The EB-5 visa has become increasingly popular with F-1 students looking to remain in the U.S. after graduating. This is because it allows international students to go from F-1 student status to permanent resident status.
F-1 students who apply for an EB-5 visa and file for adjustment of status before completing their studies will have a “pending adjustment” status and may even receive their Green Card before graduation.
Still, lots of international students remain hesitant about the EB-5 route, mainly because it’s an investment immigration route and requires substantial capital. Many students see the minimum required investment amount—$800,000 for a project in a targeted employment area—and conclude that EB-5 is reserved for high-net-worth individuals and is out of their reach.
But this isn’t true. While the EB-5 requires a capital investment, it is not reserved for savvy entrepreneurs or high-net-worth individuals. You also do not need a million dollars in your account to qualify.
The program allows interested applicants to source their investment funds through several means, provided they’re legal, and you can provide relevant documents proving their lawfulness.
This article discusses why EB-5 is the best option for F-1 students and how they can finance their EB-5 investment.
Why EB-5 Is the Best Option for F-1 Students
How F-1 Students Can Finance Their EB-5 Investment
Transitioning From an F-1 Student to a Green Card Holder
Why EB-5 Is the Best Option for F-1 Students
Most F-1 students typically apply for post-completion optional practical training (OPT), which allows them to remain in the U.S. and work fulltime for up to one year (two years for STEM graduates) upon completing their studies. Then, they usually hope to find an employer willing to sponsor them on the H-1B route, which allows an additional stay of up to six years.
However, the H-1B visa is not a direct route to permanent residency. This option offers a limited stay and is tied to continuous employment. Furthermore, many H-1B workers have found themselves stranded following the recent massive layoffs by tech giants like Amazon, Google, and Microsoft.
As a result, many H-1B workers face uncertainty, and the H-1B route has become less appealing to F-1 students. Many F-1 students are now turning to EB-5 as a more beneficial alternative.
How F-1 Students Can Finance Their EB-5 Investment
The EB-5 program allows investors to finance their investments using funds obtained from diverse sources. It could be capital gains from the sale of a property, personal savings, a loan, or a cash gift from family or friends. F-1 students can finance their EB-5 investment using money from any of these sources or a mix of two or more.
We’ll look at some EB-5 investment financing sources in detail below.
Gifts From Parents or Relatives
One of the easiest ways F-1 students obtain funds for EB-5 investments is through cash gifts from their parents or relatives. Parents of international students who are prepared to spend lots of money financing their children’s education in the U.S. are often more than willing to spend a bit more to help their kids secure their future in the U.S.
F-1 students who want to participate in the EB-5 program can pool funds from their parents and relatives to make the required investment. The money must be given to them as a gift without the expectation of a repayment. To prove this, the donors must provide gift letters stating their relationship with the EB-5 applicant and that the money was freely given as a gift and not a loan.
Additionally, the F-1 student must provide relevant documents to show that their parents, relatives, or friends who gifted them the funds obtained the money via lawful means. They must provide a source of funds documentation for every person who contributed to the investment amount.
Inheritance
Sales of inherited assets is another easy way for F-1 students to finance their EB-5 investments. International students who have inherited property, trusts, or even investment portfolios from their parents or grandparents in their home country can liquidate their inheritance and use the proceeds to finance their EB-5 investment.
When financing EB-5 investments using inheritance, you must provide documentation showing that the inheritance is rightfully yours and that your relative or benefactor lawfully obtained the funds used in purchasing the inherited property.
To do this, you must work with both an EB-5 attorney in the U.S. and an attorney in their home country who is knowledgeable in local inheritance laws. The two attorneys will work together to facilitate the sale of the inheritance and the collection of the necessary source of funds documentation.
Loans
The EB-5 program allows investors to use secured or unsecured loans to fund their EB-5 investment. Loans are now a common source of EB-5 investment funds for F-1 students.
When using a secured loan for an EB-5 investment, you must provide documentation to show that you lawfully obtained the asset used to secure the loan.
However, if you’re borrowing funds from a non-traditional lender, you must provide a source of funds document showing how the lender got their funds, regardless of whether it is a secured or unsecured loan. And these lenders may be unwilling to provide the required documentation. This is why it’s best to borrow only from licensed financial institutions.
Personal Savings
Savings from personal income is a common source of EB-5 investment funds for students. This money is usually accumulated savings from past jobs in their home countries and OPT earnings.
Personal savings often only make up a limited part of the investment funds. As a result, savings are most often combined with other sources, such as cash gifts from relatives, sales of inherited assets, and loans, depending on which is available to you.
When using personal savings to finance an EB-5 investment, you must provide your employment letters, pay stubs, and tax records for every job you worked to earn the saved income. These documents are necessary to prove you lawfully earned the saved money.
Transitioning From an F-1 Student to a Green Card Holder
Because of the limitless career opportunities available in the country, many international students decide to remain in the U.S. after completing their studies. Traditionally, most go through the OPT to H1-B route, hoping their H-1B employer will sponsor them for an employment-based immigrant visa. However, this goal often doesn’t come to fruition, and many H-1B workers have had their American dream crushed in the process.
The EB-5 visa has now become a lifeline for many international students looking to settle in the U.S. This is because the EB-5 visa provides a more permanent solution, offering permanent residency and U.S. citizenship in a few years and unlimited opportunities for career advancement.
One of the first steps in the EB-5 process is getting in touch with EB-5 experts. That’s where EB5AN comes in.
EB5AN can guide you through the process of obtaining your EB-5 Green Card. In our 10+ years of experience, we have helped more than 2,300 families from 70+ countries relocate to the United States as lawful permanent residents. Our team has more than a decade of experience, and we offer our clients first-rate, low-risk EB-5 regional center projects with a 100% USCIS project approval rate.
To learn more about the EB-5 program and how it benefits international students, book a free one-on-one consultation with our EB-5 experts today.
