Introduction
The EB-5 visa offers a path to a green card through investment in the United States in job-creating enterprises. This visa is suitable for those from an investor background who are looking to be eligible for a green card to become a permanent resident in the U.S. It is one of the five employment-based (EB) preference program visas approved for a green card.
This article provides insight into the eligibility, costs, benefits, and process of application necessary while applying for the EB-5 visa.
What Is an EB-5 Visa?
The EB-5 visa, also known as the EB-5 investor visa, was formed to create job opportunities by bringing in new capital to the American economy. This helped immigrant investors get a green card for permanent residence in the country and American workers to get employment.
As per the rules of the application for EB-5, the investor has to invest a certain amount of capital into a U.S.-based business that will cater to both Americans and work-authorized immigrant full-time workers.
The four dominating countries from which the majority of investors have come are China, Korea, the United Kingdom, and Taiwan. Additionally, some other countries with a good number of investors include India, Brazil, Nigeria, Vietnam, and Mexico.
However, the quantity of such visas issued is less in comparison to other visas. Annually, the visas issued through EB-5 petitioning for less than 1% of the visas have been issued. The impact of the program so far is that it has helped bring billions of dollars into the U.S. economy for several decades now.
Events such as the Great Recession of 2008 led to huge job losses for Americans. It was during this time too that many immigrant investors helped to stimulate the economy in such hard times.
Benefits of EB-5 Visa
Some of the benefits of the EB-5 visa are mentioned below:
Permanent Residency in America
While there is a complex process to obtain this visa, it provides access to a green card not just for the investor but also for their spouse and unmarried children under the age of 21.
Furthermore, receivers of this visa can stay, work, and study anywhere in the U.S. without restrictions through this visa.
Job Creation
In addition to getting a better future in the U.S., the process of investing also leads to creating new jobs for U.S. workers.
For instance, a company called the U.S. Immigration Fund (USIF) has helped to issue over 4300 EB5 green cards through which more than $2.5 billion in capital has been invested in the country.
Return on Investment (ROI)
EB-5 funding has great potential to provide its investors with a return on investment since the market size and value in the U.S. is among the largest in the world.
However, it is advisable to manage the project's risk and rewards, especially if the investment is going to be done through a loan-based model.
No Need for a Sponsorship
Unlike many of the other visa categories, the EB-5 visa does not require any sponsorship such as from an U.S.-based employer.
If you fulfill all the requirements and criteria for the visa, you can enjoy the benefits without the tedious search for a sponsor.
Eligibility for EB-5 Visa
The following are the key EB-5 visa requirements:
- Invest in a U.S. business where the amount is at least the minimum set by the government agencies.
- Have an intention to invest and maintain at least 10 full-time jobs in America for American workers.
Capital Investment
A minimum capital investment amount must be invested by the investor to be eligible for this visa as per 2022’s EB‐5 Reform and Integrity Act. This amount is now $1.8 million, the increase from $1 million due to inflation.
Furthermore, the minimum investment capital to invest in a targeted employment area (TEA) increased to a minimum amount of $900,000 from $500,000 after inflation.
Future adjustments will be tied to inflation as per the Consumer Price Index for All Urban Consumers every 5 years.
Job Creation
If a business is located within a regional center that supports economic growth, the investment needs to either lead to direct or indirect job creation.
However, if a business is located outside a regional center, then it must directly create the 10 new positions.
The policies also define troubled businesses with economic difficulties who are offered some allowances. Such troubled businesses are those that have been present for at least 2 years and have a net loss of at least 20% of their net worth.
What Is the EB-5 Visa ' s Processing Time?
The initial petition which is Form I-526 can be time-consuming as it can take from 47 months to 71 months.
Later on, for the green card to be approved, it takes 4 to 6 months via consular processing if the applicant lives abroad.
If the applicant already lives in the U.S., this process can take from 7.5 to 45.5 months as a decision needs to be made in the Adjustment of Status process.
