed to maintain their legal status in the U.S. If an H-1B employee is dismissed, their employer is obligated to inform the United States Citizenship and Immigration Services (USCIS) without delay.

From the moment of their termination, H-1B workers only have 60 days to secure a new qualifying employment opportunity before their visa status is revoked, which means they must leave the U.S. Normally, this limited window would already pose a significant challenge for tech workers in finding new employment to safeguard their H-1B visa status. However, with the tech sector’s instability and the scarcity of available positions, securing another role in the industry on such limited timelines appears almost impossible.

Undoubtedly, being forced to leave the United States following an unexpected job termination—potentially after years of residence—can severely disrupt the professional and personal lives of H-1B visa holders.

An H-1B visa nonimmigrant worker, who lost their job in 2008, shared, “I don’t think there’s any immigrant that comes to America and gets a highly competitive job expecting to be let go from it and have to leave the county, their apartment, their lives, their girlfriends and boyfriends and friends and kids and all of the things, at the flip of a switch.”

Luckily, H-1B workers can avoid this situation by transitioning to the EB-5 Immigrant Investor Program to secure permanent resident status.

Transitioning from H-1B to EB-5

Many H-1B visa holders have found a successful pathway to permanent residence through the EB-5 program. A key advantage of the EB-5 visa is securing a Green Card that is independent of employment status.

The EB-5 program allows foreign nationals to obtain permanent resident status by investing in a qualifying new commercial enterprise, often in real estate development, and creating 10 jobs with their foreign investment. The program requires a minimum investment of $800,000 in projects situated in designated targeted employment areas.

An accredited investor can choose to make a direct investment in a new or existing business, or invest in a regional center sponsored EB-5 project. There are different requirements for these two types of EB-5 investments, especially in terms of job creation and the investor’s involvement with the day-to-day management of the business.

For H-1B workers facing or at risk of job loss, the EB-5 visa offers a fast solution for adjustment of status. Upon investing, applicants of the EB-5 visa can concurrently file Form I-526E, initiating the Green Card petition, and Form I-485, the adjustment of status application for those on non-immigrant visas.

By taking this step, H-1B visa holders transitioning through an EB-5 investment can achieve a “pending” immigration status, permitting them to reside and work in the U.S. while their I-526E petition is under review. This effectively grants them the privileges of permanent residency ahead of formally receiving their Green Card.

An EB-5 visa also grants Green Cards to the principal applicant’s immediate family members (spouse and unmarried children under the age of 21).

Taking the First Step

H-1B visa holders who want to maintain their professional and personal pursuits in the United States can leverage the EB-5 visa pathway. To start the transition, it is best to consult with an immigration attorney experienced in both H-1B and EB-5 visa matters.

To minimize both financial and immigration risks, prospective investors should also work with industry experts to guide them through key steps of the application process like project selection and proof of source of funds.

Considering the limited 60-day window for H-1B workers who face layoffs, EB5AN offers the chance to start with a partial investment. Participants can start by investing a portion of the $800,000 minimum, proceed to file the I-526E and I-485 petitions, and fulfill the total investment requirement later on.

This approach enables H-1B investors to swiftly adjust their immigration status and continue their life and work in the United States.

For further details on transitioning from an H-1B to an EB-5 visa, required documents, and the visa application process, book a free one-on-one call with our team today.

Every foreign individual looking to permanently relocate to and live in the United States is required to submit an application for an immigrant visa to the United States Citizenship and Immigration Services (USCIS). This application is digitally filed using Form DS-260, Immigrant Visa Electronic Application.

This article provides detailed insights into the DS-260, highlighting its importance for the EB-5 Immigrant Investor Program.

The EB-5 Immigrant Investor Program

The EB-5 program was initiated by Congress in 1990 with the aim of boosting the U.S. economy through foreign investments into American businesses, known as new commercial enterprises (NCEs), while also generating employment opportunities for American workers. In return, foreign investors, along with their immediate family members (spouses and unmarried children under the age of 21) gain eligibility for conditional Green Cards. These Green Cards permit them to live and work in the United States. This particular status is effective for two years and can transition into permanent Green Cards, if the investor fulfills all the requirements of the program.

Eligibility Criteria for EB-5 Investors

For foreign nationals aiming to gain permanent residency in the United States, the EB-5 program offers the most direct path. To qualify, an investor must invest a specified minimum amount into a new commercial enterprise (NCE) that generates employment for American workers. This minimum investment is $800,000 for projects located in a targeted employment area (TEA) or $1,050,000 for those outside of a TEA.

A TEA is defined either as a rural area with fewer than 20,000 residents or an urban area where unemployment rates are at least 150% above the national average.

The investment must lead to the creation of at least ten full-time positions for U.S. employees.

Investment Options within the EB-5 Program

EB5 investors have the option to select from two different investment models: investing directly in a new commercial enterprise (NCE) or pooling their resources with other EB5 investors in a project sponsored by a regional center. Regional centers are economic units designated by USCIS, tasked with overseeing EB5 investments in various projects within the industry and ensuring compliance with USCIS standards.

The direct investment model appeals to investors desiring an active role in the NCE’s daily operations and key decision-making processes. This model is mostly suited for businesses in the retail, wholesale trade, services, manufacturing, technology, and agriculture sectors.

On the other hand, EB-5 regional center projects typically involve real estate developments. This model has been the favored choice among EB5 investors.

To initiate the process toward permanent residency, a foreign investor must first select an eligible EB5 project and invest the necessary capital. Then, they can proceed to submit Form I-526E, Immigrant Petition by Regional Center Investor (or Form I-526 for those opting for the direct investment approach), to USCIS.

Criteria for Submitting Forms I-526 and I-526E

When submitting Form I-526E or I-526, investors are required to prove the following points:

• They have committed the necessary minimum investment in an EB-5 project that adheres to USCIS guidelines, either through direct investment or via a designated regional center.
• If their investment is the minimum $800,000, it is in a project situated within a Targeted Employment Area (TEA).
• The investment will lead to the creation of the requisite number of jobs.
• The funds for the investment have been acquired through legal means. Acceptable sources of funds include earnings, dividends, gifts from relatives or acquaintances, inheritances, revenue from selling property, and the sale of shares.

