Established in 1990, the EB-5 Immigrant Investor Program aims to stimulate economic development in the United States. By investing in a qualifying New Commercial Enterprise (NCE), EB-5 investors, along with their dependent family members, become eligible for an EB5 Green Card.

Participants in this program obtain lawful permanent residency in the U.S., with the opportunity to seek U.S. citizenship afterward.

However, interested individuals should first do some research into whether they qualify for a Green Card through investment. The EB-5 program eligibility depends on several factors, and understanding these factors can greatly benefit EB-5 investors throughout their application process.

In this article, we will explore the requirements to get a U.S. Green Card, specifically through the EB-5 Immigrant Investor Program.

EB-5 Green Card Eligibility

The two key criteria for EB5 eligibility are the minimum capital investment and participation in the New Commercial Enterprise (NCE) management. The necessary investment amount varies depending on the EB-5 project; an NCE located within a Targeted Employment Area (TEA) requires a lower investment amount than in areas outside of TEAs.

The source of the invested capital is not restricted, but it must be lawfully acquired, which is demonstrated through the EB-5 source of funds process. Additionally, the investor’s level of involvement in the NCE can differ based on the NCE’s organizational structure.

For all EB 5 requirements, sufficient evidence must be presented to the United States Citizenship and Immigration Services (USCIS), which operates under the Department of Homeland Security, to prove compliance with these conditions.

EB5 immigrant investors are not required to have prior business experience or training. There are also no education or nationality limitations.

EB-5 Investment and Job Creation Types

Prospective EB-5 investors have the option of selecting either direct or indirect (Regional Center) investment approaches. Regardless of this choice, all successful investments yield the same ultimate benefit: U.S. permanent residency. However, the choice of investment type can make a difference in the simplicity, ease, and feasibility of the EB-5 process. Investors need to fully grasp both alternatives before deciding.

EB-5 Job Creation

The primary difference between direct and Regional Center investments lies in job creation, so it’s important to understand this requirement before deciding on the investment type. Every EB-5 project must generate at least 10 jobs per investor. Depending on the investment route, these can be counted across three different employment types: direct, indirect, and induced jobs.

Direct Jobs

Direct jobs are created directly by the NCE, such as positions in construction or operations. Only full-time jobs can be counted towards this requirement. While part-time roles do not qualify, job-sharing arrangements may be acceptable.

Indirect and Induced Jobs

Indirect jobs stem from the investment’s economic influence on the local area, such as when the business’s purchases of materials and services create new jobs.

Induced jobs occur when employees spend their earnings locally, further stimulating the economy.

Direct EB-5 Investments

Only a minority of EB5 investors opt for direct investments, as this model only allows for direct jobs to be counted towards the job creation requirement. However, some investors who seek greater control over the day-to-day management of their EB-5 business favor this option.

EB-5 Regional Center Investments

The majority of EB-5 investors prefer the indirect investment route via a USCIS-designated EB-5 Regional Center, offering a more passive investment approach. This method allows for the inclusion of direct, indirect, and induced jobs in the job creation count, which makes it easier for investors to fulfill the EB-5 requirements.

How Much Does an EB-5 Green Card Cost?

Introduced in 1990, the EB-5 program initially required a capital investment of $1,000,000, with a reduced threshold of $500,000 for investments in Targeted Employment Areas (TEAs).

In 1992, the establishment of the EB-5 Regional Center Program offered an alternate pathway for investment. These investment minimums stayed the same until 2019, when the EB-5 Modernization Rule was enacted, raising the minimum investment to $1,800,000 for standard areas and $900,000 for TEAs.

In 2022, with the introduction of new legislation, the minimum investment amount for the EB-5 visa was reduced. The current minimum investment requirements are $1,050,000 for non-TEA projects and $800,000 for TEA projects, with public infrastructure projects also qualifying for the lower investment threshold.

