The EB-5 Immigrant Investor Program is one of the fastest and most reliable ways for foreign nationals, as well as their eligible family members, to receive U.S. green cards and permanent residency status.
By making a capital investment in a qualifying EB-5 project, you and your immediate family can live, work, and study freely—anywhere in the United States.
The EB-5 visa process is complicated but it can be simplified with the help of an EB-5 professional like EB5AN.
In this article, we will break down the various steps of the EB-5 Visa Investment Program, as well as outline the most important updates regarding the EB-5 program for 2023.
Here’s what we are going to cover:
Our Guide To EB-5 Visa Investments In 2023
What Is an EB-5 Visa?
What Is an EB-5 Investment?
Fees – What You Can Expect from the EB-5 Program
The EB-5 Timeline
How Do You Apply for an EB-5 Investment Visa in 2023?
- Step 1: Invest in the right EB-5 project
- Step 2: Form I-526E
- Step 3: Conditional Permanent Resident Status
- Step 4: Form I-829
What to Look Out for When Making an EB-5 Investment
Have the Best Chance of a Successful EB-5 Investment with EB5AN!
What Is an EB-5 Visa?
An EB-5 visa is an immigrant visa issued through the EB-5 Immigrant Investor Visa Program, which allows entry into the U.S. and entitles the holder thereof to receive a conditional green card, for a period, followed by a permanent green card, without any conditions. A green card grants permanent residency in the United States.
Once a foreign investor’s EB-5 investment has been approved by United States Citizenship and Immigration Services (USCIS), the investor, their spouse, and their unmarried children under the age of 21 will be granted their two-year conditional permanent resident status in the United States.
At the end of the two-year conditional permanent residency period, USCIS will require an additional application to prove that:
- A minimum of 10 jobs were created per investor.
- The investment capital remained “at-risk” for the minimum two year period.
- The foreign investor met all other requirements of the EB-5 Program.
Once this additional application has been approved, the investor, their spouse, and all unmarried children under the age of 21 will have any “conditions” removed from their green cards, which allows them to become legal permanent residents in the United States.
What Is an EB-5 Investment?
An EB-5 investment refers to an investment in a project or business venture in the United States, via a program known as the EB-5 Immigrant Investor Program, or EB-5 Program, for short. This program provides a unique opportunity for foreign investors to invest in the U.S. economy and, in return, become eligible for a U.S. green card. But how does it work, and what should you know about it? Let’s dive into the details.
How EB-5 investments work
To participate in the EB-5 Program, an investment of $1,050,000 or $800,000 needs to be made in a qualifying investment permitted under the EB-5 Program expected to create the required number of jobs, via a qualified new commercial enterprise (NCE). In order for the lower investment amount of $800,000 to apply, the investment must be made in a project situated in a rural or high unemployment targeted employment area (TEA).
An NCE refers to a commercial enterprise that has been established after November 29, 1990, and is involved in for-profit activities performed as part of the ongoing conduct of a lawful business.
A TEA refers to a geographic area of the United States that either has high unemployment—150% above the national average as determined by the U.S. Census Bureau—or is a rural area as determined by the U.S. Office of Management and Budget.
Key Point: What Is the Minimum EB5 Investment Amount 2023?
When you invest in a non-TEA project, you will need to invest a minimum of $1,050,000.
If you invest in a TEA project, the minimum investment amount reduces to $800,000.
Your investment must also result in the creation or preservation of at least 10 full-time jobs for qualifying U.S. workers, per investor, within two years of the investment having been made available to the job-creating entity or the ‘JCE’ (the entity that owns and develops the project, and is responsible for creating the jobs)
Key Point: What Type of Jobs Need to be Created?
The types of jobs created through the EB-5 investment must be:
- Direct: These are identifiable jobs for qualified employees of the JCE.
- Indirect: These are jobs shown to have been created collaterally, or as a result of capital invested in a commercial enterprise affiliated with a regional center by an EB-5 investor.
- Induced: These are jobs that are created within the broader community as a result of income being spent on goods and services.
