How to Become a U.S. Citizen through Investment

Read on for our detailed guide to the EB-5 and E-2 programs, two popular ways for foreign nationals to become residents of the United States. Participating in either program can also ease the transition from U.S. residency to full citizenship.

Here’s what we’re going to cover.

Obtaining U.S. Residency through Investment

There are several paths foreign nationals might take to become residents of the United States.

Two established and reliable choices are the EB-5 and E-2 visa programs. Both of these involve foreign immigrants gaining lawful resident status in the United States for themselves and their dependent family members.

To qualify for either program, a foreign immigrant must invest lawfully obtained funds in a U.S. business and stimulate economic growth by creating jobs.

The key characteristics of the EB-5 and E-2 visa programs are as follows:

EB-5 Program Summary

• Visa type: Immigrant.
• Minimum investment: $800,000.
• Outcome: You have the permanent right to live and work in the U.S.
• Nationality requirement: None; nationals from any country may apply.
• Job creation requirement: 10 full-time jobs.
• Qualifies you for citizenship application: Yes; five years after gaining permanent resident status.
• So spouse and dependent children qualify?: Yes.

E-2 Program Summary

• Visa type: Non-immigrant.
• Minimum investment: Unspecified, but usually at least $100,000.
• Outcome: You have a renewable work visa that gives you the right to live and work in the United States.
• Nationality requirement: Investor must come from a country that has an E-2 treaty with the United States.
• Job creation requirement: Unspecified.
• Qualifies you for citizenship application: No.
• So spouse and dependent children qualify?: Yes.

United States Citizenship and Immigration Services (USCIS) oversees both programs. Only the EB-5 Immigrant Investor Program leads directly to a Green Card and U.S. citizenship. E-2 applicants can choose to transition into the EB-5 Program and thereafter obtain citizenship.

Investing in an NCE

Both programs allow foreign nationals to invest in any business, as long as it is a new commercial enterprise (NCE) or a failing business that their investment will rescue.

Popular investments include those in the hotel, retail, construction, and restaurant industries, as these tend to produce abundant jobs.

The next sections explain the requirements and process for each program in greater detail.

EB-5 Immigrant Investor Program Requirements and Process

Pursuing a Green Card through the EB-5 Program is desirable for those who seek a direct route to US citizenship by investment.

The EB-5 Program has a high initial capital requirement, but it gives investors the ability to file for U.S. citizenship five years after becoming lawful permanent residents. An investor’s spouse and unmarried children under the age of 21 also qualify for Green Cards.

Processing times vary, but most EB-5 applicants should expect a wait time of several years to receive their Green Cards.

EB-5 Requirements

To obtain permanent resident status (a U.S. Green Card) through the EB-5 Immigrant Investor Program, an investor must fulfill the following criteria.

• Forms I-526E and I-829 must be approved by USCIS.
• The chosen enterprise must produce and maintain 10 U.S. jobs for a two-year period from the time of initial investment.
• The investor must show proof that the investment funds were lawfully sourced.
• The minimum EB-5 investment is $800,000 for a project located in a targeted employment area (TEA) or $1,050,000 for a non-TEA project.
• The foreign national must demonstrate direct or indirect participation in the management of the NCE.
• The investment must remain at risk the whole time.

EB-5 Process

Foreign nationals participating in the EB-5 Immigrant Investor Program can choose to make either a direct or a regional center investment. Regardless of the investment type, each EB-5 applicant must invest at least $800,000 in a project that creates at least 10 jobs for American workers.

• Direct investments: are made straight into an NCE, which is typically a U.S. business created after November 29, 1990. Direct investments enable the investor to be involved in the day-to-day operations of the NCE. They can only count full-time positions toward fulfilling the job creation requirement.
• Indirect investments: are carried out through EB-5 regional centers—economic entities authorized by USCIS to manage EB-5 funding. Investors in these projects typically have little involvement in operations. In addition to standard full-time positions, they can also count indirect employment toward creating the 10 jobs.

 
After making a qualified investment, a foreign national will need to file Form I-526, Immigrant Petition by Standalone Investor, or Form I-526E, Immigrant Petition by Regional Center Investor, depending on the investment option they select. Direct investors use Form I-526. Regional center investors use Form I-526E.

Each form requests approval from USCIS to be recognized as an immigrant to the United States. Upon approval, they will receive a conditional Green Card—that is, conditional permanent resident status—for two years.

If located within the United States at the time of application, the investor will also need to submit Form I-485, Application to Register Permanent Residence or Adjust Status. (EB-5 investors living in the United States can file I-485 petition along with the I-526E petition, which allows them to apply for a work permit and travel permit.)

If located outside of the United States, the investor should instead submit Form DS-260, Immigrant Visa Electronic Application, to their nearest U.S. consulate or embassy.

Shortly before the end of the two-year period, the investor must file Form I-829, Petition by Investor to Remove Conditions on Permanent Resident Status. If approved, in the investor will receive a permanent Green Card.

The wait time to receive a Green Card under the EB-5 Program can vary from as short as 11 months to many years, depending on factors such as the investor’s nationality and choice of investment project.

TEA Project Investments

The number of visas made available under the EB-5 Program is strictly limited, and the Immigration and Nationality Act restricts the number of available visas to no more than 7% of the total for each participating nationality outside of the United States. Most EB-5 applications come from only a few countries.

Thus, EB-5 applicants from high-demand countries like India and China may face visa backlogs and especially long wait times.

However, they can avoid processing delays by pursuing reserved visas.

Each fiscal year, 32% of EB-5 visas are reserved for individuals who invest in targeted employment area (TEA) or infrastructure projects. TEAs are either rural or high-unemployment areas in need of economic development. The allocations are as follows:

• 20% for rural TEA projects.
• 10% for high-unemployment TEA projects.
• 2% for public infrastructure projects.

