Terms of the EB-5 Program
Investing in a new business enterprise in the United States
The minimum investment amount is $800 000 (own business or Regional Center project)
Creation of at least 10 jobs through investment
Requirements for investors
- Legality of receiving invested funds
- No criminal record
Family
- Spouse
- Children under the age of 21
The US Congress established the EB-5 government investment program in 1990. But it became well known after the financial crisis of 2008.
Developers were forced to look for alternative ways to raise capital after banks’ lending rules became more strict. EB-5 visas in the United States have proven to be a valuable tool for replacing traditional financing in the construction of hotels, business centers, and residential complexes.
The US government is primarily interested in raising funds in the Targeted Employment Area (TEA), so there are a number of advantages for projects located in the TEA.
Targeted Employment Area (TEA)
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Rural area
A location with a population of 20,000 or less that is not part of a city or metropolitan statistical area (MSA) with a population of greater than 20,000.
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Low Employment Areas
The census tract’s unemployment levels are at least 150% of the national average unemployment rate.
Lower investment amount
$800 000 – for projects in TEA
$1 050 000 – for other projects
Set-aside visas
20% – for projects in rural areas
10% – for projects in census tracts with high unemployment
2% – for infrastructure projects
EB-5 Program options
Own Business — EB-5 Direct Investment Program
Direct Investment – Direct EB-5 Program
A participant in the EB-5 direct investment program can invest in their own company in the United States or in a franchise.
| Investment amount: | from $800 000 (TEA) / $1 050 000 |
| Investor participation in management: | active |
| Refund of capital: | depends on the success of the business |
| Obtaining a permanent green card: | depends on the implementation of the business plan and the creation of 10 jobs |
| Field of activity: | any |
| Job creation: | Tax forms demonstrating the employment of US residents working more than 35 hours per week |
| Business plan and project documentation: | prepared with the help of economists and lawyers for the project |
| Probability of the need to invest additional funds: | high |
| Additional costs: | services of an immigration lawyer, services of economists for drawing up a business plan and drafting project documentation, government fees, translations |
EB-5 Regional Center Program
Regional Centers
Regional Centers (RC) projects involve participation in larger projects, often in the field of commercial real estate, with the involvement of professional development companies.
| Investment amount: | from $800 000 (TEA) / $1 050 000 |
| Investor participation in management: | passive |
| Refund of capital: | in accordance with the subscription agreement with the Regional Center, the most common option is a refund of invested capital in 5 – 7 years |
| Obtaining a permanent green card: | depends on the implementation of the business plan and the creation of 10 jobs |
| Field of activity: | any, but in practice, regional centers primarily offer commercial real estate projects |
| Job creation: | provided by the Regional Center. Indirect jobs are taken into account, the creation of which is based on economic calculations and confirmation of expenses |
| Business plan and project documentation: | prepared by the Regional Center |
| Probability of the need to invest additional funds: | none |
| Additional costs: | services of an immigration lawyer, administrative fees of the RC, state fees, and a translation fee |
EB-5 visa statistics, issued based on Direct vs. Regional Center projects, 2013 – 2022
Why do investors choose EB‑5
- Obtaining the status of a Permanent Resident (a Green Card) for relocating to the US, doing business, employment, or investing in the United States.
- The opportunity for children, regardless of their parents, to obtain Permanent Resident status (Green Card) in order to stay and work in the United States after university.
- Investors and their families can obtain US Citizenship 5 years after obtaining Permanent Residency.
- No U.S. sponsor is required. A U.S. Government program EB-5 provides an opportunity for successful people to self-sponsor applications for a Green Card.
- Passive investment with Regional Center. The investment process is managed by U.S. professionals.
Process overview
Investment
1 – 6 months
Choosing a project, a lawyer, and preparing applications
Petition I-526
0,5 – 4 years
Business plan and personal documents of investor
Conditional Green Card
2 years
Residing in the US and obtaining a tax residence
Petition I-829
1 – 4 years
Proof of created jobs
Permanent Green Card
10 years
Green Card can be extended or citizenship can be obtained afterward
Regional Centers’ projects
Тhree-building apartment complex with 242 units
Colorado
A 210-room beach front hotel
Hawaii
Mixed use luxury resort and master planned community
California
Ultra luxury Condominium
Montana
A 167-key luxury hotel with entertainment complex
Florida
Construction of a residential complex
Florida
FAQ
EB-5 investment capital may come from a salary, dividends, loan, gifts, income, sale of assets, inheritance, investment, or other sources. The EB-5 investor is required to prove that the capital is derived from a legitimate source by providing tax return forms and bank statements to show the source of funds prior to the investment.
By law, the EB-5 Program does not offer a money-back guarantee. Depending on the chosen format of participation in the program, the refund on investment may depend on the ability of your own business to generate profit or, in the case of investing through the Regional Center, on the success of the project.
There are now a number of Regional Centers that can provide statistics on the refund of funds for their past projects. On average, you can expect a refund on your investment in 5 – 7 years.
Investing through the Regional Center allows investors to obtain a residence permit for themselves and their families on the basis of a passive investment. Participation in larger projects increases the likelihood of a refund, so the cost of participating in the EB-5 program can be less than $150,000.
Investing in your own business, in addition to high costs for the company itself, both financial and temporary, not only raises the question of a refund on investment, but may also require additional funds to provide 10 jobs. If it is impossible to maintain 10 jobs, there is a risk of losing both money and the ability to process documents.
The official processing time for I-526 petitions for all EB-5 investors, with the exception of Chinese citizens, is 52.5 months, according to data on the official USCIS website: https://egov.uscis.gov/processing-times/
The processing time is calculated based on the amount of work completed by the USCIS office earlier, including the pandemic period, as well as including those 9 months when the EB-5 program was on a technical pause (from June 2021 to March 2022).
According to our estimates, the actual processing time of petitions for investors who are applying now will be about 18-36 months.
Yes, In March 2022, the EB-5 Reform and Integrity Act (RIA) was brought into force. One of the changes included in the RIA is the possibility for what is referred to as a “Concurrent Adjustment of Status.” In simple terms, you may wait for your Green Card approval while staying in the USA so long as you have a valid visa of another type.
This option is available only for investors who are in the USA on another type of visa – E2, L1, H1B or B1/B2, for example. Read more here.
In case the investor and their family members do not have a visa to enter the USA, they still have to wait outside of the USA until their I-526 gets approved. Only after the I-526 petition has been approved will they be able to apply for their EB-5 visa and enter the USA.
Specialization exclusively for EB-5
The only company in the CIS with certified experts in the field of work by the EB-5 program.
Our expertise reduces your risk
Member of the United States Regional Centers Association (IIUSA). Statistics of the Regional Centers and information about the experience of lawyers.
Payment after receiving a Green Card
The principal amount for escort services is paid only after the client receives a permanent Green Card and a refund on their investment.
Data on the EB-5 program is available on the US Immigration Services (USCIS) website.
Is the EB-5 program right for you?
What are the Program’s requirements?
What are the immigration & investment process steps?
What is an EB-5 project and how to choose one?
What are the risk factors, and how to mitigate them?
What are the next steps if I am interested in moving forward?
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