Ensuring that your EB-5 investment leads to the creation of these jobs is crucial for meeting the conditions of the EB-5 Program and realizing your goal of gaining permanent U.S. residency.
Benefits of EB-5 investments
Beyond the potential financial returns, an EB-5 investment unlocks several other benefits. Most notably:
Pathway to a green card: An EB-5 investment is a pathway to obtaining a U.S. green card, which allows you and your immediate family to live, work, or study anywhere in the United States.
Access to U.S. education: With a green card, your children can access the U.S. education system, including lower-cost in-state tuition at public universities.
Greater business opportunities: A U.S. green card can open up a wide range of business opportunities that might not be available to nonresidents.
As with any investment, it’s essential to do your research and perform due diligence before you jump at the opportunity. EB-5 investments can be complex to navigate and are subject to various U.S. laws and regulations, therefore it is advisable to consult with experts in the field and an immigration lawyer.
Key Point: What Are the Benefits of Investing in a TEA?
Investing in a TEA holds numerous advantages.
Reduced investment amount: If you invest in a TEA, the minimum required investment is significantly lowered. Instead of the standard $1,050,000, you only need to invest $800,000. This makes the EB-5 Program more accessible to a wider range of investors.
Contribution to community development: By investing in a TEA, you’re contributing to the economic growth and development of areas that are in dire need of investment.
Higher chances of approval: Projects located in a rural TEA receives priority status, which increases the likelihood of your EB-5 application being approved faster.
EB5AN has an up-to-date, interactive TEA map which shows whether a potential EB-5 project qualifies for TEA designation and the lower minimum investment amount.
All past and current EB5AN regional center projects are located in TEAs, with the majority of its current investment offerings located in rural TEAs.
Understanding the risk
Like any investment, an EB-5 investment comes with its own set of risks. These could include project failure, loss of capital, and immigration risks if the job creation or the sustainment of the capital investment requirements are not met. Therefore, it’s crucial to carefully choose your investment opportunity and ensure it aligns with your financial goals and risk tolerance.
Fees – What You Can Expect from the EB-5 Program
There are some specific fees that are associated with the EB-5 Program. These include USCIS filing fees, immigration attorneys fees, and processing fees.
- The filing fee for Form I-526E: The initial application for the EB-5 Program is $3,675.
- Form I-485: To adjust immigration status to permanent resident—this process’s filing fee varies, but it’s typically $1,140 for adults. The fee for children under the age of 14—when applying with at least one parent—is $750 each.
- The filing fee for Form I-829: To remove conditions from an investor’s conditional U.S. green card costs $3,750.
- A biometrics service fee of $85 is also required of each applicant.
The basic requirements for the EB-5 Program in 2023
The EB-5 Program offers a unique opportunity for foreign investors to obtain a green card, and with it the right to live and work in the United States. However, as with any immigration program, there are certain basic requirements that you need to fulfill to qualify for a green card. As an EB-5 visa candidate, here are the key criteria that you should be aware of:
Liquidity of capital
Investors must have enough capital at hand to make the EB-5 investment, as well as pay any administrative fees, legal fees, and filing fees. According to USCIS policy guidance issued on October 11, 2023, The invested capital amount of $1,050,000 or $800,000 must remain invested “for not less than two years” and until all the required jobs are created.
Source of funds
The investor must be able to prove through certified documentation that all the money used for their EB-5 investment was lawfully sourced, even if such monies were gifted or inherited.
Risk tolerance
An EB-5 investment is a real investment, which means the very real risk that the invested capital may not be returned, always exists.
The EB-5 Timeline
The EB-5 Program takes several years to complete, therefore, the ideal investor is someone who is looking toward their future, rather than seeking an immediate fix. Investors from mainland China and India should be advised that they may face significantly longer processing times due to visa retrogression, which means that the number of EB-5 applicants far exceeds the number of EB-5 visas allocated to a given country.
As of October 2023, 80% of I-526/I-526E petitions are adjudicated within 84 and 55.5 months for applicants from mainland China, and elsewhere in the world, respectively.
