EB-5 IMMIGRATION INVESTOR PROGRAM
August 10, 2022 | John J. Pasquini
The United States Citizenship Immigration Services administers an immigrant investor program known as the Employment-Based Fifth Preference Visa Program (EB-5).
Under the EB-5 program, investors (their spouses and their unmarried children under 21) whose commercial enterprises create 10 permanent full-time jobs for legal workers are eligible for permanent residency.
The EB-5 immigration investor program was established in 1990 to stimulate job creation and capital investment by foreign investors. In 1992, Congress formed the Regional Center Program, which sets aside EB-5 visas for those who invest in businesses in targeted regional centers approved by the USCIS for economic growth.
EB-5 Requirements
Commercial enterprises formed after November 29, 1990, are eligible for EB-5 visas. Exceptions to the November 29, 1990, requirement:
- New businesses formed through the restructuring of a previous company.
- Commercial enterprises expanded through investment (resulting in a 40% increase in a business’ net worth or number of employees).
Types of For-Profit Businesses
The following “for-profit businesses” are eligible for EB-5 visas:
- Sole proprietorships
- Partnerships
- Holding companies and their subsidiaries
- Joint ventures
- Corporations
- Business trusts
- Limited liability companies
Job Creation Requirements
- EB-5 investors must create full-time positions for at least 10 legal workers employed no less than 35 hours per week for a minimum of two years.
- For a business not located within a regional center, the employer must directly generate and maintain full-time positions for qualifying legal employees.
- For a business located within a regional center for economic development, the employer may directly or indirectly create full-time positions. If indirectly created, 90% of indirect full-time jobs may be produced as a consequence of and outside the new business venture.
- For business ventures in existence for at least two years and suffering from hardship (a net loss of 20% for a minimum of 12 months), an EB-5 investor’s eligibility may be maintained by relying on job maintenance—the number of existing employees remains and is retained at no less than pre-investment levels.
Capital Investment Requirements
The capital investment requirement pertains to all real, personal, and tangible assets owned and controlled by the EB-5 investor. The minimum investment is $1,050,000 for high-employment areas and $800,000 for targeted zones such as rural or high unemployment districts (150% of the national unemployment rate).
An EB-5 investor may choose to invest in an infrastructure project (maintaining, improving, or constructing public works projects) in a targeted center as long as it is administered by a government entity like a Federal, State, or local agency or authority.
Immigrant Visa Set-Asides
The EB-5 program sets aside a certain percentage of visas for immigrants that invest in specific areas. Twenty percent of visas are set aside for rural development, 10% for high unemployment areas, and 2% for infrastructure projects.
Mutual Benefit
The EB-5 program benefits immigrants and the United States. Immigrants are blessed with the benefits of permanent residency and economic opportunity, and the United States profits from wealth investment and growth, particularly in its most vulnerable regions.
Source: USCIS. U.S. Department of Homeland Security. https://www.uscis.gov/working-in-the-united-states/permanent-workers/employment-based-immigration-fifth-preference-eb-5/about-the-eb-5-visa-classification/.