Upon approval of the I-526E petition, USCIS forwards it to the National Visa Center (NVC), which then assigns a case number and requests payment of fees from the EB-5 investor. After that, the NVC asks the investor and each dependent to complete the DS-260 application form and provide the necessary documents. More information about DS-260 filing is available below.

After approval, the investor and their family members are granted conditional permanent residency, allowing them to enter the United States.

Transitioning to a Permanent EB-5 Green Card

The conditional Green Card remains valid for two years. To remove the conditions on their Green Cards and secure unconditional permanent resident status, the EB5 investor along with their family members are required to submit Form I-829, Petition by Investor to Remove Conditions on Permanent Resident Status, within the 90-day period before the card’s expiration. This marks the end of the EB-5 immigration process.

When submitting Form I-829, the immigrant investor needs to prove the fulfillment of all EB-5 program requirements, which include:

• Verifying the existence of the new commercial enterprise (NCE) throughout the investor’s two-year conditional residency.
• Demonstrating that the required minimum investment amount was made.
• Confirming the creation of ten full-time jobs.

The petitioner’s conditional residency status is extended during the processing of the I-829 form. Following approval, the investor and their family members are granted unconditional permanent residency in the United States.

Understanding the Role of DS-260

The DS-260 form serves as the immigrant visa application for foreign nationals planning to permanently relocate to the United States, including EB-5 investors residing overseas. (The DS-230 form was previously utilized for this purpose.) Approval of this application grants the applicant an EB5 visa, enabling them to live in the United States. Immigrants already in the U.S. are required to submit Form I-485, which seeks to adjust their current status to permanent residency.

DS-260 Form Requirements

The DS-260 form requires each applicant to provide the following details:

• • Their National Visa Center (NVC) case number.
  • Their invoice identification number.
  • Personal information.
  • Adequate travel documentation to confirm identity and nationality.
  • Current residence.
  • Social media profiles.
  • Information on family, including details about parents, spouse(s), and children.
  • History of travel to the U.S.
  • Employment, education, and training background.
  • Security and background details, including:
    • Medical and health information.
    • Criminal record.
    • Violations of immigration law.

All applications must be completed in English.

Processing and Consular Interview

Processing times can vary based on the complexity of the application. For instance, applicants who have traveled extensively to countries considered to be security risks, or those currently living in countries deemed high-risk, might undergo more thorough examination.

After processing the application, an immigration officer will send an interview appointment package to the applicant, scheduling a visa interview at a U.S. embassy or consulate. During the interview, a consular officer will assess the applicant’s eligibility for an immigrant visa. Digital fingerprint scans will also be taken at this time.

Timeline for the EB-5 Visa Application Process

This timeline outlines the necessary steps for an EB5 investor:

• • • Choose an EB-5 project that meets eligibility criteria.
    • Invest a minimum of $800,000 in the project if it’s situated in a Targeted Employment Area (TEA) or $1,050,000 if located outside of a TEA.
    • For direct investments, file Form I-526 with USCIS, or for regional center investments, submit Form I-526E.
    • Upon approval, the investor and each family member (residing outside the U.S.) must fill out and submit Form DS-260.
    • If residing abroad, an immigration officer will schedule an interview for the applicant(s) at a designated time and date.
    • Following the interview and DS-260 approval, the investor is granted an EB5 immigrant visa (conditional Green Card), authorizing residency and employment in the U.S. This visa is valid for two years.
    • Before the EB5 visa expires, the investor must submit Form I-829 to remove the conditions on their Green Card.
    • With the conditions lifted, the investor obtains permanent residency in the U.S. and becomes a permanent Green Card holder.

Start Your EB-5 Journey with EB5AN

The EB5 program is a popular way for foreigners and their families to get permanent residency in the U.S., and filing DS-260 is an important part of it. Just like with any stage in a foreign investor’s immigration journey, it’s recommended that investors seek professional assistance during the immigrant visa application process.

EB5AN has helped more than 2,300 families from 60 countries relocate to the United States as lawful permanent residents. Our expert team has more than a decade of experience, and offers clients first-rate, low-risk EB-5 regional center projects with 100% USCIS project approval rate to date.

For further details about the DS-260, book a one-on-one call with our EB-5 team today and receive professional support through each step of your EB-5 process.

Having a Green Card offers numerous immediate advantages to EB-5 investors, yet it’s their children and family members who stand to gain even more in the long run, including the chance to study, work, and reside in the United States indefinitely. Through the avenues opened by EB5 investments, the children and families of investors have the opportunity to build prosperous lives in the U.S., benefiting from the rights and privileges that come with permanent residency.

In this article, we will explore numerous advantages the EB-5 program offers to investors with families, particularly those with children.

Understanding the EB-5 Visa Program

The EB5 visa program serves as a pathway for investors to gain Green Cards by investing in the U.S. economy. Through the EB-5 visa, investors secure the ability to live in the United States without requiring an employment or visa sponsor. It also eliminates the need for an H-1B visa to be employed by U.S. companies.

Application Process

An EB-5 application starts with a qualifying investment. Following this investment, EB-5 investors must submit Form I-526E, accompanied by evidence proving their investment aligns with program stipulations (details provided below). Then, investors present within the United States need to submit Form I-485 to adjust their status. Those outside the United States should apply using form DS-260. A policy revision in March 2022 now permits investors within the United States to concurrently file Form I-526E and Form I-485, eliminating the necessity to await approval of Form I-526E before proceeding with the I-485 application.

