EB-5 Program Overview

 

In 1990, under section 203(b) (5) of the Immigration and Nationality Act (INA), 8 U.S.C. § 1153(b) (5), Congress created the fifth employment-based preference (EB-5) immigrant visa category for qualified foreign investors seeking to invest in a business that benefits the U.S. economy by creating or preserving at least 10 full-time jobs.

The initial amount required for foreigners to invest is $1,050,000 USD, although that number is reduced to $800,000 if the investment is made in an area designated as rural or facing high unemployment. Approximately 10,000 green cards are available through the EB-5 program each year.

The Regional Center Pilot Program allows for a portion of allowable annual EB-5 Visas to be set aside for foreigners who apply through a USCIS (United States Citizenship and Immigration Services) approved Regional Center. In 1992, U.S. Congress created the Regional Center Pilot Program in order to promote immigration and investment through EB-5 and further encourage foreign investment in the United States.

A Regional Center is a private enterprise, corporation or regional governmental agency with a targeted investment program within a defined geographic region. The Regional Center program in many ways mirrors long active and successful investment-employment based programs in the United Kingdom, Canada, Australia, and other foreign nations. 

An investor seeking an EB-5 immigrant visa through a designated regional center must make a qualifying investment of $1,050,000 and demonstrate that at least 10 jobs were directly or indirectly created through the investment. However, certain rural and high unemployment areas (TEAs – Targeted Employment Areas) qualify for a reduced capital investment of $800,000.

A targeted employment area is defined as an area that has 1.5 times the national unemployment rate or a population under 20,000. California State Regional Center is a USCIS designated regional center that focuses primarily on investment opportunities for qualified projects located within targeted employment areas.

Using a USCIS approved job creation methodology, California State Regional Center develops and maintains detailed economic reports to measure and verify direct and indirect job creation for qualified projects.

Before participating in a Regional Center EB-5 investment program, each investor independently petitions USCIS for an EB-5 visa. Qualified investors investing through a Regional Center receive a conditional green card valid for two years. Upon receipt of conditional permanent resident status, the investor and immediate family are entitled to the same benefits as other lawful permanent residents. Once the conditions are removed at the end of the 24-month period, the investor and his immediate family become permanent green card holders and can later apply to become U.S. citizens. 

The investor, spouse and unmarried children (under age 21 at the time of petition) can then apply for permanent residency based on the investment.

The EB-5 visa is one of the most flexible paths to a green card available. The immigrant investor is not required to manage the business’ day-to-day operations, can invest in an existing business or a new business, and the investor is not required to live in the region where the investment is made. Additionally, funds may come from any legal foreign or US source; including gifts, loans, and divorce settlements. Borrowed investment funds qualify as long as the assets of the target US business do not secure the loan.

THE EB-5 INVESTOR PROGRAM

Each year, 10,000 EB-5 Investor Visas are available for foreign investors who:

Invest

Invest in a new commercial enterprise in the United States.

Create Jobs

Create and/or preserve at least 10 full-time, permanent jobs for qualified US Workers.

Through the EB-5 program, the investor and their family (spouse and unmarried children under 21) can obtain permanent residence status – allowing them to live, work, and study anywhere in the United States. After only 5 years the investor and their family can apply for US citizenship.

REGIONAL CENTER ADVANTAGE

99% of EB-5 Investors opt for a Regional Center investment

Relaxed active management
requirements

Typically a lower investment
requirement

“Indirect” jobs recognized in the job creation requirements

NEW VISA CATEGORIES

The new EB-5 Law (effective since March 2022), created three new EB-5  set-aside visa categories:

20%

For rural areas

10%

For high unemployment areas

2%

For infrastructure projects

EB-5 OVERVIEW TREE CHART

IMPORTANT NOTES

  • The EB-5 Regional Center Program is re-authorized through September 30, 2027
  • There is no minimum or maximum age for a Regional Center investor
  • Direct EB-5 Investments are limited to one investor per New Commercial Enterprise (NCE)

 

ARE YOU ELIGIBLE?

Anyone is eligible to use the EB-5 program to attain conditional residency as long as they can meet the investment requirement. See the details.

EB-5 ELIGIBILITY & REQUIREMENTS