Hundreds of thousands of foreign workers are employed in the United States thanks to the H-1B visa. It’s the country’s most popular nonimmigrant work visa program.
However, H-1B workers can stay in the United States for no more than six years. They cannot count on job security. Between 2022 and early 2023, U.S. employers laid off around 85,000 H-1B visa holders. Even tech giants like Amazon, Google, and Meta have been affected.
H-1B workers continue to face uncertainty in a volatile job market.
Thankfully, there are ways to lessen this uncertainty. You can gain lawful permanent residency status in the United States by investing in a U.S. business. This is a great way for H-1B workers and their qualified family members to live and work in the country permanently.
This article will explain how a foreign national can go from an H-1B visa to a Green Card, including which investment options an H-1B holder should consider.
What Is an EB-5 Visa?
How Does the EB-5 Application Process Work?
- Understand the Investment Requirements
- File the Right Forms
- Meet the Job Creation Requirements
- What Are the Total EB-5 Costs?
- How Can H-1B Holders Fund an EB-5 Investment?
Consider Investing Through a Regional Center
Partner With EB5AN to Get Your EB-5 Visa
What Is an EB-5 Visa?
The EB-5 Immigrant Investor Program allows foreign nationals and their qualified family members (spouse and unmarried children under the age of 21) to gain Green Cards by investing in U.S. businesses. Each investment must create at least 10 full-time jobs for U.S. workers that last for at least two years.
For those who have the required investment capital, it’s a relatively fast and straightforward pathway to lawful permanent residency in the United States.
Applicants who are approved can live, work, and travel nationwide. They also become eligible for additional benefits that come with permanent residence, such as:
- Access to the U.S. healthcare system.
- Access to social programs like Medicare and Social Security.
- Access to U.S. public schools and discounted tuition rates.
- Improved job market access and employability.
- Improved likelihood of gaining U.S. citizenship.
Why H-1B Workers Should Invest in an EB-5 Visa
The EB-5 program offers some notable benefits over an H-1B visa.
Employment Flexibility
An H-1B worker who is terminated must find a new sponsor within 60 days. However, an EB-5 visa is not connected to your employment status.
As an EB-5 visa holder, you can work for any company without needing an employment sponsor. Applicants are typically able to negotiate higher salaries because their visas are not dependent on sponsorship. Under this program, you don’t even have to be employed.
Travel Flexibility
EB-5 visa holders gain much greater travel flexibility. They can leave and reenter the United States as often as they like, as long as they are physically present in the United States for at least six months out of the year.
Family Members Benefit
An EB-5 visa holder can also bring their immediate family members to the United States. Family members will gain the same benefits of permanent residency, such as work and educational opportunities.
Plus, an EB-5 visa holder’s children can keep their Green Cards after they turn 21, unlike the children of H-1B holders, who must apply for their own visas upon reaching that age.
How Does the EB-5 Application Process Work?
Thanks to the EB-5 Reform and Integrity Act of 2022, the EB-5 application process is now easier for H-1B workers. Most H1B visa holders are already legally present in the United States. They can apply to adjust their immigration visa status while still in the country.
Understand the Investment Requirements
One of the most important steps of the application process is to invest at least $1,050,000 in a new commercial enterprise (NCE). An applicant can save money by choosing a project located in a targeted employment area (TEA), which qualifies for a lower minimum investment amount of $800,000.
The money must be kept “at risk,” or invested in the business, for at least two years. This means you cannot withdraw money from this investment during this time frame. Qualified foreign investors will then receive conditional Green Cards.
File the Right Forms
To change your immigration status quickly under the EB-5 program, concurrently file your I-526/I-526E immigrant petition with Form I-485 to change your status to temporary permanent resident.
Applicants who are located outside the United States must go through consular processing first and file Form DS-260.
Meet the Job Creation Requirements
The main requirement of the program is that the investment create at least 10 full-time jobs for U.S. workers. If the investor has met these and other requirements at the end of the two-year conditional residency period, they can apply to have the conditions lifted on their Green Card.
Note that the entire process can take longer than two years, depending on the individual’s background and the type of project they choose to invest in.
You can familiarize yourself with the other steps of the EB-5 investment process here.
What Are the Total EB-5 Costs?
In addition to the minimum qualifying investment of $800,000 or $1,050,000, an EB-5 applicant will need to pay form filing fees. These include:
- Form I-526/I-526E fee: $11,160 (an additional $1,000 fee applies to I-526E applications).
- Form I-485 fee: $1,440.
- Form I-829 fee: $9,525.
Many EB-5 applicants also pay for other services that include:
- Hiring an immigration attorney.
- Working with a regional center.
- Translation services.
The total amount of each of these additional fees may vary considerably between individuals.
How Can H-1B Holders Fund an EB-5 Investment?
H-1B visa holders can fund their EB-5 investment using one or more of the following sources.
Personal Savings
Such as a high-yield savings account or checking account. High-yield savings accounts offer greater interest payments and are a good place for an emergency fund.
Retirement Accounts
Withdrawals from a 401k retirement account plan are possible, but watch out for an early withdrawal penalty. You may have to pay taxes.
Health Savings Account (HSA)
HSAs are known for their tax benefits, and allow you to get reimbursed for medical expenses with tax-free withdrawals from your account.
Other Investment Accounts
These can include equity market investments, mutual funds, ETFs, index funds, bonds, money markets, or an employee stock purchase plan. Withdrawals are not tax-free and you’ll be responsible for capital gains taxes.
Property Sales
Selling of real estate investments or other assets.
Gifts
Free money lawfully obtained from relatives or friends.
Home Equity Line of Credit (HELOC)
A secured loan that lets homeowners borrow money out of their home’s equity.
Securities-Backed Line of Credit
A loan that uses investment securities (such as stocks, bonds, or mutual funds) as collateral.
Other Loans
From a friend, family member, bank, financial institution, or any other lawful source, secured by the investor’s personal assets. Unsecured loans can also be used to fund an EB-5 investment, as long as there is sufficient source of funds documentation.
It’s a good idea for each applicant to hire a financial planner to help them with funding questions.
Consider Investing Through a Regional Center
EB-5 applicants can choose between two options for investing: direct or via a USCIS-approved regional center.
The overwhelming majority of applicants select the regional center investment option. This is a passive investment that doesn’t require day-to-day management from the applicant. Regional center-sponsored projects have easier job creation requirements, too.
However, direct investors must be actively involved in running the EB-5 project. Only direct jobs created by the EB-5 business can be counted towards the job creation requirement in this pathway.
Most H-1B visa holders are already employed and don’t have much extra time to devote to managing a business. The regional center investment model frees them of these responsibilities.
Partner With EB5AN to Get Your EB-5 Visa
Whether you’re an H-1B worker or not, it makes sense to work with an experienced EB-5 firm to ensure a smooth Green Card application process. It’s also wise 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 a 100% USCIS project approval rate to date.
Book a free call with us today to learn more about how you can become a Green Card holder under the EB-5 program.
