Updated by Joe Barnett in May 2022
Foreign investors must meet specific regulatory and United States Citizenship and Immigration (USCIS) requirements to obtain their permanent residency through the EB-5 visa program. In general, the investor must meet capital investment amount requirements, job creation requirements, and ensure that the business receiving the investment qualifies for the EB-5 program, as specified under 8 C.F.R. § 204.6. EB-5 visa applicants, their spouse, and their children under 21 will obtain their permanent residency green card once all requirements have been successfully met and approved by the USCIS.
Required EB-5 Investment Amount
Since the EB-5 Reform and Integrity Act of 2022, EB-5 visa applicants are typically required to make either a $800,000 or $1,050,000 capital investment amount into a U.S. commercial enterprise. The EB-5 investment can take the form of cash, inventory, equipment, secured indebtedness, tangible property, or cash equivalents and is valuated based on U.S. dollar fair-market value.
The minimum amount of capital required for the EB-5 visa program may be decreased from $1,050,000 to $800,000 if the investment is made in a commercial entity that is located in a rural area, high unemployment area, or an infrastructure project.
EB-5 Job Creation Requirements
The USCIS requires that EB-5 investments result in the creation of 10 full-time jobs for U.S. workers. These jobs must be created within the two year period after the investor has received their conditional permanent residency. In some cases, the investor must be able to prove that their investment led to the creation of direct jobs for employees who work directly within the commercial entity that received the investment. However, the EB-5 investor may only have to show that 10 full-time indirect or induced jobs were created if the investment was made in a regional center. Indirect jobs are those created in businesses that supply goods or services to the EB-5 project. Induced jobs are jobs created within the greater community as a result of income being spent by EB-5 project employees.
EB-5 Business Entities
There are several types of business entities in which an EB-5 visa applicant can invest. In general, the applicants can invest directly in a new commercial enterprise or through a regional center. New commercial enterprises are lawful for-profit entities that can take one of many different business structures. Such business structures include corporations, limited or general partnerships, sole proprietorships, business trusts, or other privately or publicly owned business structures. All new commercial enterprises must have been established after November 29, 1990.
However, older commercial enterprises may qualify if the investment leads to a 40-percent increase in the number of employees or net worth, or if an older business is restructured to such a degree that a new commercial enterprise results. In addition to individual business enterprises, EB-5 visa applicants can also through Regional Center projects, which may be more advantageous because the investor will not have to independently set up the EB-5 projects.
EB-5 Visa Requirements Summary
- $1,050,000 capital investment, $800,000 in a rural area, high unemployment area, or an infrastructure project
- The investment must be made in a for-profit U.S. commercial entity
- The investment must create 10 full-time U.S. jobs for two years
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