Securing U.S. Citizenship Through Investment Programs

In order to acquire U.S. citizenship, a person must either be born to a U.S. citizen, born on U.S. soil to non-citizen parents, or go through the naturalization process after securing permanent residency.

There are several pathways to obtaining an immigrant visa, which lead to permanent residency (commonly called Green Card) in the U.S. These include marriage-based pathways, the diversity visa lottery, and some employment-based options, like investment visas.

Investment visas require a substantial financial contribution to a new enterprise in the U.S. that creates jobs, without the need for a sponsor or specific skills. After fulfilling the requirements of the investment program, the investor is granted an immigrant visa, which means they can be eligible for U.S. citizenship after a certain amount of time.

In this guide, we will explore investment-based pathways to U.S. residency, like the EB-5 visa and the E-2 visa, as well as the subsequent steps to apply for citizenship.

Benefits of Obtaining a U.S. Investment Visa

By obtaining lawful permanent resident (LPR) status via an investment visa, a foreign national is able to:

• Speed up the visa acquisition process compared to most other routes.
• Reside, study, work, and retire across the United States.
• Enroll in the U.S. education system.
• Benefit from top-tier medical services.
• Earn a return on their investment.
• Secure visas for their spouse and unmarried children under the age of 21.
• Pursue naturalization after five years to achieve citizenship status.

Overview of the EB-5 Immigrant Investor Program

Foreign investors who satisfy the criteria of the EB-5 Immigrant Investor Program can get a Green Card and subsequently apply for U.S. citizenship. This program was created in 1990 to boost the U.S. economy through job creation.

Processed by the United States Citizenship and Immigration Services (USCIS), the EB-5 Program is the quickest pathway to obtaining an immigrant investment visa.

Eligibility Criteria for an EB-5 Investor Visa

To be eligible for an EB-5 visa, foreign nationals need to fulfill the following criteria:

• A minimum investment of $800,000 in a Targeted Employment Area (TEA) or $1,050,000 everywhere else.
• A clean criminal background.
• Investment capital must be legally obtained and at risk, with no assurance of return.
• The investment must be placed in either a New Commercial Enterprise (NCE) or an existing business undergoing major restructuring.
• The investment should lead to the creation of at least 10 full-time positions for U.S. workers, sustained for a minimum of two years after the investment.

The Two EB-5 Investment Types

The EB-5 Immigrant Investor Program offers two distinct investment pathways: direct and Regional Center investments, each with its unique set of requirements.

Direct Investments

Direct investments take place without the involvement of third parties.

• The investor is required to engage in the business’s operations personally, either in a managerial role or through direct involvement.
• The business itself must directly create the required 10 full-time positions.

Regional Center Investments

These investments are made through a USCIS-designated EB-5 regional center (RC).

• EB-5 Regional Center investors generally join a limited partnership with other foreign investors, and have minimal involvement in the business’s operations.
• The 10-job requirement can be met through direct, indirect, and induced jobs (with the latter two resulting from the economic influence of the project).

Both direct and Regional Center NCEs can be situated in a Targeted Employment Area for a reduced minimum investment, while investments in additional categories (such as rural TEAs, infrastructure projects, etc.) can lead to priority visa processing opportunities and a faster pathway to U.S. citizenship.

EB-5 Visa Application Process Explained

An EB-5 application undergoes three separate phases before receiving full approval. To understand the details of this process, seeking counsel from an experienced immigration attorney is highly recommended.

Step One: Committing to an EB-5 Investment

Choosing a New Commercial Enterprise

Prior to investing, an EB5 investor needs to select a New Commercial Enterprise that aligns with their preferences. Factors to consider include:

• The amount of financial capital available to them.
• Their interest in starting and managing their own business.
• The choice between a Regional Center and a direct investment.
• The project’s reliance on EB-5 funding.

Investing in the EB-5 Project

Upon selecting a New Commercial Enterprise, either in the form of a new business or an EB-5 project, the investor needs to sign a partnership agreement with the business, usually involving the transfer of the necessary funds into an escrow account.

Submitting Form I-526/I-526E

Every EB-5 investor needs to file either Form I-526, Immigrant Petition by Standalone Investor or Form I-526E, Immigrant Petition by Regional Center Investor, to USCIS. At this stage, the application must include evidence that the investor qualifies for the application, the investment funds are held in escrow, and the EB-5 project is expected to generate the required jobs.

Some of the required documents for Form I-526/I-526E includes:

• Bank statements and tax filings.
• EB-5 NCE partnership agreements.
• Loan agreements.
• Business plans and economic analyses.
• Certificates of birth, marriage, divorce, etc.
• Personal details.

Currently, there is a filing fee of $3,675 for the application, however, USCIS is raising the fee to $11,160 on April 1, 2024.

The approval timeframe for I-526/I-526E can vary significantly depending on each EB-5 case. For current estimates regarding the EB-5 processing timeline, investors can check USCIS case processing times.

Step Two: Achieving Conditional Permanent Residency

Following the approval of Form I-526, an EB5 investor, along with their spouse and children under 21, can apply for a conditional EB-5 Green Card.

If they are in the U.S. at the time of application, they need to submit Form I-485, Application to Register Permanent Residence or Adjust Status, to USCIS. The current filing fee for Form I-485 is $1,170, although this will also increase with the April 1 fee hike.

Under the EB-5 Reform and Integrity Act of 2022 (RIA), EB-5 investors that are already in the U.S. can file their Form I-485 while filing their Form I-526, known as concurrent filing.

If the investor is outside the U.S. during the application process, they must initially complete Form DS-260, Immigrant Visa Electronic Application, at their local U.S. consulate or embassy to secure their immigrant visa.

