EB-5 Program
The EB-5 program offers foreign investors a relatively quick and predictable path to a green card and permanent residency in the United States. To increase the chances of a successful outcome, it is important for potential investors to be aware of the program’s basic requirements
Investment Amount
The EB-5 program requires that participants make an investment of at least $800,000 into an EB-5 project. An investment of $800,000 must be made in a project or business that is located in a Targeted Employment Area (TEA). There are two types of TEAs. First, a location can be deemed to be in TEA if it is in an area of 20,000 or more residents that is experiencing an unemployment rate that is at least 150% of the national unemployment average.
Second, a location may also be deemed to be a TEA if it is a rural location. A rural location is an area that is not part of a Metropolitan Statistical Area (MSA) and has less than 20,000 residents. Projects that do not fall under either TEA requirement have a minimum investment amount of $1,050,000. The purpose of having a lower investment amount for TEAs is to encourage investment in areas that are more in need of economic stimulation.”
Investment Amount
The EB-5 program requires that participants make an investment of at least $800,000 into an EB-5 project. An investment of $800,000 must be made in a project or business that is located in a Targeted Employment Area (TEA). There are two types of TEAs. First, a location can be deemed to be in TEA if it is in an area of 20,000 or more residents that is experiencing an unemployment rate that is at least 150% of the national unemployment average.
Second, a location may also be deemed to be a TEA if it is a rural location. A rural location is an area that is not part of a Metropolitan Statistical Area (MSA) and has less than 20,000 residents. Projects that do not fall under either TEA requirement have a minimum investment amount of $1,050,000. The purpose of having a lower investment amount for TEAs is to encourage investment in areas that are more in need of economic stimulation.
Source of Funds
USCIS looks closely at where an EB-5 petitioner’s investment money originated. This is referred to the investor’s source of funds. As an overarching rule, a petitioner’s investment must come from a lawful source and cannot be the product of any illegal activity. Furthermore, an EB-5 petitioner will be expected to provide documentation that shows where the investment money has originated and prove that it was derived from a lawful source. This may also involve tracing the path of the funds that led up to the EB-5 investment. For example, an EB-5 petitioner may have used the sale of real estate to make the EB-5 investment. The investor would not only have to provide proof of the sale of real estate, but they would also have to demonstrate to USCIS that they purchased the real estate with lawfully obtained funds.”
Job Creation
To obtain a permanent green card, an EB-5 investor must prove that their investment led to the creation of 10 new U.S. jobs. For a direct project, the 10 jobs must be in place at the time the investor files their I-829 with USCIS to prove job creation and those 10 jobs must be directly employed with the job creating entity. For a regional center project, however, the project can produce more jobs than direct projects. The number of jobs a regional center project creates is based off an economic formula that considers a project’s construction spend and yearly revenue. It is not only credited with creating direct jobs, but also indirect and induced jobs. This takes into account jobs that are created in the project’s supply chain as well as the project’s economic impact on the surrounding community.
Conditional Green Gard
The EB-5 process requires that the investor is first granted a conditional green card before being able to earn permanent residency. A person on a conditional green card has the same rights and privileges as someone with a permanent green card. The conditional green card is valid for a two-year period, as opposed to the five-year period of a permanent green card. As the investor nears the end of their two-year conditional green card they will file an I-829 to prove that their investment has met the EB-5 job creation requirements. At the time the investor files their I-829, they will also file for an extension of their conditional green card. Investors can receive extensions on their conditional green card until their I-829 is adjudicated. When the I-829 is approved, the petitioner and their eligible family members will receive their permanent green cards.