For the most up-to-date I-526/ I-526E processing times and priority dates for the issuance of Immigrant Visas, prospective and current EB-5 investors should refer to the Processing Times page on the official USCIS website, and the Visa Bulletin, respectively.
How Do You Apply for an EB-5 Investment Visa in 2023?
Applying for an EB-5 Visa involves a series of steps, which must be adhered to diligently. It’s a process that requires careful planning and the meticulous preparation of documentation. Below, we’ve outlined the general process to ensure you have a clear understanding of what is needed:
Step 1: Invest in the right EB-5 project
Finding the right EB-5 project to invest in often requires the help of an EB-5 professional or EB-5 regional center such as EB-5 Affiliate Network (EB5AN).
EB5AN has a nationwide network of USCIS-approved regional centers with projects available in rural and high unemployment TEAs, which qualify for a reduced investment of $800,000.
Working with a professional will help minimize your EB-5 investment’s financial risk and greatly reduce immigration risk.
Additionally, an immigration attorney typically files all petitions, forms, and documentation with USCIS on your behalf.
Wondering which EB-5 investment would work for you?
Consider our current rural and urban EB-5 projects. Details HERE!
Key Point: What Are the Investment Options for an EB-5 Investment in 2023?
There are two options for making an EB-5 investment: direct investment or regional center investment.
Direct Investment
Direct investment is for EB-5 investors who prefer to take a more active managerial role in a smaller EB-5 project. Direct investors cannot pool their money with other EB-5 applicants and can only count direct jobs toward their job creation requirement. Direct jobs are considered as those where employees work for the chosen job-creating entity into which the NCE invests the EB-5 capital under a W-2 tax form.
Most successful EB-5 applicants pool their investment through the EB-5 Regional Center Program, as being a regional center investor offers certain advantages for investors over direct EB-5 investment.
Regional Center Investment
By investing through a USCIS-approved regional center, regional center investors can pool their EB-5 capital into larger, and typically safer, EB-5 projects. Regional centers also allow investors to count both direct and indirect jobs toward their required 10 full-time jobs.
Indirect jobs refer to those whose employment is sustained by the business activities of the job creating entity, which owns the project, such as vendors, contractors, subcontractors, and more. EB-5 investments need to be made in new businesses that can reasonably be guaranteed to create at least 10 full-time jobs that last 24 months or longer.
Step 2: Form I-526E
An I-526E petition is the application to join the EB-5 Immigrant Investor Program. Depending on the nature of their EB-5 investment, an investor must file Form I-526E: Immigrant Petition by a Regional Center Investor – for regional center investors.
Since the passage of the EB-5 Reform & Integrity Act of 2022, USCIS now allows Form I-485, Application to Register Permanent Residence or Adjust Status, to be filed concurrently with Form I-526E for regional center investors.
Step 3: Conditional Permanent Resident Status
Once an investor’s I-526 or I-526E petition has been approved, the immigrant investor, their spouse, and any unmarried children under the age of 21 will receive conditional permanent resident status in the United States.
Conditional permanent resident status lasts for two years, with no option to renew.
Step 4: Form I-829
Form I-829, Petition by Investor to Remove Conditions on Permanent Resident Status, is the final step of the EB-5 program.
In the last 90 days of the two-year conditional permanent residency period, an investor files an I-829 petition with USCIS. Once this petition has been approved, the investor and all eligible family members will have the conditions removed from their EB-5 green card, which grants them full permanent resident status in the United States.
Should investors choose to do so, they can apply for U.S. citizenship after five years of permanent residency.
Key Point: How Long Will the EB-5 Visa Process Take in 2023?
The EB-5 visa investment process is one of the most certain ways for foreign nationals and their immediate family members to receive U.S. green cards. The process, however, still takes several years.
From start to finish, the EB-5 Visa investment process often takes four or five years for most investors to complete.