Step Three: Removing Conditions on Permanent Residency

Before the end of their conditional residency, the foreign national must file Form I-829, Petition by Investor to Remove Conditions on Permanent Resident Status. It is important to do this within 90 days before the two-year period is up.

Along with Form I-829, investors must file:

• Proof that the NCE created and maintained 10 full-time jobs for two years, and the initial investment remained at risk.
• Financial and personal information.
• A copy of the conditional EB 5 visa.

As of March 2024, the filing fee for Form I-829 is $3,750, in addition to a biometrics fee of $85. The filing fee will increase to $9,525 on April 1, 2024.

When an EB 5 investor’s Form I-829 is approved, the conditions on their permanent residency are removed. The investor and their family then become permanent residents in the U.S., with unconditional Green Cards.

Gaining U.S. Citizenship After the EB-5 Investment

After maintaining lawful permanent resident (LPR) status for five years, foreign individuals are eligible to seek U.S. citizenship through naturalization. EB-5 investors can apply after only three years, as their two years of conditional lawful permanent resident (CLPR) status count towards this requirement.

To apply for naturalization, lawful permanent residents must file Form N-400, Application for Naturalization, and meet the following criteria:

• Not having spent more than half of the five-year period outside the U.S., or any stay longer than 180 days at a time.
• Holding a clean criminal record.
• Paying a filing fee of $640 plus the $85 biometric fee, if applicable.
• Undergoing an interview with USCIS officials.
• Successfully completing an English language test, if applicable.
• Knowing and understanding U.S. civics
• Taking the Oath of Allegiance to the United States.

Children under 18 acquire citizenship when their immigrant parents become citizens. Those over 18 and spouses must individually submit naturalization applications and fulfill the same requirements.

The processing time for Form N-400 is currently estimated to be around seven months, depending on the specific Service Center. Upon approval, the individual becomes a U.S. citizen, enjoying full benefits like owning a U.S. passport, voting, and immunity from deportation.

Introduction to the E-2 Treaty Investor Visa

Investors interested in starting their own business or working in the U.S. have an alternative through the nonimmigrant E-2 Treaty Investor Visa. This visa also benefits the investor’s immediate family, certain employees, and their dependents. However, it does not offer a direct route to permanent residency or citizenship, and it is only available to investors of certain nationalities.

Being a nonimmigrant visa, the E-2 is temporary, so the holder must be planning to leave the U.S. when the visa expires. That said, as long as the E2 conditions are met, the visa can be renewed every two years.

E-2 Visa Investment Requirements

The main criterion of the E-2 visa is citizenship of countries that have a specific treaty agreement with the United States, such as Grenada, Montenegro, and Turkey.

Individuals who are not from treaty countries need to obtain citizenship from one of them, and reside there for at least three years before they can qualify for an E-2 visa.

Although there’s no strict minimum investment for starting an E-2 business, investing at least $100,000 is advisable to secure E-2 petition approval. Criteria for E-2 eligibility include:

• The enterprise must be a for-profit, non-marginal business.
• The investment capital must be at risk.
• The business should create at least five full-time jobs for U.S. workers within two years.
• The investor must have a direct role in the company’s management.
• A minimum of 50% of the company must be owned by nationals of the investor’s home country.

Procedure for E-2 Visa Application

For E-2 visa applicants outside the U.S., Form DS-160, Online Nonimmigrant Visa Application must be submitted to their nearest U.S. embassy or consulate. The application fee for Form DS-160 is $205.

E-2 investors within the U.S. are required to submit Form DS-156, Nonimmigrant Visa Application, to the U.S. Department of State. Nonimmigrant visa application processing fee under the E-2 category is currently $315.

There can be an additional biometrics fee of $85 for both forms. Required supporting documents include:

• Photograph(s).
• Passport and personal details.
• Proof of the business’s eligibility, such as a business plan and economic analysis.
• Proof of source of funds.

Once their applications are complete, E-2 investors need to attend an interview at their local U.S. consulate or embassy.

Following the approval of their applications, investors must file Form I-129, Petition for a Nonimmigrant Worker, which currently comes with a processing fee of $460. A new fee of $510 will be effective April 1, 2024. The approval process can take up to six months, after which the investor and their family receive their nonimmigrant E-2 visas.

Path to U.S. Citizenship via E-2 Investment

The nonimmigrant E-2 visa does not lead to naturalization as a U.S. citizen; only the EB-5 visa does that as an immigrant investor visa. However, an E-2 visa holder can petition for their E-2 case to be converted to an EB-5 case.

Transitioning from an E-2 to an EB-5 Visa

Upon transitioning their project to EB-5, the E-2 investor needs to fulfill a broader set of criteria, including raising the minimum investment amount to at least $800,000 and generating 10 full-time jobs, an increase from the previous requirement of five.

Comparing the EB-5 and E-2 Visas

Below is a comparison of the EB-5 Immigrant Investor visa and the E-2 Treaty Investor visa:

Feature	EB-5 Immigrant Investor	E-2 Treaty Investor
Minimum Investments	$800,000 – $1,050,000	~ $100,000
Eligible Persons by Relation	Dependent Family	Dependent Family, Certain Employees and Their Dependent Family
Residency Status	Permanent	Temporary
Path to Citizenship	Yes	No

Obtaining U.S. Citizenship Through Investment

Both the EB-5 and E-2 programs can be excellent routes for individuals seeking U.S. residency through investment, albeit with significant differences. Depending on factors like nationality, available funds, and interest in business management, prospective investors can weigh their options to decide which one better suits their family’s needs and preferences.

However, for investors with long-term plans to live, work and retire in the U.S., only the EB-5 visa provides a direct pathway to U.S. citizenship. If you are a foreign investor looking to move to the United States, book a call with our team to learn more about your permanent residency and citizenship options.