Eligibility Criteria

• Capital utilized for EB-5 investments needs to be obtained through lawful means and remain at risk for the duration of the investment.
• Investments through the EB-5 program should either establish a new commercial enterprise or aid in the recovery of a struggling business.
• It’s mandatory for EB-5 investments to generate a minimum of 10 employment opportunities for eligible American workers. These positions should be maintained for at least two years, although they do not have to be occupied by the same individuals throughout this timeframe.
• For EB5 projects situated in designated Targeted Employment Areas (TEAs), the investment threshold is set at a minimum of $800,000. For projects outside of these areas, the minimum investment rises to $1,050,000.

The EB-5 program ranks as one of the most straightforward routes to U.S. residency and, ultimately, citizenship for individuals with sufficient funds. Through EB-5 investments, investors gain the opportunity to obtain Green Cards for themselves and their eligible family members, namely their spouses and unmarried children under the age of 21. Acquiring U.S. Green Cards for the entire family offers numerous advantages, many of which will be thoroughly detailed below.

Advantages of a Green Card

Holding a U.S. Green Card offers numerous advantages to foreign nationals, particularly for EB-5 investors with children.

General Benefits of Green Cards

Green Card holders enjoy the freedom to travel without restrictions. Unlike individuals on more limited visas, those with Green Cards can depart and re-enter the U.S. without the risk of being denied entry, provided they return within a year of leaving. Additionally, Green Card holders are eligible to work for any employer in the U.S., including many state and local government positions and jobs requiring security clearance.

Under the law, Green Card holders are afforded protections similar to those of U.S. citizens, alongside most rights citizens have. Green Card holders are also able to engage in the U.S. political landscape by contributing to and volunteering for political campaigns.

Advantages for Children

A key advantage of an EB5 Green Card is access to the U.S. educational system, allowing EB-5 investors to enroll their children in public schools from kindergarten through high school at no additional cost. Children of EB-5 investors can undergo their full primary and secondary education in the U.S.

Beyond the direct benefits of an American education, children holding Green Cards also gain the advantage of learning English in a native setting. Proficiency in English, a language prevalently used in global business, equips children with a valuable skill set, enhancing their future career opportunities and enabling them to achieve fluency on par with native speakers if they start learning early.

U.S.-educated children are well-positioned for higher education within the country. With the support of experienced teachers and administrators in navigating the college admissions process, students can easily access guidance and prepare for required tests like the SAT and ACT, facilitating their college applications.

Having been accustomed to the U.S. educational environment, these children face a shorter adjustment period when entering American colleges compared to international students. Furthermore, Green Card holders educated in the U.S. are more likely to meet the English proficiency requirements of most colleges without difficulty.

The EB5 program extends benefits to adult children as well; parents can fund an EB-5 investment on their behalf, offering a pathway to a Green Card. This option is particularly appealing for parents not seeking U.S. residency themselves and for those with children who are married or above the age of 21.

Educational Advantages for Students

Students holding EB-5 visas are classified as U.S. residents, positioning them alongside U.S. citizen applicants in the college admissions process rather than with international student applicants. This status is advantageous, as many colleges limit the number of international students they admit to ensure availability for U.S. students. Permanent residents bypass these limits, enhancing their chances of acceptance into U.S. colleges compared to their international counterparts.

Tuition fees in the U.S. are notably higher for international students, but Green Cards can significantly reduce these costs. Resident students may qualify for in-state tuition rates at public colleges, which are substantially lower than tuition fees for out-of-state or international students.

Moreover, Green Card holders have access to a broader range of scholarships and financial aid opportunities that are exclusive to U.S. citizens and permanent residents.

One significant benefit for students with Green Cards is the ability to work without the limitations faced by those on student visas, who are typically restricted to on-campus employment. Permanent residents can work any job, participate in internships, and pursue employment opportunities after graduation without restrictions.

Unlike international students, who may need to renew their visas during their studies, Green Card holders are exempt from this requirement, avoiding the complexity of the U.S. immigration system during their education.

Post-graduation plans are also more straightforward for Green Card holders compared to students on visas. While those on student visas often need to get another visa or return home after their studies, Green Card holders are free to remain in the U.S., pursue employment, and engage in post-graduate opportunities without the need to adjust their status or secure employment sponsorship.

Family-Wide Rewards

Obtaining a Green Card through the EB-5 program enables investors to establish a foundation for their family members to build their lives in the United States. The “jus soli” principle, or right of the soil, ensures that children born in the U.S. automatically receive U.S. citizenship.

So, investors opting to start or expand their families in the U.S. are essentially providing their U.S.-born children with the privilege of U.S. citizenship. This legacy of citizenship can extend to future generations, as U.S. law allows for citizenship by descent if one parent is a U.S. citizen. The long-term advantages of acquiring a Green Card through the EB5 program can span multiple generations.

Beyond obtaining Green Cards for their spouses and unmarried children under the age of 21, EB-5 Green Card holders also have the capability to sponsor additional family members for Green Cards. This includes unmarried children of any age.

Another advantage of having a U.S. Green Card is entry into the American healthcare system, renowned for hosting some of the finest hospitals, medical schools, and research institutions globally, along with cutting-edge healthcare technologies. EB-5 investors with Green Cards can obtain health insurance and access top-tier medical care. They may also qualify for social security benefits, which could include financial aid.

Green Cards also permit EB5 investors to spend their retirement years in the U.S. Contrary to popular belief, a tourist visa is not sufficient for retirement in the country. Although a tourist visa is valid for a decade, it only allows for a six-month stay per visit. On the other hand, Green Card holders can reside in the U.S. indefinitely, making the EB5 program an ideal route for those seeking retirement in the United States.

Key Insights to Remember

While enjoying numerous benefits, Green Card holders also face certain limitations. These include:

• Green Cards need to be renewed every ten years.
• Holders of Green Cards are not entitled to U.S. passports.
• Children born abroad to Green Card holders are not automatically eligible for Green Cards themselves.
• Having a Green Card does not grant the right to participate in U.S. elections through voting.
• Green Card holders cannot seek elected political positions in the U.S.
• Protected against deportation under most circumstances, Green Card holders can still face deportation for legal violations or criminal activities.
• It’s mandatory for Green Card holders to carry their Green Cards at all times, with failure to do so potentially leading to a 30-day jail sentence.
• Green Card holders need to take additional steps to secure their re-entry into the U.S. if they will stay abroad for a long time.
• Green Card holders planning to stay outside the U.S. for an extended period of time may risk losing their status.
• Green Card holders are required to file annual income tax returns with the IRS and their residing state’s tax authority (although some states do not impose state income tax).
• Male Green Card holders aged between 18 and 25 are obliged to register with the Selective Service, despite the last U.S. military draft occurring in 1973.

