How to Plan for an EB-5 Investment

Foreign nationals seeking to relocate to the United States would do well to participate in the EB-5 program. To begin the process, foreign nationals need to make an EB5 investment in an eligible U.S. business and generate a minimum of 10 full-time jobs. They will eventually be entitled to apply for permanent resident status.

Furthermore, the EB-5 Modernization Rule is overturned as of June 22, 2021, meaning that the minimum amount for investing in a targeted employment area (TEA) project has decreased from $900,000 to $500,000. Non-TEA projects can now receive investments of a minimum of $1,000,000 as opposed to the previous amount of $1,800,000. However, the Modernization Rule could be reimplemented by United States Citizenship and Immigration Services (USCIS) or the Department of Homeland Security (DHS), so investors should act quickly to benefit from the reduced investment amounts.

The following suggestions will help foreign nationals plan for their EB-5 investments and carry out the process as efficiently as possible.

Gather Source-of-Funds Evidence

USCIS has a strict set of requirements in place when it comes to the source of funds of EB-5 investments. Investors must provide clear and extensive evidence in Form I-526 that outlines the sources of their funds and indicates that they are legal. Additionally, the required paperwork and documentation is different for each source of funds. For instance, an EB-5 investor who uses inherited funds will have to procure a copy of the will and documents showing the investor’s relationship to the deceased. In contrast, an EB5 investment made with stock proceeds will require purchase and sales contracts showing how the stocks came to be acquired.

Hire an Immigration Attorney

The investment risks and unfamiliar terms of the EB-5 program might be overwhelming for foreign nationals who are just learning about the EB-5 investment industry. USCIS might deny a foreign investor’s application or issue a request for evidence (RFE) if the EB-5 investment does not comply with the applicable regulations. To prevent this scenario, foreign nationals planning an EB-5 investment should make sure to work with a knowledgeable immigration attorney. Investors may also choose to hire an EB-5 consulting firm, which can help them to identify suitable projects.

Search for Reliable EB-5 Investment Projects

Foreign nationals interested in making an EB-5 investment need to do thorough research on each potential project. When assessing available EB-5 investment opportunities, they should favor projects that can be completed successfully even if there is a shortage of funds. Moreover, trustworthy EB-5 projects should be able to create the 10 required jobs per investor. Since investors must consider a plethora of criteria when choosing an EB-5 investment opportunity, industry experts such as EB5AN can offer invaluable guidance during the process.

Even though the EB-5 investment process is lengthy and requires meticulous planning, investors and their families will ultimately be able to enjoy the benefits of U.S. permanent resident status.