TEAs are defined as areas in need of economic revitalization and job creation. Investing in a TEA costs less than in non-TEA areas, which helps regions in need of economic development attract more capital from foreign investors.

TEAs are categorized into rural TEAs and High Unemployment Areas. A rural TEA must have a population under 20,000, not be located next to a city with a population over 20,000, and lie outside a Metropolitan Statistical Area (MSA). High Unemployment Areas are characterized by unemployment rates of at least 150% above the national average.

How Long Should EB-5 Investors Keep Capital Invested?

The EB-5 timeline varies for each investor, but in some cases, the process can span several years. EB5 investors need to keep their investment committed to the business until project completion. Additionally, the investment must be “at risk,” meaning that the return of capital is not guaranteed.

Depending on whether the investor is already in the U.S. or not, they are eligible to apply for a two-year EB-5 Green Card following the approval of their I-526 or I-526E forms, or petition to adjust status at the same time as the I-526 filing depending on visa availability.

Investors are required to submit Form I-829 within the final 90 days of their two-year conditional residency. This form is used to demonstrate to USCIS that the EB-5 project has followed its business plan and fulfilled all requirements, especially in terms of job creation. Once approved, the investor receives a permanent Green Card, which can be renewed indefinitely.

How Many EB-5 Visas Are Available Each Year?

U.S. immigration processes are based on a quota system, limiting the number of visas available to foreign nationals annually. This system applies to the EB-5 Immigrant Investor Program as well, with the U.S. Department of State (DOS) determining the EB-5 visa allocation each fiscal year.

With the enactment of the EB-5 Reform and Integrity Act, the allocation rules were revised. Currently, 32% of the yearly EB-5 quota is set aside for TEA investments and infrastructure projects—20% for rural TEAs; 10% for high-unemployment TEAs; and 2% for infrastructure projects.

If any of these designated visas remain unclaimed by the fiscal year’s end, they carry over to the next year within the same categories.

Additionally, each country is limited to receiving no more than 7% of the total annual EB-5 visas. Countries with high demand often surpass the allocated number, leading to a backlog known as visa retrogression.

The new visa set-aside provision offers a significant advantage for EB-5 investors from backlogged countries, allowing them to bypass the waitlist and secure their EB-5 visas more quickly. As of March 2024, individuals born in Mainland China and India are facing backlogs in the unreserved categories, while set-aside categories are current for all EB-5 investors.

What Does the Visa Bulletin Mean?

During an EB-5 visa retrogression, the Department of State implements cut-off dates for applicants from the affected country to manage how they can proceed with their EB5 applications. These cut-off dates have two categories: final action dates and dates for filing.

Final action dates show the date when investors are eligible to receive an EB-5 Green Card. On the other hand, dates for filing indicate when investors can submit their applications to the National Visa Center for adjustment of status. The investor’s priority date is what determines how these dates affect them. Priority date is the day the USCIS receives an investor’s I-526 petition.

The Visa Bulletin, published monthly by the DOS, provides the cut-off dates for each country. If an investor’s priority date is earlier than the cut-off date listed on the latest Visa Bulletin, these limitations don’t apply to them and they can proceed with their EB5 immigration process. However, those with priority dates that come after the cut-off date must wait until a visa becomes available.

In the past, these backlogs meant long wait times for EB-5 investors from certain countries, like China and India. Today, with the new visa set-asides, foreign nationals can enjoy faster processing times regardless of their nationality.

By investing in one of the set-aside categories, investors can get their EB-5 Green Card faster than ever before.

How to Start the EB-5 Process

There are several decisions prospective EB-5 investors need to make before filing their I-526 petitions, like whether they want to invest directly or indirectly, which EB-5 project to invest in, how to structure their investment, etc. This is why it’s important for investors to work with the right EB-5 service providers and seek expert advice from immigration attorneys to avoid potential delays, denials, and loss of capital.

To discuss the case-specific details of how you can obtain a Green Card through investment, please schedule a call with our EB-5 team today.