Work with EB5AN to Maximize Benefits

By participating in the EB-5 program, foreign investors can gain U.S. residency benefits and even pursue U.S. citizenship later on. To successfully navigate every step of this process, it is highly advisable to seek help from industry experts.

EB5AN has helped more than 2,300 families from 60 countries relocate to the United States as lawful permanent residents. Our expert team has more than a decade of experience, and offers clients first-rate, low-risk EB-5 regional center projects with 100% USCIS project approval rate to date.

If you are a prospective EB-5 investor seeking to explore how this program can provide your family with vast opportunities, book a free call with our EB-5 team today.

Every EB-5 investment carries inherent risks. These risks vary across different project types but can generally be categorized under two groups: immigration risk and financial risk.

These two risk categories align with the primary motivations for EB-5 investors. The main reason why foreign nationals invest in EB-5 projects is U.S. immigration, so immigration risk is the first consideration.

Additionally, with a substantial amount of money involved, protecting this investment is crucial, leading us to the second consideration—financial risk.

EB-5 investors are advised to meticulously evaluate the immigration and financial risks associated with any EB-5 project. It’s crucial to steer clear of projects that present high levels of either type of risk. Fortunately, there are low-risk projects available, and investors are encouraged to be discerning in their choices.

In this article, we will explore the two types of risks involved in EB-5 investments, and delve into what investors can do to mitigate these risks.

What Is Immigration Risk?

Immigration risk involves any factor that could hinder an investor’s main objective of securing a permanent Green Card to become a lawful permanent resident in the United States.

Mitigating immigration risk means tackling the key factors that lead to the denial of EB-5 immigrant petitions. Individual risks for EB-5 investors arise from their background and the accuracy of their petitions. Petitions can be rejected by the United States Citizenship and Immigration Services (USCIS) for reasons such as fraud, false representations, illicit sources of EB-5 investment capital, and other specific shortcomings related to an investor. To minimize these personal risks, EB-5 investors are advised to carefully choose their immigration counsel.

For investors who submit accurate applications in good faith, in addition to having clean backgrounds and legitimate source of funds, the most common reasons for the denial of EB-5 immigrant petitions involve lapses in compliance by regional centers or issues with the project itself, particularly a failure to generate the required number of jobs.

Compliance with EB-5 Requirements

USCIS requires strict compliance with the EB-5 program’s regulations. Navigating the EB-5 rules has always been complicated, requiring expertise to successfully set up projects that are eligible for EB-5 investments. The enactment of the EB-5 Reform and Integrity Act of 2022 made it even more important to have an experienced and well-informed regional center sponsor to guarantee EB-5 compliance.

To minimize immigration risk, EB-5 investors are encouraged to choose projects associated with independent, third-party regional centers that are not affiliated with the project’s developers. It’s crucial that the operator of the regional center has considerable experience and a track record of meeting all EB-5 program requirements. Ensuring accountability is essential for establishing trust, so investors should choose projects where regional centers are committed to regular updates and value transparency.

Fulfillment of Job Creation Requirements

EB-5 immigration risk is closely linked to the requirement of job creation. The EB-5 program’s core objective is to spur economic growth within the United States, particularly in rural areas or regions with higher-than-normal unemployment rates. The program gauges economic development by the amount of money invested and the number of jobs created.

For an investor to be eligible for permanent residency, a minimum investment of $800,000 is required for projects in a targeted employment area (TEA), or $1,050,000 for projects situated outside of a TEA. A TEA is designated based on rural status or high unemployment levels.

Beyond the financial commitment, the EB-5 program requires the creation of at least 10 full-time, permanent positions for U.S. workers per investor. In the case of projects sponsored by regional centers, employment numbers are calculated using economic models. For these projects, both the jobs created directly by the project and those that come from the surrounding economic activity can be considered.

Investors are advised to steer clear of projects that only aim to meet the bare minimum job creation requirement. Projects that are expected to generate a significant number of additional jobs are preferable.

According to EB-5 regulations, investing in successful projects that have already created jobs is allowed. Therefore, the safest projects for investment are those that have already surpassed the job creation requirements for all prospective EB-5 investors.

What Is Financial Risk?

Financial risk refers to any factor that could jeopardize the complete return of the capital an EB-5 investor has placed into an EB-5 project.

To minimize financial risk, it’s essential to focus on the fundamental aspect of any investment: the ability of the developer to not only complete the project and achieve financial success but also to return all the invested capital.

Certain EB-5 projects are heavily reliant on EB-5 capital for their success, and without achieving a critical level of EB-5 investment, these projects may fail. These projects have not secured alternative financing to cover all necessary expenses and may struggle to find the required funding to proceed. Such scenarios pose considerable immigration and financial risks to EB-5 investors, as a project’s inability to reach completion as intended could lead to insufficient job creation and the potential partial or total loss of the investors’ funds.

Projects that exhibit the lowest financial risk to EB-5 investors are those that have already secured enough funding to ensure the completion of the development and/or operations and do not depend on EB-5 investments for their success. In these cases, EB-5 funds serve as an alternative to more costly financing options.

Choosing Projects with Minimal Risk

EB-5 investors should carefully assess projects and only select projects that offer excellent regional center compliance, have already created enough jobs for the maximum number of EB-5 investors, and are not reliant on EB-5 capital to succeed.

EB5AN is pleased to offer several such projects.

For more information on EB5AN’s best-in-class, low-risk EB-5 projects, please schedule a free one-on-one call with our team today.

