For many project developers, the EB-5 Investor Program is a great way to obtain funding for their project or business. The EB-5 program is run by the United States Citizenship and Immigration Services (USCIS) and aims to boost the economy through foreign investments.

As a developer, you can help foreign nationals obtain permanent residency when they invest in your project. However, to qualify for EB-5 investment, you must ensure that your project meets all of the USCIS requirements.

If you’re wondering whether an EB-5 project is the right development opportunity for you, this article will cover everything you need to know to meet the EB-5 program requirements.

A Brief Overview of the EB-5 Investor and Regional Center Program

The EB-5 Immigrant Investor Program is a United States visa program designed to promote economic growth through job creation and capital investment. It allows eligible foreign investors to apply for a Green Card, granting them lawful permanent residence in the country.

The program is popular among individuals seeking to immigrate to the U.S. primarily due to its potential benefits. These include the opportunity for investors and their immediate family members to obtain permanent residency.

To participate and be successful in the EB-5 program, project developers must first meet certain requirements. Among these are factors like having a sufficient amount of capital, filing the correct petitions, and creating a specific number of jobs. In the next few sections, we’ll cover these requirements in more detail.

What Are the Requirements for Setting Up an EB-5 Project as a Developer?

Project eligibility

For a project to be eligible for the EB-5 program, it must fit the definition of a new commercial enterprise (NCE). An NCE is a for-profit entity that was established or restructured after November 29, 1990.

Eligible projects must also demonstrate a reasonable need for investment, allowing at least one EB-5 investor to invest $1,050,000–or $800,000 if the project is in a targeted employment area (TEA). EB-5 projects must also generate at least 10 jobs per EB-5 investor.

Once you have determined whether your project is eligible, you’ll need to decide on its structure. How an EB-5 project is structured largely depends on whether it’s invested directly or sponsored by a regional center.

Project Structure

Direct investment projects

In these projects, the NCE and the job-creating entity (JCE) are the same establishment. EB-5 capital is injected directly into the NCE, which is responsible for creating the required amount of jobs.
Regional center investor projects

Regional centers are evaluated and approved by USCIS and are defined as any economic unit in the public or private sector that intends to promote economic growth. Any existing regional centers must also be designated for participation in the EB-5 program.

In other words, a regional center is an agency that has demonstrated to USCIS its commitment to the EB-5 program’s goal of boosting the U.S. economy through foreign investments and job creation.

If your project is sponsored by a regional center, it’s important to note that the NCE and JCE are separate units. The JCE could be any business or entity associated with the regional center that can create the necessary employment opportunities for qualified U.S. workers.

The NCE will then only serve as the business that receives the EB-5 investment, and will not be responsible for creating jobs. Under a regional center program, direct, indirect, and induced jobs can all count towards the EB-5 program requirements.

Capital investment

Developers must make a qualifying investment that goes towards financing an NCE in the United States. Depending on where the NCE is located, the minimum investment amount may differ.

If the NCE is located in a TEA—a rural area where unemployment is above 150% of the national average—the minimum investment amount for developers is $800,000. For non-TEAs, the minimum investment amount is $1,050,000.

Investing in previously approved regional centers in TEAs will also count towards meeting the EB-5 program requirements. You must submit a specific document—called Form I-956—if you want to set up a development project in previously designated regional centers.

Although regional center designation and operations were temporarily unavailable for a few years, USCIS reinstated this investment route in May 2022.

Job creation

The USCIS mandates that any eligible EB-5 investments must generate at least 10 full-time jobs for U.S. workers under the new regional center program. Developers need to ensure that the project they initiate has the capacity to create and sustain these jobs for at least two years.

There are two types of jobs that can be created from an EB-5 investment:

Direct jobs are any employment opportunities created within the community as a result of the EB-5 project. For example, if you develop a hotel, direct jobs include the staff hired to work there.

Indirect jobs are opportunities that come from the EB-5 project’s impact on the local community’s economy. For example, the hotel might increase the number of tourists that visit the region. These tourists might eat all their meals at your hotel, so you’ll need to buy more produce from the local grocer. In turn, the grocer may be able to employ more people and expand their business thanks to your hotel.

The types of jobs that count toward your total may vary depending on the nature of your investment. Some EB-5 projects only permit the inclusion of direct jobs, while others allow both direct and indirect jobs to be included.

At-risk investment

Developers must ensure that the capital investment made by the regional center or direct investor carries some level of risk, with the potential for both profit and loss. This implies that the investment can’t be a risk-free loan or serve solely as a means for investors to obtain a Green Card. Both investors and developers must demonstrate a genuine intent to generate a return on their investment.

It’s important to note that meeting this requirement also means ensuring that investors don’t put money into a project that guarantees a return on their investment. If they do, your project may not fulfill certain criteria of the program. That’s why investors should always do their research before investing in an EB-5 project to make sure it complies with program requirements.

Management role

As a project developer, you must play an active management role in the business where the EB-5 investment is made. This role is an essential part of the program, and developers must be able to demonstrate how they are involved in the business or regional center operations.

This could include being involved in policy formation, strategic decision-making, overseeing operations, and participating in other day-to-day managerial activities. The developer must also ensure that the business plan is effectively implemented by monitoring capital utilization and the progress of the project, and making the necessary adjustments.

Compliance reporting

Developers should confirm that their enterprise adheres to the relevant laws and regulations, including those related to homeland security, immigration, and employment. They are also responsible for providing accurate and timely reports to the appropriate regulatory bodies, as required by the EB-5 program. It’s recommended to keep an eye on the USCIS website for any EB-5 program updates to ensure compliance at all times.

At EB5AN, our experienced team of immigration attorneys can help you evaluate and maintain USCIS compliance. Visit our website to find out more.

Which Documents Must Developers File for an EB-5 Project?

During the EB-5 Program, several forms must be filed as part of the project development process. These forms are essential for the developer to provide the necessary information and evidence to USCIS to ensure the success of their project.

Documentation that developers may be required to file include:

• Initial project diligence
• TEA designation
• Preliminary project structuring
• Tailored business plan
• Economic and job creation impact analysis
• Capital structure
• Entity design
• Project offering and other legal documentation

It is advisable for developers to work closely with experienced immigration attorneys or advisors throughout the filing process to ensure accurate and timely submission of these documents. Failing to do so may put you at risk of losing your project investment.

If you require professional assistance in filing your EB-5 project documents, EB5AN can help. We’ll create tailored documents that contain all of the information you’ll need while ensuring accuracy and compliance with USCIS regulations.

Easily Set Up Your EB-5 Development With EB5AN

The EB-5 program can be challenging for developers to navigate while ensuring they meet all its specific requirements. That’s why EB5AN is here to help you set up your project with ease. EB5AN has over a decade of EB-5 experience, successfully guiding more than 2000 families from over 40 countries through the project development and investment program.

With a nationwide network of USCIS-approved regional centers that covers more than 30 states and territories and a 100% petition approval rate, EB5AN is well-equipped to streamline your EB-5 development process.

For more information on how our experienced team can help you obtain funding for your project, contact EB5AN today.