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What Are the Investment Requirements for the EB-5 Visa Program?

The EB-5 visa program is a popular immigration program that offers foreign investors the opportunity to obtain permanent residency in the United States. In exchange for investing a significant amount of capital in a new or existing American business, the program enables investors and their families to gain permanent residency status in the US.

Investors who want to apply for the EB-5 visa program must meet certain investment requirements. These requirements are established to ensure that the program’s primary objective, job creation, is met.

Minimum Investment Amount

The first requirement that investors must meet is the minimum investment amount. The minimum investment amount for the EB-5 program is $1.8 million for non-Targeted Employment Areas (TEAs). In contrast, for Targeted Employment Areas (TEAs), the minimum investment amount is $900,000.

A Targeted Employment Area is defined as an area that has an unemployment rate that is at least 150% of the national average or is a rural area. By investing in a TEA, investors can access the program’s lower investment threshold of $900,000, which makes the program more accessible to a broader range of investors.

New Commercial Enterprise

The second requirement is that the investment must be made in a new commercial enterprise. A new commercial enterprise is defined as a business that was established after November 29, 1990, or an existing business that has been restructured or expanded in a way that results in a 40% increase in the net worth or number of employees.

The new commercial enterprise must also be engaged in a for-profit business that is legal under US law. The business can be involved in any industry, as long as it is lawful and not involved in any illegal activity.

Full-time Job Creation

The third requirement is that the investment must create or preserve at least 10 full-time jobs for US workers within two years of the investor’s admission to the United States. These jobs must be direct jobs, meaning that they must be created within the new commercial enterprise. Alternatively, they can be indirect jobs created through the business’s use of goods or services from other US businesses.

The jobs must be full-time and be held by US citizens, permanent residents, or other authorized workers. The investment must also be maintained for a period of at least two years after the investor’s admission to the United States.

At-Risk Investment

The fourth requirement is that the investor’s capital must be “at risk.” This means that the investor must demonstrate that their investment is not a loan and that there is a risk of losing the investment capital. The investor’s capital must also be invested in the new commercial enterprise before the investor’s conditional residency status is granted.

Lawful Source of Funds

The fifth requirement is that the investor’s investment must be made using lawful funds. The investor must provide evidence that the funds used for investment were obtained through lawful means, such as employment income, business profits, sale of assets, or gifts.

If the funds are obtained through gifts, the investor must provide evidence that the gift-giver obtained the funds through lawful means. If the funds are obtained through a loan, the investor must provide evidence that the loan was secured by assets owned by the investor, and the investor is personally liable for the loan.

Investment Options for EB-5 Visa Program

Foreign investors looking to participate in the EB-5 visa program have two primary options for making their investment: direct investment and investment through a regional center.

  • Direct Investment: This involves investing directly in a new or existing American business. The investment must create at least 10 full-time jobs for US workers within two years of the investor’s admission to the U.S. This option requires a minimum investment of $1.8 million. Investors who choose this option must be actively involved in the day-to-day management of the business.
  • Investment through a Regional Center: This option involves investing in a regional center that is approved by the USCIS. Regional centers are designed to promote economic growth and job creation in the U.S. by pooling funds from multiple investors and using them to fund development projects that create jobs. The minimum investment for this option is $900,000 if the investment is made in a targeted employment area (TEA), which is a rural area or an area with high unemployment rates. If the investment is not made in a TEA, the minimum investment is $1.8 million. This option allows investors to count indirect job creation towards the ten-job requirement and also allows investors to be passive participants in the investment.

The Investment Process for EB-5 Visa Program

The investment application process for the EB-5 visa program is as follows:

  1. Find a Suitable Investment: The first step is for the investor to find a suitable investment that meets the EB-5 program requirements. This can be done by working with a qualified immigration attorney or by conducting research on their own.
  2. Make the Investment: Once the investor has identified a suitable investment, they must make the required investment. This investment must be made using lawful funds, and the investor’s capital must be “at risk.” This means that there is a chance that the investment could be lost.
  3. File Form I-526: After the investment is made, the investor must file Form I-526 with USCIS. This form provides evidence that the investment was made in a new commercial enterprise that meets the job creation requirement, and that the investor’s investment was made using lawful funds.
  4. Conditional Residency: If the I-526 petition is approved, the investor can apply for conditional residency by filing Form DS-260. This form is filed with the National Visa Center and requires the investor to attend an interview at a U.S. embassy or consulate in their home country. If approved, the investor will receive conditional residency in the U.S. for two years.
  5. File Form I-829: Within 90 days of the two-year conditional residency period ending, the investor must file Form I-829 with USCIS. This form provides evidence that the investor maintained their investment in the new commercial enterprise and created or preserved at least 10 full-time jobs for U.S. workers. If the I-829 petition is approved, the investor will receive permanent residency in the U.S