South African citizens with the financial means for investment and a wish to relocate their families to the United States might find the EB-5 Immigrant Investor Program an attractive pathway. This program is often seen as one of the most straightforward and fast routes to securing the benefits and liberties that come with being a lawful permanent resident in the U.S.

Introduced in 1990 by Congress, the EB-5 program aims to stimulate economic growth and create jobs for American workers.

To qualify under the EB-5 program, an investor is required to invest a specified minimum amount of capital into a new commercial enterprise that will generate at least ten full-time jobs for American employees. This investment enables the investor and their immediate family members to gain permanent residency.

This status offers several privileges and rights similar to those of U.S. citizens, including:

• The liberty to live and work across the U.S.
• Access to U.S. healthcare and education systems.
• Comprehensive protection under U.S. law.
• The ability to travel internationally with ease.

Moreover, it sets the stage for eventual U.S. citizenship.

Each year, a set number of EB-5 visas are allocated, with a cap that restricts any single country to a maximum of 7% of the total visas to prevent monopolization by applicants from countries with high demand, such as China. This system leaves ample opportunity for nations with lower application volumes, such as South Africa.

This guide outlines the EB-5 program, addresses the potential obstacles South African EB-5 investors may encounter, offers solutions to these challenges, and explores the steps to secure permanent residency through the EB-5 visa.

Benefits of the EB-5 Green Card for South African Investors

There are several pathways for foreign nationals to get permanent residency in the U.S., granting them the right to live and work in the country without limitations. These pathways include:

• Becoming an immigrant investor via the EB-5 program.
• Marrying a U.S. citizen.
• Gaining approval as an immigrant worker.
• Obtaining refugee or asylum status.
• Securing a Green Card through the diversity lottery.

For South African nationals, investing under the EB-5 program opens the door to obtaining a permanent U.S. resident visa (Green Card), which also extends eligibility to their dependent family members (spouse and unmarried children under 21).

The EB-5 program requires a substantial investment into a new commercial enterprise (NCE) that positively impacts the U.S. economy. This investment threshold is set at $800,000 for projects within targeted employment areas (TEAs) or $1,050,000 for those outside of TEAs.

A core requirement of the EB-5 initiative is the generation of employment. Each investment must lead to the creation of at least 10 permanent, full-time positions for eligible U.S. workers, which must be maintained for a minimum of two years.

The EB-5 program offers two investment options: direct investment in an EB-5 project or through a regional center.

Regional centers are entities designated to oversee and channel EB-5 investments into qualifying new commercial enterprises. This model, often favored by South African investors and those from other countries, typically sponsors real estate projects and NCEs of significant scale, making it a prominent choice within the EB-5 community.

EB-5 Green Card Application Process

The initial step towards gaining permanent residency in the U.S. for an investor via the EB-5 program is selecting an eligible EB-5 project and regional center.

For investments in projects located within a targeted employment area (TEA), the investor is required to deposit the minimum investment of $800,000 into the regional center’s investment pool. The investor must prove that the investment funds are personally owned and have been acquired through lawful means, such as earnings, dividends, gifts, inheritance, real estate sales, or stock transactions.

Then, the investor must submit Form I-526E to the United States Citizenship and Immigration Services (USCIS), the federal agency managing the EB-5 program under the Department of Homeland Security, through an immigration lawyer.

In this submission, the investor needs to verify that:

• The necessary investment has been made in a project that meets EB-5 criteria.
• The investment, if at the $800,000 minimum, is in a project situated within a TEA.
• The investment funds were obtained legally.
• The investment will result in the creation of the required number of jobs.

Following the approval of Form I-526E, the investor is eligible for an EB-5 visa and must undergo a health screening. For those residing outside the U.S., a Form DS-260 immigrant visa application must be filed with the U.S. Department of State. Investors already in the U.S. on a non-immigrant visa should file Form I-485 instead. These investors may be eligible for concurrent filing of Form I-485 at the same time as their I-526E.

After the medical check and obtaining the EB-5 visa, investors can relocate to the U.S. as conditional residents, a status that is valid for two years.

To remove the conditional status, investors must file Form I-829 with USCIS within 90 days before the two-year Green Card expires. Approval of this petition grants the investor and their dependents lawful permanent residency and permanent Green Cards in the U.S.

South African EB-5 investors are eligible to apply for U.S. citizenship after living in the U.S. for five years. The two-year conditional residency also counts toward this time requirement.

History of EB-5 Visas for South African Nationals

In April 2020, the system of processing I-526E petitions on a first-come, first-served basis was revised in favor of a new approach that gives priority to petitions from countries with visas readily available, significantly benefiting South Africans by shortening their wait times.

There was a remarkable surge of 226% in the issuance of EB-5 immigrant visas to South Africans from the fiscal years 2017 to 2019. The subsequent decrease in the issuance of EB-5 Green Cards during 2020 and 2021 was mainly due to the global halt in consular services abroad triggered by the COVID-19 pandemic and the lapse of the regional center program.

The South African embassy and consulates then continued processing EB-5 Green Card applications, and the regional center program was reauthorized in June 2022.

With these issues resolved, it was anticipated that the EB-5 visa would regain its popularity among South Africans, seeing a significant uptick in interest and applications.

Based on the number of EB-5 visas issued via consular processing in the last three years, South Africa indeed has the highest number among African nations, with Nigeria and Egypt following closely behind. In FY2023, this number was 65 for South African investors, through consular processing alone. South Africans became the fourth largest EB-5 investor group among all countries to receive EB-5 visas during the first quarter of FY2024.

Obstacles South African EB-5 Investors Face

In addition to fulfilling the criteria of the EB-5 program, South Africans must navigate the foreign exchange controls implemented by the South African Reserve Bank (SARB), which monitors the movement of capital into and out of the country.

South African citizens aged 18 and above are allowed to transfer up to R 1 million abroad without needing a tax clearance from the South African Revenue Service (SARS) or SARB’s approval. This limit can be extended to R 10 million annually, if they obtain both SARB clearance and a tax clearance certificate for foreign investments.