The main benefits of investing in TEA projects are:

• A lower minimum investment of $800,000.
• Faster processing of Form I-526/I-526E.
• Access to reserved visas.

Investing in one of these projects can greatly accelerate the visa approval process for foreign nationals.

After all, the EB-5 program was created to stimulate economic growth and create jobs for American workers using foreign investment. Since rural and high-unemployment areas are in need of jobs, the United States incentivized investment in them by streamlining the approval process for EB-5 projects located there.

In addition, lower applicant demand for the available supply of visas allocated to TEA projects means there is increased visa availability for TEA project investors.

Regional Center Investments

Many foreign nationals find it is convenient to invest through regional centers, as they often pool funds from multiple investors, do not require day-to-day management decisions from investors, and enjoy greater flexibility in satisfying EB-5 job creation requirements.

Regional centers report to USCIS on project progress and jobs created. They also have a balanced capital structure that does not depend solely on EB-5 funds for completion.

E-2 Treaty Investor Requirements and Process

The E-2 Treaty Investor Visa Program was created to improve economic cooperation between the United States and other countries. An E-2 visa is meant for someone who wishes to enter the United States to develop and direct an enterprise in which the individual has invested or will invest a substantial amount of capital.

The E-2 visa is a suitable option for those who wish to live and work within the United States using a renewable, conditional work visa. Such foreign investors must possess citizenship in a qualifying treaty country.

A foreign national may hold citizenship in said countries by birth, marriage, or through investment programs.

E-2 Requirements

To receive a two-year renewable E-2 non-immigrant work visa, an investor must fulfill the following criteria:

• The foreign national must be a citizen of a country with which the United States has a treaty of commerce and navigation.
• The investor must own more than half of the company to qualify, and must work with this company exclusively while under the E-2 program.
• The investor must show proof that the investment funds were lawfully sourced.
• The investment needs to be “substantial” and remain at risk.
• The E-2 business must create U.S. jobs and be profitable; it should provide more than a minimal living for the investor and their family.

Even though the E-2 visa does not specify a minimum investment amount, participating individuals should plan to invest at least $100,000 to maximize their chances of success.

E-2 Process

If an E-2 applicant is filing from inside the United States, they must submit Form DS-156, Nonimmigrant Visa Application, to the U.S. Department of States. If the applicant is located outside of the United States, they must submit Form DS-160, Online Nonimmigrant Visa Application, to the nearest U.S. embassy or consulate.

The E-2 approval process is generally faster than that of the EB-5 program and can take anywhere from a few weeks to several months.

The E-2 non-immigrant visa is valid for an initial stay of only two years. Then, it becomes renewable in increments of two years, with no limit on the number of possible extensions, unless the investor renounces the visa or violates program rules.

Investors must be willing to leave the United States and relocate back to their home country promptly if the conditional non-immigrant visa expires.

Going from E-2 to EB-5 for a U.S. Green Card

It is possible to obtain a renewable visa for conditional permanent residency through either investment in an EB-5 enterprise or the E-2 investor process, but only the EB-5 immigrant visa can be used to file for U.S. citizenship. It is not possible to receive U.S. citizenship through investment in an E-2 business.

However, after obtaining a renewable visa for residency using an E-2 investment, a foreign national who then wishes to immigrate can choose to convert their E-2 visa to an EB-5 visa.

The investor must complete the entire EB-5 process to have their case redesignated as an EB-5 investment visa application.

Five years after an EB-5 investor has obtained their conditional EB-5 visa in the United States, they may file an application for U.S. citizenship.

The Procedure for Naturalization

Naturalization is the process by which a Green Card holder can apply for U.S. citizenship. To become naturalized, the foreign national must:

• File Form N-400, Application for Naturalization, for USCIS approval.
• Have held U.S. permanent resident status for at least five years, or have served in the U.S. military.
• Participate in an interview with USCIS.
• Pass an English language and U.S. civics test.
• Submit fingerprints and demonstrate proof of a clean criminal record.

The whole naturalization process can take over six months, after which the foreign national swears the Oath of Allegiance and fully accepts their new responsibilities as a citizen of the United States.

Privileges of U.S. Citizenship

As mentioned previously, EB-5 investors who have held permanent Green Cards for five years can apply for U.S. citizenship by investment.

The benefits that come with having official U.S. citizenship, whether by birth or through the naturalization process, are numerous. They include:

• The ability to vote in local, state, and federal elections.
• The ability to run for most public offices.
• The ability to obtain a U.S. passport and receive U.S. government aid while traveling overseas.
• Access to federal jobs, college assistance, and benefits programs like Medicare and Social Security.
• Faster processing of family members sponsored for Green Cards.

Responsibilities of U.S. Citizenship

The responsibilities that come with the benefits of citizenship include:

• Swearing allegiance to the United States.
• Giving up prior allegiance to any other country.
• Supporting and defending the Constitution and U.S. laws.
• Participating in the political process by voting in elections.
• Being subject to local, state, and federal tax laws.
• Serving on a jury if selected.
• Registering with the Selective Service (only for males between 18 and 25 years old).

Get More Information on U.S. Citizenship by Investment

Foreign nationals interested in obtaining US citizenship by investment should examine their options closely and be deliberate in meeting program qualifications throughout the adjudication process. It is also a good idea to consult with an immigration attorney.

EB5AN has helped more than 2,300 families from 60 countries relocate to the United States as lawful permanent residents. Our expert team has more than a decade of experience, and offers clients first-rate, low-risk EB-5 regional center projects with 100% USCIS project approval rate to date.

Schedule a free consultation with EB5AN for more information about EB-5 immigrant visas and the immigration process.