EB-5 Investor Program

What is the EB-5 Immigrant Investor Program?

The EB-5 Immigrant Investor Program was created by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors. It provides a pathway to permanent residency (green card) for eligible investors, their spouses, and unmarried children under 21.

Under this program, investors must make a qualifying investment in a new commercial enterprise in the United States and create or preserve at least 10 full-time jobs for qualifying U.S. workers.

EB-5 Investment Requirements

The EB-5 program has specific investment thresholds that must be met:

Standard Investment Amount

As of March 2022, the standard minimum investment amount is $1,050,000 in a new commercial enterprise.

Targeted Employment Area (TEA) Investment

A reduced investment amount of $800,000 is required for investments made in:

• Rural Areas: Areas outside metropolitan statistical areas or the outer boundary of any city or town with a population of 20,000 or more
• High Unemployment Areas: Areas with an unemployment rate of at least 150% of the national average
• Infrastructure Projects: Certain infrastructure projects that are administered by governmental entities

Job Creation Requirements

One of the primary goals of the EB-5 program is job creation. Each EB-5 investment must create or preserve at least 10 full-time jobs for qualifying U.S. workers within two years of the investor's admission to the United States as a Conditional Permanent Resident.

There are two types of job creation that can be counted:

• Direct Jobs: Full-time positions within the new commercial enterprise itself
• Indirect Jobs: Jobs created collaterally as a result of capital invested in a commercial enterprise affiliated with a regional center

EB-5 Investment Options

1. Direct Investment

Direct investment involves establishing, purchasing, or expanding a business in which the investor has a direct managerial role. In this option:

• The investor typically plays an active role in the business operation
• Only direct jobs (employees of the EB-5 enterprise) can be counted toward the job creation requirement
• The investor must provide evidence of the direct creation of 10 full-time jobs

2. Regional Center Investment

Regional centers are economic entities approved by USCIS that sponsor EB-5 investment projects. Investing through a regional center offers several advantages:

• Allows for the counting of both direct and indirect jobs to meet the job creation requirement
• Often provides a more passive investment opportunity with less day-to-day management involvement
• Usually has established job creation methodologies and economic analyses
• May offer more structured legal documentation and investment security measures

The EB-5 Application Process

The EB-5 visa process typically involves the following steps:

Step 1: Select an Investment Project

Choose between a direct investment or a regional center project. This decision should involve careful due diligence including:

• Financial viability of the project
• Track record of the project developers or regional center
• Job creation methodology and projections
• Exit strategy and timeline for return of investment
• Risk assessment

Step 2: Make the Investment

Transfer the required capital ($800,000 or $1,050,000) to the investment project, ensuring that:

• The funds are placed "at risk" as required by USCIS
• There is proper documentation of the lawful source of funds
• The path of funds is clearly traceable from source to investment

Step 3: File Form I-526E Petition

Submit the Immigrant Petition by Alien Entrepreneur (Form I-526E) to USCIS with comprehensive documentation including:

• Evidence of the qualifying investment
• Business plan showing job creation projections
• Documentation proving the lawful source of investment funds
• Evidence that the business qualifies as a new commercial enterprise
• If applicable, evidence that the investment is in a Targeted Employment Area

Step 4: Conditional Permanent Residency

After I-526E approval, proceed with:

• If in the U.S.: Filing Form I-485 for adjustment of status
• If outside the U.S.: Consular processing for an immigrant visa

Upon approval, you receive conditional permanent resident status valid for 2 years.

Step 5: Fulfill EB-5 Requirements

During the 2-year conditional period, ensure that:

• The investment remains active and at risk
• The job creation requirement (10 full-time jobs) is met
• You maintain compliance with all program requirements

Step 6: File Form I-829 Petition

Within 90 days before the expiration of your conditional green card, file Form I-829, Petition by Entrepreneur to Remove Conditions. This petition must demonstrate that you:

• Made and sustained the required investment
• Created or preserved the required number of jobs
• Otherwise complied with the requirements of the EB-5 program

Step 7: Permanent Green Card

Upon approval of the I-829 petition, the conditions are removed, and you receive a permanent green card.

Recent EB-5 Program Changes and Reform

The EB-5 program has undergone significant changes in recent years, including:

• EB-5 Reform and Integrity Act of 2022: Introduced new integrity measures, updated investment amounts, and reauthorized the Regional Center Program through September 30, 2027
• New Integrity Measures: Enhanced oversight of regional centers, including fund administration, investment transparency, and investor protections
• Concurrent Filing: In certain circumstances, investors can file adjustment of status applications concurrently with their I-526E petitions
• Visa Set-Asides: Reserved visa categories for rural areas, high unemployment areas, and infrastructure projects, potentially reducing wait times for investors in these categories

Advantages and Considerations of the EB-5 Program

Advantages

• Path to permanent residency for the investor, spouse, and unmarried children under 21
• No requirement for sponsor, job offer, or specific skills
• Freedom to live and work anywhere in the United States
• Access to U.S. education system, including public schools and in-state tuition at colleges and universities
• Potential for return on investment, depending on the project
• Reserved visa allocations may reduce waiting times for certain investment categories

Considerations

• Significant upfront investment required
• Processing times can be lengthy (often 2+ years for I-526E approval)
• Investment risk – capital must be genuinely "at risk" with no guarantees
• Visa backlogs for certain countries (particularly China)
• Complexity of documenting lawful source of funds
• Ongoing changes to program regulations and requirements

Our EB-5 Investor Services

JZ Law Group provides comprehensive legal services for the EB-5 investor program, including:

• Education on EB-5 process and requirements
• Investment project evaluation and due diligence assistance
• Source of funds analysis and documentation
• Preparation and filing of I-526E petitions
• Assistance with adjustment of status or consular processing
• Preparation and filing of I-829 petitions to remove conditions
• Coordination with financial advisors, business plan writers, and economists
• Advising on complex source of funds situations
• Guidance on maintaining compliance throughout the conditional residence period

Why Choose JZ Law Group for Your EB-5 Case

Our firm has extensive experience guiding investors through the complex EB-5 process. We understand the nuances of USCIS requirements and provide strategic guidance to help you navigate potential pitfalls.

We work closely with investors to develop comprehensive documentation packages that clearly establish eligibility for the EB-5 program. Our attention to detail in source of funds documentation and investment structuring helps minimize the risk of RFEs (Requests for Evidence) and denials.

Our attorneys stay current with the rapidly evolving EB-5 landscape, including program changes, policy updates, and processing trends, ensuring that our clients receive the most accurate and up-to-date advice.