Investment Immigration (EB-5 Visa) - FAQs
- What is a direct EB5 investment
- What is the EB-5 Immigrant Investor Pilot Program?
- What are Regional Centers?
- Which are the benefits of investing through the Regional Centers?
- What is the procedure for applying for an EB-5 Visa?
- What does the EB-5 visa application process involve?
- What kind of immigration status will I receive with an EB-5 Investor Visa?
- What kind of immigration status will my family receive if they join me in the U.S?
- Can all the invested funds be a gift?
- Does the entire amount of the investment have to be made at the time of filing the EB-5 petition?
- Can two or more investors qualify for the immigration status based on a combined investment in a single business?
- What is a 'target employment area'?
- How long does the EB-5 process take?
- Can I travel in and out of the US once my visa is granted?
A direct EB5 investment is when the foreign investor has invested:
- In a new commercial enterprise (can be existing business);
- Invested funds must be the individual’s, but may be a gift from a parent or other person, provided the appropriate gift taxes are paid, if required;
- The sum of $1.8 million or $900,000 if the business is located in a “Targeted Employment Area” (TEA)
- The business must have been created after November 29, 1990 or the investment must substantially change an older business;
- Create full time employment for no less than 10 qualified individuals – no direct job creation is required if the investment is in a “Regional Center” (see below).
Whether the business is located in a TEA is determined by the designation of the location as a rural area or high unemployment area. A rural area is defined as an area that is not within either a metropolitan statistical area (MSA) (as designated by the Office of Management and Budget) or the outer boundary of any city or town having a population of 20,000 or more. An area can be designated as a TEA based on high unemployment if it has experienced unemployment of at least 150% of the national average rate as determined by the Bureau of Labor Statistics.
USCIS has created the EB5 investment Pilot Program whereby 3,000 immigrant visas are set aside for those who invest $900,000 in a Regional Center.Back to EB5 FAQs
Regional Centers are designated as “any economic unit, public or private, which is involved with the promotion of economic growth, including increased export sales, improved regional productivity, job creation, or increased domestic capital investment.
The USCIS has approved a large number of Regional Centers. An approved Regional Center can be any public or private economic entity which fosters the development of private-sector projects funded by foreign investors. If an investor was to invest in one of these regional centers, the investor will not need to prove the creation of jobs for 10 US workers. The creation of indirect jobs (jobs created as a result of capital invested) is sufficient. Back to EB5 FAQs
The investment through the Regional Center offers the following benefit:
Passive investment of $900,000 in a “Targeted Employment Area” (TEA) with a designated Regional Center
- Investor can be a limited partner with no requirement to run day-to-day management (ideal for retirees or inactive investors)
- Projects are already approved by USCIS and therefore the investor need not present a business plan for example
- Investor can live anywhere in the United States
- No requirement to prove direct job creation, but rather indirect job creation through investment in the Regional Center
An EB5 investor will file an immigrant petition by alien entrepreneur with USCIS and will obtain a two year conditional residency upon approval of the Petition with USCIS. The investor can then apply for adjustment of status, if in the United States and in legal status, or for an Immigrant visa if overseas. Prior to the expiration of the conditional residency, the foreign investor will have to file another petition with USCIS to obtain lifetime residency which is a process to reconfirm that the required investment has been made and 10 jobs have been created (depending if the investment is made with a Regional Center). Back to EB5 FAQs
The first step would be filing an immigrant petition with the USCIS. Once the petition is approved, the investor may either apply for an immigrant visa, or, if the investor is in the United States, apply for an adjustment of status. Obtaining EB-5 status is a very complex process; the petition must be supported by a substantial amount of documentation proving that the investor meets all of the requirements.
Vazquez & Poudat has a dedicated and experienced team in place to assist you with assembling all the necessary elements for the EB-5 petition and application. Contact us today!
EB-5 Investors are granted conditional permanent resident status, which is valid for up to two years. You can remove the conditions by filing an application during the 90 day period preceding the end of the two years. Our immigration attorneys can assist you with this process when the time comes. Back to EB5 FAQs
The investor and his or her dependents; i.e. spouse and any unmarried children under 21 years of age, can obtain conditional permanent residence at the same time. Back to EB5 FAQs
Yes. However, the person giving the gift would have to provide evidence of the lawful source of the funds. Back to EB5 FAQs
No. The entire amount of the investment does not have to have been made at the time of filing the petition. However, the investor must provide proof of the available funds and a legal commitment of the required amount of capital. Back to EB5 FAQs
There is no limit to the number of investors who may qualify for immigration based upon an investment in a single business. However, each investor must invest the required minimum capital and maintain the required number of jobs created. For example, if five investors each invest $1.8 million in a business, they can each qualify for immigration if 50 jobs are created in their business.
Please note: This also applies to investments made in a Regional Center but counting indirect jobs (jobs created as a result of the capital invested) as well.Back to EB5 FAQs
Targeted employment area is defined as an area with unemployment of at least 150% of the national average rate; or a rural area not within the metropolitan statistical area, or the outer boundary of any city or town having a population of 20,000 or more. Back to EB5 FAQs
Processing times may vary, as every case is different. However, the initial petition is generally reviewed within twenty-eight months or more, and the conditional permanent residence process generally takes an extra four to nine months depending upon whether the investor is in or outside the United States. Back to EB5 FAQs
Yes. An investor is free to travel in and out of the United States, subject to the rules applicable for permanent residents. Specifically, you must maintain a permanent residence in the US and you cannot remain outside the United States for a period of more than a year. Any trip of longer than 6 months will interrupt your continuous presence for naturalization purposes. Back to EB5 FAQs