For investments surpassing the R 10 million mark, South Africans are required to seek special approval from both SARB and SARS.

The EB-5 program’s minimum investment requirement of $800,000 for projects in a targeted employment area (TEA) is approximately R 15 million, exceeding the R 10 million threshold. However, investing in an EB-5 project in the U.S. offers South Africans the opportunity to earn returns on an active investment, along with the possibility of a timely capital return if the project is low-risk.

Given the significant financial implications of migrating to the USA from South Africa, prospective investors are encouraged to consult with an immigration lawyer who has extensive experience in the EB-5 industry.

How to Overcome These Obstacles

Despite restrictions imposed by the South African government on overseas money transfers, South African investors have options to move the necessary capital for an EB-5 investment.

• Investors with pre-existing funds in international portfolios may bypass the need for South African Reserve Bank (SARB) approval or tax clearance from the South African Revenue Service (SARS).
• Each adult South African is entitled to transfer up to R 10 million abroad annually for legitimate reasons. Investors can pool their allowable transfer limit with that of their spouse and/or adult children to meet the investment requirement each year.

It is advisable for EB-5 investors to engage with an experienced foreign exchange intermediary based in South Africa to ensure full compliance with SARS and SARB regulations.

Employing these strategies not only facilitates the transfer of investment funds but also ensures that the investor and their family members maintain eligibility for EB-5 visas, in line with United States Citizenship and Immigration Services guidelines, assuming all funds are legally sourced and properly documented.

Approximate Timeline for Approval

Every EB-5 investor should be prepared for their Green Card process to span multiple years, with the processing of the I-526E petition potentially extending over two years. That said, the processing times for any Green Card category by United States Citizenship and Immigration Services tend to change. This timeline can also heavily depend on the investor’s choice of EB-5 project; investing in a rural project can significantly reduce wait times.

Petitions from South African investors are also processed faster than those from countries facing EB-5 backlogs, as South Africa is in “current” status as of the April 2024 visa bulletin.

How to Start the EB-5 Process

As mentioned above, those investing in rural targeted employment area (TEA) projects may benefit from priority processing of their Form I-526E, which makes this an ideal time for South African investors to pursue permanent residency in the United States.

Prospective investors are encouraged to consult an immigration attorney who has experience with South African laws.

If you are a South African national, book a free call with our EB-5 team today to learn more about your options leading to an EB-5 Green Card.

The appeal of using EB-5 investment financing as a main source of funding is clear in many industries, such as business and real estate development. This is mostly because of the attractive, often below-market interest rates it offers.

The EB-5 Regional Center Program has significantly contributed to the growth of the EB-5 investment industry. This program allows EB-5 visa applicants to invest their funds through entities known as regional centers, which then distribute this capital to their business or real estate projects.

After a temporary halt in 2022, the regional center program was reinstated on June 24, 2022, by a decision from a U.S. federal district court. Since the regional center option has typically been the preferred choice for EB-5 investors, there has been a consistent upsurge in new regional center projects. This has also translated into more applications for new regional center designations or purchases of existing ones.

In this article, we will cover every aspect of EB5 regional center acquisitions.

Characteristics of the EB-5 Regional Center Program

The regional center model for EB-5 investments pools funds from several investors, allowing for larger-scale projects and typically decreasing the immigration risk for foreign nationals. On the other hand, the direct EB-5 investment model is limited to a single EB-5 investor.

A distinctive advantage of EB-5 regional center projects is the recognition of indirect and induced job creation. For EB-5 visa eligibility, an investor needs to show their investment contributed to the creation of a minimum of 10 jobs in the U.S. While direct jobs created by an EB-5 investment must be maintained for no less than two years on a full-time basis, regional center projects can also include indirect and induced jobs generated through construction spending and operational revenue in their job creation count. This method allows for the job creation criteria to be met through the documentation of construction expenses and verified revenue generation.

This flexibility in meeting EB-5 visa job creation requirements not only increases investors’ chances of visa approval but also boosts the attractiveness of regional center investments.

Benefits of Acquiring a Regional Center

Both private and public business structures, including limited liability companies (LLC) and limited partnerships (LP), are eligible to submit Form I-956 to obtain a regional center designation from the United States Citizenship and Immigration Services (USCIS). The I-956 submission is required to prove compliance with USCIS guidelines and to affirm that the regional center’s projects will advance the EB-5 program’s objectives of stimulating economic growth and creating jobs. Achieving regional center designation enables an organization to receive investments from numerous EB-5 investors and collaborate with top-tier businesses and real estate developers.

Minimized Costs

Receiving a regional center designation from USCIS comes with significant expenses. Filing Form I-956 requires a comprehensive business plan and economic analyses. As of April 2024, the application fee for Form I-956 and Form I-956F are set at $47,695.

However, acquiring an existing regional center bypasses the need for a new USCIS designation.

Immediate Access to EB-5 Capital

New regional center owners need to be prepared for the potentially long Form I-956 processing times. As of March 2024, no specific processing times are reported for this form on the USCIS processing times page. This might pose a challenge for entities like real estate developers who need to start raising EB5 capital without delay.

An established regional center for sale, on the other hand, could already have a good reputation among EB-5 investors and developers, making the capital raising process smoother. An existing EB-5 regional center that has a successful track record and is ready to receive funding is more likely to facilitate collaborations with EB-5 promoters, migration agents, immigration attorneys, and other industry professionals.

Purchases of approved regional centers typically occur through equity acquisition, where the regional center’s equity is completely transferred to the new owner, including both assets and liabilities.

Individuals who are interested in buying or selling a regional center must be aware of the complexity of these transactions, which require vast knowledge of corporate dealings, mergers and acquisitions, and EB-5 immigration law.

Promoting Your Regional Center for Sale

Owners who would like to sell their regional centers are advised to seek guidance from an EB-5 expert on the sales process. A skilled EB-5 specialist can facilitate connections with prospective buyers while ensuring compliance with USCIS regulations throughout the acquisition.