EB-5 Visa Costs
The EB-5 visa cost ranges between $4020 and $4,900. This is dependent on where the applicant is filing from.
First, the applicant needs to file Form I-526 which fee is $3675. If the applicant has to apply through consular processing outside the U.S., they will need to pay $345 extra as a visa application processing fee. This makes the total of $4020.
In the case of the applicant applying within the U.S., they need to additionally pay $1140 to file Form I-485 along with an $85 biometrics fee. This makes the total to be $4900.
In addition, you might expect a couple of thousand dollars in expenses if you decide to have your case led by immigration attorneys.
How to Apply for EB-5 Investor Visa
The EB-5 process for the application of the investor visa is given below:
- File for Form I-526, Immigrant Petition by Standalone Investor, or Form I-526E, Immigrant Petition by Regional Center Investor.
- Once USCIS approves Form I-526 or Form I-526E petition, file for DS-260, Application for Immigrant visa and Alien Registration seeking an entrance to America.
- File for Form I-485, Application to Register Permanent Residence or Adjust Status to adjust status for permanent residence in America.
- Within 90 days, file for Form I-829, Petition by Investor to Remove Conditions on Permanent Resident Status.
- If USCIS approves this petition, they will remove the conditions from the lawful permanent resident status and from that of any dependents.
Types of Other Employment-Based (EB) Visa Categories
The different EB visa categories are:
- EB-1: Exceptional Ability
Individuals who have exceptional abilities or professional expertise in areas like science, art, business, education, or athletics fall into the first preference category.
- EB-2: Advanced Degree or Exceptional Ability
Individuals with exceptional educational degrees like a Master’s degree, Bachelor’s degree, or at least 5 years of progressive work experience fall into the second preference category.
- EB-3: Skilled, Professional, or Other Workers
Workers or professionals with baccalaureate or foreign equivalent degrees and the ability to work for a job that is not seasonal fall under the third preference category.
- EB-4: Special Immigrants
The fourth preference category includes special immigrants such as religious workers or ministers.
Conclusion
The EB-5 visa presents a unique opportunity to acquire permanent residency in the US by making the right investment in the U.S. Yet, applicants need to consider the significant investment they need to make along with sound planning for the success of the application.
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FAQs
Around 10,000 visas are reserved and issued each year.
The minimum EB-5 investment amount is $1.8 million. Also, the minimum investment capital to invest in a targeted employment area (TEA) is $900,000.
The EB-5 TEA or targeted employment areas refers to the specially designated areas for employment in the United States.
The organization designated by the United States Citizenship and Immigration Services (USCIS) to create jobs from immigrant investments can be known as an approved EB-5 Regional Center.
Investors invest in a project sponsored under the authority of the EB-5 Regional Center in a regional center-based EB-5 investment. Whereas, investors directly invest in a new business or a troubled business in regular EB-5 investment.
A "lawful source of funds" refers to determining whether the investments made for EB-5 visas have come from legal sources or not.
You can make investments in regional center programs, new commercial enterprises, or simply by evaluating investment terms.
EB-5 priority dates cannot be transferred from other visa categories.
No, EB-5 immigrant investors do not get a fast track to citizenship due to a lengthy wait time.
The EB-5 Reform and Integrity Act of 2022 is a reform that made several changes for regional centers and investors for potential enhancements of the EB-5 visa. It made the program stricter by raising investment amounts but also offered some benefits like allowing investment anywhere in the US and prioritizing rural areas.
The EB5 success rate is 75% to 80%.
It is not necessary to have an EB-5 lawyer to be successful but they can help to navigate the process which might seem complex for some people.
The main disadvantages of the EB-5 visa are that it requires a hefty investment and the waiting time can be extremely long.
The job creation requirement is very strict since one of the key objectives of this program is to create jobs in the U.S. economy.
Yes, EB-5 investors can bring their families, including their spouses and unmarried children under 21 years of age.
Yes, it is possible to get a loan for an EB-5 visa meeting the requirements and obligations.