The EB-5 visa category is available to immigrants seeking to enter the United States in order to invest at least $1,000,000 or $500,000 in a Targeted Employment Area that will benefit the U.S. economy and create at least 10 full-time jobs. Initially, there were two options for investing within the EB-5 category: creating a new commercial enterprise or investing in a troubled business. Then, in 1992, Congress introduced the Regional Center program, which is how over 90% of EB-5 investment is made today. Below is a summary of the requirements for each alternative. All investments are made through the Regional Center program.
New commercial enterprise.
To qualify you must:
- Invest or be in the process of investing at least $1,000,000. If your investment is in a designated Targeted Employment Area (discussed further below), then the minimum investment requirement is $500,000.
- Benefit the U.S. economy by providing goods or services to U.S. markets.
- Create full-time employment for at least 10 U.S. workers. This includes U.S. citizens, Green Card holders (lawful permanent residents) and other individuals lawfully authorized to work in the United States. However it does not include you (the immigrant), or your spouse, sons or daughters.
- Be involved in the day-to-day management of the new business or directly manage it through formulating business policy – for example as a corporate officer or board member.
Targeted Employment Area is defined by law as “a rural area or an area that has experienced high unemployment of at least 150 percent of the national average.” For further detail click on the Laws section of this website and access section 203(b)(5)(B) of the Immigration Nationality Act (INA).
To qualify you must:
- Invest in a business that has existed for at least two years.
- Invest in a business that has incurred a net loss, based on generally accepted accounting principles, for the 12 to 24 month period before you filed the Form I-526 Immigrant Petition by an Alien Entrepreneur
- The loss for the 12 to 24 month period must be at least equal to 20 percent of the business’s net worth before the loss.
- Maintain the number of jobs at no less than the pre-investment level for a period of at least two years.
- Be involved in the day-to-day management of the troubled business or directly manage it through formulating business policy. For example as a corporate officer or board member.
- The same investment requirements of the new commercial enterprise investment apply to a troubled business investment ($1,000,000 or $500,000 in a targeted employment area).
Regional center program.
To qualify you must:
- Invest at least $1,000,000 or $500,000 in a regional center affiliated with a new commercial enterprise or a troubled business located within the area of the USCIS designated Regional Center. Regional Centers are defined and discussed further below.
- Create at least 10 new full-time jobs per investor, either directly or indirectly, through the capital investment.
A Regional Center is defined as any economic unit, public or private, which is involved with the promotion of economic growth, improved regional productivity, job creation, and increased domestic capital investment. The organizers of a regional center seeking the regional center designation from USCIS must submit a proposal showing:
- How the regional center plans to focus on a geographical region within the U.S., and how the regional center will achieve the required economic growth within this designated area.
- That the regional center’s business plan can be relied upon as a viable business model grounded in reasonable and credible estimates and assumptions for market conditions, project costs, and activity timelines.
- How in verifiable detail (using economic models in some instances) jobs will be created directly or indirectly through capital investments made in accordance with the regional center’s business plan.
- The amount and source of capital committed to the project and the promotional efforts made and planned for the business project.
A complete list of currently designated Regional Centers can be found on the USCIS website.
Please note, investment funds may come from any legal foreign or U.S. source including gifts, loans and divorce settlements. Immigrant investors must demonstrate a pattern of legal business activity, typically by providing tax returns, savings, investment and business records revealing a lawful source of funds.
Borrowed investment funds can qualify as long as they are secured by the borrower’s assets.
We understand that each investor’s personal financial and immigration situation is unique. Therefore, we advise prospective investors to seek independent professional advice regarding your EB-5 investment and visa petitions.
See the EB-5 Visa Process for obtaining your green card.