Regional center owners also have the option to approach other regional centers that may be looking to broaden their geographical reach. Platforms such as EB-5 industry websites, publications, and both in-person and virtual conferences offer great opportunities for promoting a regional center available for sale.

Managers intending to sell their regional center should remember that the new proprietors will inherit responsibility for any ongoing EB-5 projects sponsored by the regional center.

Due Diligence When Buying a Regional Center

The Importance of Thorough Due Diligence

Before making a purchase decision, potential buyers of a regional center need to conduct due diligence. They will assume the responsibility of overseeing active projects and ensuring compliance with USCIS regulations for accounting and transparency, adherence to marketing guidelines and the Securities and Exchange Commission (SEC) regulations, among other responsibilities related to the sponsorship of an EB-5 project.

It is also critical to understand that the capital from EB-5 investors must remain “at risk” in the project until the investor submits the I-829 petition to secure permanent residency status.

If a regional center on the market has been inactive for a long time, there’s a risk of USCIS terminating its designation because it fails to contribute to economic development and job creation.

Inspecting the Records of the Regional Center

Prospective buyers are advised to thoroughly review the regional center’s corporate, fiscal, securities, and legal documentation as part of their due diligence efforts. Essential documents for evaluation include:

• Organizational documentation such as articles of incorporation, formation and operating agreements, an Employment
• Identification Number (EIN) notice, and LLC agreements where relevant.
• Annual communications with shareholders, documentation of any mergers, acquisitions, or changes in administration, and an outline of the regional center’s management hierarchy.
• Documentation related to the regional center’s equity, such as stock certificates, stock purchase agreements, licenses pertaining to the issuance or transfer of securities, and promotional materials for the regional center’s financial offerings.
• Information on the regional center’s financial obligations, including debts, loans, and other liabilities.
• History of any legal disputes or audits that have involved the regional center up for sale.

Evaluating Documentation from USCIS

Inspecting the USCIS documentation of the regional center is also a critical part of the due diligence process. The seller is expected to provide the I-956 approval notice, Form I-956G, and any I-924A annual certifications previously submitted to USCIS, along with records of compliance audits and any major changes to the regional center’s management or operational framework post-designation. (The introduction of several new forms for regional centers by USCIS, following the EB-5 Reform and Integrity Act of 2022 in March 2022, means that existing regional centers might need to present older versions of these forms.)

If there have been any USCIS inquiries such as a request for evidence (RFE), a notice of intent to deny (NOID), or a notice of intent to terminate (NOIT), the seller must demonstrate that these were promptly and effectively addressed to resolve compliance issues. A regional center that has lost its USCIS designation is disqualified from managing EB-5 investments.

Navigating the Acquisition of Regional Centers

After the prospective buyer concludes the due diligence process and chooses to proceed with the acquisition, both parties are required to draft and prepare the necessary contracts and documentation for the transaction.

Usually, the buyer formulates the initial terms of the acquisition in a letter of intent (LOI) and forwards it to the management of the regional center for their consent. This document, which precedes the final purchase and sale agreement, outlines key details such as the agreed-upon purchase price, any escrow agreements, the potential involvement of a broker, and the specifics of the closing procedure.

The Role of Escrow in Transactions

If there is an arrangement for holding a portion or the entirety of the buyer’s funds in escrow prior to their distribution, both parties sign an escrow agreement. This contract details the conditions that must be fulfilled for the escrowed funds to be disbursed, specifies the bank acting as the escrow agent along with its responsibilities, and outlines the fees incurred throughout the escrow period.

A portion of the buyer’s funds might remain in escrow pending the USCIS’s approval of the Amendment of Regional Center Designation.

Finalizing the Purchase

For the transfer of the seller’s membership interest in the regional center to the buyer, both parties are required to sign an assignment of membership interest agreement. This document outlines the sale price and the specific portion of membership interest being transferred without recourse. Additionally, all members of the regional center’s management team must provide official resignation letters.

Next, a formal membership interest purchase agreement is signed by the parties. This agreement includes the terms from both the assignment of membership interest and escrow agreements. It confirms that the regional center being sold doesn’t have any hidden liabilities or major legal issues. It also includes details about any previous notices of intent to terminate (NOITs) issued, the responsibilities of each party in the event of a contract violation, and attachments verifying the regional center’s USCIS designation, its geographical operational scope, and other features.

Amendment of Regional Center Designation

A crucial element of the membership interest purchase agreement involves specifying the procedure for submitting the Amendment of Regional Center Designation to USCIS. This amendment informs USCIS about the changes in the regional center’s name and ownership, providing essential details on the ownership transition, the date on which the final sale agreement was formalized, and the new ownership framework of the buyer.

USCIS’s response to the regional center amendment could be an approval, a request for evidence (RFE), or a notice of intent to deny (NOID). The transaction documentation should include a well-defined plan for addressing any unfavorable decisions from USCIS. If the amendment faces rejection after all appeals and other administrative remedies have been exhausted, the buyer’s funds held in escrow may be returned.

If the amendment receives approval, the standard procedure is for any funds still in escrow to be released to the seller.

The sale of the regional center usually represents a material change, defined by USCIS as a considerable change in the regional center’s ownership structure. So, the buyer should be aware of how this change in ownership could affect investors in ongoing projects sponsored by the regional center. Investors in these active projects must be informed about the change in ownership.

Seeking Professional Assistance with Regional Center Acquisitions

When buying or selling an EB-5 regional center, seeking help from the right industry experts can make all the difference.

EB5AN is a leading EB-5 industry consultancy, project manager, and regional center operator. We own over 10 EB-5 regional centers that cover the entire continental United States, and we have facilitated the sale of over 10 regional centers. We encourage prospective EB-5 project operators and regional center owners to book a call with our EB-5 team to learn more about how to buy or sell an existing regional center.

