The EB-5 visa program offers foreign investors a pathway to U.S. lawful permanent resident status through investment in projects that create jobs. There are two main types of EB-5 projects: direct investments and regional center investments. Each has specific requirements in terms of investment amount, job creation, and sustaining the investment. The process of applying for EB-5 status through an investment project involves first getting the project approved by USCIS, then filing an I-526 petition, and finally filing an I-829 petition to remove conditions. Critical considerations for EB-5 investors include conducting proper due diligence, working with experienced attorneys, and monitoring the project until permanent residency is obtained.
Investment requirements differ based on project location and type
The baseline EB-5 investment requirement is $1 million, but this is reduced to $500,000 for projects located in high unemployment or rural areas known as Targeted Employment Areas (TEAs). Regional center EB-5 projects allow job creation to be measured using indirect as well as direct jobs, making them popular. But direct EB-5 investments offer more control for investors. In recent policy manual changes, USCIS now requires that investors sustain their capital investment not just until job creation is met initially, but throughout their time as conditional permanent residents while awaiting I-829 adjudication. This may necessitate redeployment of funds into a new investment.
EB-5 regional center projects involve many parties with different roles
A key advantage of the regional center model is that it allows the investor to work with experienced teams rather than directly manage their own new commercial enterprise. The investor provides the capital, while the other main parties like the regional center, new commercial enterprise, and project developer handle running the actual project and documenting EB-5 program compliance. Clear agreement on each party’s responsibilities is important. Since EB-5 investors rely heavily on the regional center and project teams, conducting thorough due diligence into their capabilities, track records, credibility and more is essential.
USCIS project pre-approval provides more certainty but is not required
While investors can file I-526 petitions for projects that are not pre-approved by USCIS, having a project pre-approved as an exemplar or designated regional center provides more assurance it will meet program requirements. Regional centers must file an I-924 application for designation approval, which outlines details like the geographic region, industries targeted, predicted job creation methodology, and more. Exemplar project pre-approval via an I-956 petition adds another layer of confidence but also takes more time and expense to obtain.
Permanent EB-5 visa status is obtained in two steps after investment
Once the investor has committed funds to the approved EB-5 project, they file an I-526 immigrant petition to USCIS requesting conditional permanent resident status. If approved, they and any qualified dependents can then either consular process their green cards abroad or adjust status within the U.S., depending on visa availability. Two years later, they must file an I-829 petition to demonstrate that the investment capital was sustained and the required jobs were created so that the conditions can be removed from their green cards.
Investor due diligence and attorney support are vital for EB-5 process
Because EB-5 investors depend on the regional center and project developer to actually create jobs and run the enterprise, extensive due diligence into these parties is essential to reduce program compliance risks. Hiring an experienced EB-5 immigration attorney is also key for navigating the complex I-526 and I-829 petition process, evaluating any changes to the project, and maintaining lawful status. Unlike passive investments, investors should take an active monitoring approach even after filing until permanent residency is granted.
EB-5 investment projects allow foreign nationals to obtain green cards through investments, but have particular requirements related to job creation and at-risk capital. Regional center models are popular but investors should ensure proper vetting. Navigating the application and sustainment process involves both diligence of business partners as well as reliance on skilled legal counsel.