What to Look Out for When Making an EB-5 Investment
As with any investment, it’s crucial to understand the potential risks and rewards relating to the EB-5 Program before diving in. To help you navigate these issues, consider the following factors when making an EB-5 investment in 2023:
1. Regional centers
Countless investors favor investing through a regional center, primarily because it handles the investment and job creation requirements on the investor’s behalf. However, it’s essential to remember that not all regional centers are created equal. So, before you invest your hard-earned money, we suggest you take a few crucial steps:
- Start by investigating the success rate and track record of the regional center in question. This will give you a fair idea of their performance and reliability.
- Next, assess their communication and transparency practices. A good regional center will maintain open lines of communication and be honest about their operations.
- Finally, do a thorough check on their management team. Researching their level of expertise and experience in the relevant investment sector can provide you with much-needed peace of mind.
The EB-5 Program requires the creation of at least 10 full-time jobs. Be aware that indirect and induced jobs can also count toward this requirement if you invest through a regional center. Understand the project’s job creation strategy and make sure it aligns with the EB-5 Program’s rules.
2. Investment risk
Every investment journey is accompanied by its share of risks, and the EB-5 investment pathway is no different. U.S. Citizenship and Immigration Services (USCIS) stipulates that all EB-5 investments must be “at risk,” which implies that there’s no surefire guarantee of a return on your investment. However, don’t let this deter you. It’s vital to:
- Perform comprehensive due diligence on the investment opportunity you’re considering. This will help you understand the ins and outs of the project.
- Gain a solid understanding of the project’s financial health. This will give you a clear picture of the project’s stability and potential for success.
- Be aware of prevalent market conditions and possible challenges that may arise. Being prepared for these will help you navigate any potential hurdles.
3. Immigration timeline
Lastly, be cognizant of the EB-5 immigration timeline. The entire process can take years to complete, and there are no guaranteed time frames. Patience will be key, but make sure you’re aware of expected wait times and milestones to monitor your progress.
Making an informed EB-5 investment in 2023 means remaining vigilant about the processes and requirements involved, as outlined above. While the path can be complex, with the right preparation and understanding, it can also be a lucrative and rewarding journey toward permanent U.S. residency.
Key Point: What Is Due Diligence in the EB-5 Program?
Due diligence in the context of the EB-5 visa program refers to the comprehensive appraisal process that any potential investor must undertake before making an investment in a new commercial enterprise in the United States. The process involves a thorough investigation of all aspects of the proposed investment, particularly those that focus on the potential risks, legal compliance, and financial viability.
Key Areas to Focus on During Due Diligence
The due diligence process requires you to focus on several key areas to ensure that your financial and immigration risks are minimized, and the chosen investment is legitimate, and likely to bring the desired returns. These include:
Project viability: Assess whether the project you’re planning to invest in is financially sound and is likely to generate adequate returns to enable the return of your investment.
Legal compliance: Ensure that the project, the NCE and the regional center comply with all necessary legal requirements, including those specific to the EB-5 Program.
Risk assessment: Determine the potential risks involved in the investment and how they can be mitigated.
Job creation: Confirm that the project can create the required number of jobs, as job creation is a critical requirement of the EB-5 Program.
Have the Best Chance of a Successful EB-5 Investment with EB5AN!
The first step in applying for an EB-5 Visa is to find the right help. Without proper EB-5 consultation and guidance by proven professionals, an EB-5 investor can easily run into problems.
The EB-5 investment visa process requires very complex paperwork and extensive documentation. A single missing document can jeopardize an entire family’s chances of permanently living in the United States.
Furthermore, no two EB-5 applications are alike, which means that each application is subject to extra scrutiny by USCIS. The professionals who work for EB5AN have helped more than 2,300 individual foreign investors from more than 60 countries achieve their dreams of living in the United States.
The EB-5 Program offers an entire family the opportunity to permanently live, work, and study anywhere in the United States—without a visa sponsor—by means of a single passive investment.
With more than a decade of experience in the EB-5 Program, and a network of USCIS-approved regional centers across more than 20 U.S. states and territories, EB5AN is one of the leading independent sources of EB-5 information and consulting in the country.
Contact EB5AN today at info@EB5AN.com or schedule your free consultation and get started on your family’s EB-5 journey.