The EB5 visa program offers one of the quickest routes to obtaining permanent residency in the U.S. It enables investors who make a substantial investment in the U.S. economy to secure Green Cards for themselves and their direct family members, including spouses and unmarried children under the age of 21. Holding permanent residency (Green Card) allows investors and their families to live and work anywhere in the United States, enjoy unrestricted travel, and removes the requirement for an H-1B visa, an employment sponsor, or a visa sponsor.

In this article, we will look into the details of how the EB-5 program works, its requirements, and the two types of EB-5 investments along with their pros and cons.

EB-5 Visa Application Process

After investing in a new commercial enterprise (any for-profit business started or restructured after November 29, 1990), participants of the EB-5 visa program must submit either Form I-526E or Form I-526. Following approval from USCIS, EB5 investors outside the United States need to file Form DS-260. Those who are already within the U.S. must file Form I-485, Application to Register Permanent Residence or Adjust Status. Since March 2022, investors residing in the U.S. are no longer required to wait for the approval of their I-526E petition before filing Form I-485; they have the option to submit both applications simultaneously.

EB-5 Investment Requirements

• EB-5 investments must either establish a new commercial enterprise, invest in an existing commercial enterprise, or revive a struggling business, with the latter requiring significant changes to the business.
• EB5 investments need to generate a minimum of 10 employment opportunities for individuals authorized to work in the United States. These positions must be full-time, and should be maintained for at least two years. Although each job must be sustained for two years, it doesn’t have to be the same employee who occupies the role throughout this period. Employment of investors’ family members within the business does not count toward the job creation requirement.
• EB-5 investors must demonstrate the lawful acquisition of their investment capital, such as earnings or gifts, through detailed evidence including bank records and tax documents.

Comparing Direct EB-5 Investments and Regional Center Projects

EB-5 investments come in two forms: direct investments and investments within a new commercial enterprise that is sponsored by a regional center. Each investment type has its own set of requirements and procedures, with varying levels of risk and potential rewards. The suitability of either a regional center investment or a direct investment depends on the objectives of the investor. After committing to an EB-5 investment, an investor is unable to change from one investment type to the other, making it crucial for investors to thoroughly evaluate their options and make a well-informed decision prior to investing in a project.

Direct EB-5 Investments

With direct investments, EB-5 investors allocate their capital directly into a new commercial enterprise. This method is appealing to investors seeking greater involvement in the business’s decision-making and operational aspects. Direct investors are often expected to play an active role in the business.

Under the EB-5 Reform and Integrity Act of 2022 (RIA), a new commercial enterprise under a direct investment can be funded by only one investor, preventing the pooling of capital from multiple investors for a single project.

For direct investment ventures, the job creation requirement is strictly tied to full-time, W-2 employees of the enterprise, and investors are required to show evidence that their investment has led to the creation of 10 jobs, each lasting at least two years.

Regional Center Investments

Introduced in 1992 as a pilot program requiring regular reauthorization by the federal government, the regional center-sponsored investment model offers an alternative to direct EB-5 investments. In this model, investments are channeled into projects sponsored by regional centers. Foreign nationals can have less control over business operations compared to direct investments.

Pros and Cons of Direct and Regional Center Investments

Job Creation

One significant distinction between direct investments and regional center investments is that indirect jobs can be counted toward the job creation criteria with regional center investments.

This approach utilizes econometric analyses to calculate the broader economic effects of an investment. Within regional center projects, indirect and induced jobs can account for as much as 90% of the total jobs generated by the project.

 
This regulation simplifies the process for investors to demonstrate compliance with the job creation criteria of their EB-5 investment.

Pooled Funds

The privilege of pooling investments from multiple EB-5 investors is exclusive to regional center projects. This implies that developers wishing to combine funds to meet the financial requirements of a project must work with a regional center, which can accommodate multiple investors. This characteristic makes regional center investments appealing to individuals with limited resources or those interested in investing in projects that require more capital than a single investor can supply.

Moreover, many projects associated with regional centers are situated in Targeted Employment Areas (TEAs), allowing investors to commit a reduced investment of $800,000 instead of $1,050,000.

Ease of Application

Regional centers are entities designated by USCIS, assuring investors that their investments in regional center-managed projects are valid for the EB-5 visa program. Regional centers also typically have a group of EB-5 experts as part of their team, who can help EB5 investors through every step of the application process and beyond. This support ensures investors can navigate the EB-5 program requirements smoothly and prevent expensive errors.

While participants in regional center projects face less bureaucratic effort to demonstrate their investments’ compliance with the EB-5 program, they can also benefit from less responsibility regarding the day-to-day management of the business.

Financial and Immigration Risks

Given that regional centers already have USCIS approval, they generally represent more secure investment opportunities, potentially increasing investors’ chances of getting their visas approved and their funds repaid.

Choosing the Right Investment Path

For investors aiming for U.S. permanent residency, opting for a regional center-sponsored project might be the best choice, as these investments are generally considered safer. They usually require less hands-on management from investors, although both investment types necessitate some level of involvement. Regional center investments are also advantageous for those who prefer the flexibility to live away from the investment’s location. This flexibility is beneficial for investors with family members interested in working or studying in different parts of the United States, without being bound to a specific area.

On the other hand, direct investments cater to investors who prefer greater control over business operations and decision-making. This investment model can also potentially offer higher financial returns in the long run. However, direct investors must be aware of their obligation to create 10 direct full-time jobs and to invest the full investment capital alone, without the opportunity to co-invest with other foreign nationals.

Additional Guidance for EB-5 Investment Choices

The nature of each investor’s circumstances plays a significant role in which EB-5 investment option would be the best choice for them. This is why prospective investors should seek help from a reliable consulting firm before making these important decisions.

EB5AN has helped more than 2,300 families from 60 countries relocate to the United States as lawful permanent residents. Our expert team has more than a decade of experience, and offers clients first-rate, low-risk EB-5 regional center projects with 100% USCIS project approval rate to date.

If you would like to learn more about your investment options, book a call with our team today and get support throughout every step of your EB-5 process.