Is EB-5 Worth It? An In-Depth Look

For decades, foreign nationals have invested in the EB-5 Immigrant Investor Program to obtain a U.S. Green Card. In return, their investments stimulate economic growth and job creation in the United States. It’s a win-win situation.

The typical minimum EB-5 investment amount is $1,050,000. However, an EB-5 project in a targeted employment area (either a rural area or a location with high unemployment) is eligible for a discounted rate of $800,000.

This is a large sum of money, and it’s no surprise that many potential investors ask, “Is EB-5 worth it?”

We’ll answer that question—along with others about the specific financial, personal, and professional reasons to be an EB-5 investor—in the article below.

Why Invest in an EB-5 Visa?

The EB-5 visa is an immigrant visa. The main reason to invest in the EB-5 program is to obtain a Green Card in exchange for providing a lawful source of foreign investment for U.S. economic development projects that create jobs.

If making a huge financial gain is your top goal, the EB-5 program probably isn’t the best option for you. The typical EB-5 project yields a financial return on investment far lower than that of many index funds.

However, if you want a direct path to lawful permanent residency in the United States, the EB-5 program is one of your best choices. And thanks to the EB-5 Reform and Integrity Act of 2022, the investment process is now easier, faster, and safer than ever for an EB-5 applicant.

E-2 Applicants Take Bigger Risks for Smaller Gains

Contrast this with the E-2 nonimmigrant visa. To apply, you must be from a country that maintains a qualifying treaty of commerce and navigation with the United States.

You must also invest at least $100,000 (and potentially more depending on the type of business), usually in a riskier business, and you still won’t get lawful permanent residency in the United States if approved.

Low-Risk Investments

About 95% of EB-5 investors work with regional centers. That’s partly because regional centers tend to offer their clients low-risk projects.

Low-risk projects are more likely to fulfill the EB-5 program’s requirements. One of the most important of these is creating at least 10 full-time jobs for American workers that last at least two years.

Regulations and Guarantees Provide Additional Protection

In addition, the United States Citizenship and Immigration Services (USCIS) approves each EB-5 regional center. Regional centers continue to follow USCIS regulations, which further reduces associated risks for investors. Some will even offer third-party guarantees on your investment.

The regional center program is a great choice for investors who want to maximize their chances of receiving Green Cards.

Don’t Expect Record Profits

However, a low-risk project also means that financial gains will be low. Investors should not expect to earn more than about 0.5% to 2% returns on their investment.

Of course, it’s possible to earn more than this with an EB-5 project, but doing so may involve investing in higher-risk projects or keeping your money invested for longer periods of time.

Again, it’s also possible to get only some or none of your money back.

Indirect Financial Reasons to Invest in an EB-5 Visa

Foreign investors and their families can also receive a variety of indirect financial benefits under the EB-5 program.

Save Money on Education

Green Card holders get access to the world-class educational system of the United States, from kindergarten through graduate-level studies. In particular, they can study at much more affordable prices than international students pay.

Lawful permanent residents become eligible for significant cost savings on tuition at selected institutions of higher learning. The greatest savings can be found at public universities, which include the University of California at Berkeley, the University of Michigan-Ann Arbor, and the University of Virginia, to name a few. To qualify for in-state tuition rates, you generally must be a resident of the same state as the public university where you intend to enroll.

A lawful permanent resident can save $100,000 or more on a four-year degree earned at a public university in the same state where they reside. Always check the university’s policies on residency requirements to be sure.

Flexible Employment Opportunities

Let’s compare the H-1B visas and EB-5 Green Cards to illustrate the advantages of the EB-5 program.

An H-1B visa limits the employment options of holders in the following ways:

• An H-1B holder can work only for a sponsoring employer.
• Their employer must apply to employ H-1B workers.
• H-1B workers can work only in certain roles in certain industries.

However, an EB-5 Green Card allows its holder to work in nearly any role in almost any industry. This means obtaining one will give you greater freedom to target jobs that offer higher wages and better benefits.

The EB-5 Green Card will also stay with you regardless of your employment status. That’s not the case with the H-1B visa; an H-1B visa holder who is laid off must find a new qualifying position in just 60 days, except under very specific circumstances. Otherwise, they will fall out of status and may have to depart the U.S.

Personal and Professional Reasons to Invest in an EB-5 Visa

The EB-5 program is more than a relatively fast, easy way for foreign investors to gain lawful permanent residency in the United States. Green Cards also open up a new world of personal and professional opportunities for its holders.

Your Spouse and Dependent Children Also Qualify

Unlike some other visa categories, the EB-5 visa allows a participating investor to extend the benefits of lawful permanent residency to their spouse and unmarried children under the age of 21. These family members receive Green Cards too, and may live, work, and study in the United States freely.

Freedom to Travel

Lawful permanent residents enjoy much more travel flexibility than visitors to the United States. EB-5 visa holders can travel in and out of the United States freely, as long as they keep their residency status. You can do this by residing in the United States for at least six months out of each year.

Eligible EB-5 investors already in the U.S. can also benefit from concurrent filing. This allows them to apply to adjust status at the same time as submitting their initial EB-5 program petition. This way, they can get a conditional Green Card sooner. They can also concurrently file for an advance parole (AP) travel permit, which allows them to travel abroad while their application is processed.

Access Social Programs

Green Card holders can become qualified to receive a variety of benefits from private and government assistance programs. If you fall on hard times, your access to aid programs will increase. Potential benefits and services can include Social Security, Medicaid, Medicare, and retirement pensions.

Get Closer to Citizenship

An individual who has held an EB-5 visa for at least five years may apply for U.S. citizenship via the naturalization process. Citizenship grants other privileges, such as:

• Voting rights in local, state, and federal elections.
• Ability to get a U.S. passport and associated travel and assistance benefits.
• Opportunities to apply for federal employment, educational aid, and other benefits.
• More efficient processing of relatives approved for Green Cards.
• Opportunities to run for elected office.
• Greater legal protections and rights.
• Tax credits, grants, and other benefits.

Improve Your Quality of Life

U.S. residency means you’ll live in a prosperous and business-friendly country that offers political stability. The United States has the strongest economy and currency on the planet.

Many of the world’s top financial, technology, and business ventures call the U.S. home. You’ll have plenty of opportunities to network and access the latest innovations in the United States.

You can see why so many foreign nationals have sought the EB-5 program as a gateway to the key benefits of U.S. permanent residency.

But to get your Green Card, you’ll need help from professionals.

EB5AN Can Help You Decide Whether EB-5 Is Right for You

The EB-5 program is a worthwhile investment for a qualified foreign national applicant who aims to establish permanent residence in the United States. It’s a relatively low-cost and high-value immigrant visa. You and your family can gain access to tremendous personal and professional opportunities.

However, it’s a complex process that requires expert guidance. You can save yourself time, effort, and money by working with an experienced immigration lawyer and a top-notch EB-5 consulting firm if you’re considering this Green Card route.

To learn more about whether the EB-5 program is the right fit for you, book a free call with EB5AN today.