EB-5 and Tech Entrepreneurs: Why the Program Appeals to Startup Founders

For international entrepreneurs in the tech industry, securing a foothold in the United States can be both an exciting and daunting challenge. While the U.S. offers unparalleled opportunities for innovation, navigating the complex immigration landscape can often be an obstacle.

Among the various immigration options available, the EB-5 Immigrant Investor Program is a compelling route for tech founders, offering a path to permanent residency and long-term access to opportunities to grow or launch their business.

In this article, we will explore why tech entrepreneurs are increasingly considering the EB-5 program over other visa alternatives. We will also look at why it’s a smart option for H-1B workers who want to launch their own business.

Understanding the EB-5 Program

The EB-5 program was introduced by the U.S. government in 1990 with the primary goal of stimulating the U.S. economy through foreign investment.

This program grants a Green Card to foreign nationals who invest in U.S. new commercial enterprises that create jobs for U.S. workers.

To qualify for an EB-5 visa, the investor must meet some key requirements like a minimum investment amount and a job creation threshold.

Investment Amount: The applicant must invest a minimum of $1,050,000 in a U.S. new commercial enterprise—or $800,000 if the business is located in a targeted employment area (TEA).

Job Creation: To qualify as an EB-5 investment, the invested funds must create at least 10 full-time jobs for U.S. workers. A “job” in the EB-5 context refers to a full-time position, or one with at least 35 hours of work per week. These positions must also be permanent and year-round—seasonal or temporary jobs do not qualify.

The Appeal of the EB-5 Program to Tech Entrepreneurs

Once approved, EB-5 investors and their immediate family members (spouse and children under 21) are granted conditional permanent resident status for two years. After the two-year period, they can apply to have their conditions removed and achieve full permanent resident status if all the requirements are met.

While this process benefits many people seeking U.S. residency, for tech entrepreneurs, the EB-5 program offers several unique advantages that make it an increasingly attractive option for establishing or growing their business in the U.S.

Access to Capital and Business Expansion

One of the primary challenges faced by startup founders is securing the capital necessary to launch or expand their business.

Once an EB-5 investor receives their Green Card—or even earlier through concurrent filing—they gain the ability to start a business. In addition, permanent residency comes with several key advantages for this process.

Firstly, an EB-5 Green Card increases your access to financing. Most lenders are hesitant to lend to non-residents, and even those willing to lend to non-U.S. or temporary residents only tend to lend a small amount.

Holding a Green Card, however, demonstrates that you have made a long-term commitment to being in the country, and lenders are therefore more willing to trust you and offer favorable financing options.

The EB-5 visa has no geographic requirements, meaning you can live and work wherever. This flexibility also means you can start—and potentially expand—your business anywhere in the U.S. In other words, you can hand-pick the region and market in which you want to launch your venture.

Lastly, the ability to travel abroad means that you can continue to take advantage of any international connections or partnerships you’ve established.

Pathway to Green Cards: A Family-Oriented Benefit

The most significant advantage of the EB-5 program for entrepreneurs is the pathway it provides to a Green Card and eventual U.S. citizenship.

As mentioned above, a permanent resident of the United States enjoys the freedom to live and work anywhere in the country, in addition to access to a variety of professional and personal benefits. This is particularly appealing for international founders who are looking to establish long-term roots in the U.S.

Moreover, the EB-5 program is family-oriented. Investors can include their spouse and unmarried children under the age of 21 in their application, which means that the Green Card is granted to the entire family.

For tech founders, this is an especially appealing feature, as it allows their families to enjoy the benefits of living in the U.S. while pursuing their business endeavors.

No Need for a Job Offer or Sponsorship

Unlike other U.S. visa categories, such as the H-1B or L-1, the EB-5 program does not require entrepreneurs to have a job offer from a U.S. employer or secure any related sponsorship. This makes the EB-5 a particularly attractive option for founders who want to have complete control over their business venture without being beholden to a specific employer.

In contrast, most employment-based visas have limitations that may make them less appealing for entrepreneurs who want more flexibility in their business operations.

For example, with an E-2 visa (a non-immigrant visa for treaty investors), the investor must be from a country that has a treaty with the U.S. It is also a temporary status that does not offer a direct path to permanent residency.

Conversely, with an EB-5 visa, entrepreneurs can focus solely on growing their business without worrying about visa limitations or sponsorship, providing a significant advantage over alternative visas.

For Current H-1B Employees: Starting Your Own Business

For tech professionals currently on an H-1B visa, the EB-5 program presents an ideal opportunity to transition from being an employee to becoming an entrepreneur.

The H-1B visa, while providing the ability to work in the U.S., does not offer the flexibility needed to start and run a business—this is because the H-1B explicitly relies on employer sponsorship.

The EB-5 program, on the other hand, allows visa holders to not only gain a Green Card but also take full control over their career, including by launching their own company.

Many H-1B workers who have gained experience working in U.S. tech companies may feel the pull to start their own venture. By transitioning to an EB-5 visa, they can take advantage of a clear and structured path to achieving this goal without the need for visa renewals, employer sponsorship, or other limitations that come with the H-1B visa.

EB5AN Can Help Tech Entrepreneurs Obtain Green Cards

For tech entrepreneurs seeking to establish or expand their business in the U.S., the EB-5 program presents an appealing immigration pathway.

With the opportunity to access crucial capital, a direct route to a Green Card, and the freedom to run their business without the constraints of sponsorship or temporary status, the EB-5 program is gaining increasing popularity among startup founders.

Whether you are looking to expand your current business or transition from an H-1B employee to an entrepreneur, the EB-5 program offers the opportunity to build a sustainable future in the U.S. while creating valuable job opportunities for American workers.

EB5AN has helped more than 2,700 families from 70+ countries become lawful permanent residents of the United States. Our expert 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.

If you would like to know more about your EB-5 investment options, book a free call with our expert team today.