Definition and FAQ

What is the EB-5 Investment Visa Program?

The Investment Visa Program takes advantage of the immigrant visa category for alien entrepreneurs known as the EB-5 Immigrant Investor Visa, created by the Immigration Act of 1990. In general terms, the EB-5 program requires an alien to “invest or be actively in the process of investing,” either US$1,000,000 or US$500,000, which is “at risk” in a “new or existing business enterprise” that directly or indirectly results in the creation or preservation of ten full time (at least 35 hours per week) jobs for a two year period. A successful applicant can earn permanent residency for himself/herself, a spouse and children under age 21.

What makes the EB-5 Visa program different from the L-1 (manage transfer) or E-2 (Treaty /Investor)?

Participation in the Immigrant Investor programs gives you permanent resident status (green card). Permanent residency requires no renewal or re-application. The E-1 Treaty Investor or E-2 Treaty Trader programs allow for nonimmigrant status only. When the qualifying business/investment ends, so does the non-immigrant status that has been granted to the alien. The Alien will have to leave the United States unless another visa category is granted. Also children over the age of 21 cannot be covered under your visa, and will have to obtain their own visa or leave the United States. Unlike E-1 and E-2, the L-1 alien can apply for classification as a Multinational Executive or Manager. If such a case is approved, which is becoming more difficult due to the high number of fraudulent cases and a subsequent tightening of the review process, the alien may apply for Permanent Resident status. Likewise, the L-1 is a non-immigrant classification. Other U.S. non-immigrant visas, such as E-1, E-2 and H category visas may never result in permanent residency, have time limits, and require additional filings with USCIS or Department of State. Furthermore, U.S. immigration laws may change and prevent future approval when a renewal of visa is required.

Is EB-5 a truly passive investment?

The EB-5 regulations require involvement in management or policy making. The regulations deem a limited partner in a limited partnership, which is properly structured and that conforms to the Uniform Limited Partnership Act as sufficiently engaged in the EB-5 enterprise.

I want to invest in the USA and get a green card, is the EB5 visa suitable for me?

EB5 investor Visa is suitable for people from all walks of life: professionals, business people, persons wanting to facilitate their children’s education and attend US colleges and Universities, persons just seeking a new or better life in the United States, and persons wanting to retire in the United States. The EB-5 visa permits employment in the US for the Investor and their family. Quite simply, the EB-5 visa gives you the opportunity and flexibility to do what you want in the USA. If you don’t want to actively manage your business, you should consider a regional center EB-5 investment.

Will my children be able to remain in school in the United States if I leave the United States?

Yes.

Are any countries excluded from eligibility for the EB-5 Visa program?

Residents of only a few countries are excluded (e.g., North Korea and others). In most cases, however, if the applicant is able to leave the excluded country and has the necessary capital to qualify under the program, legal counsel will be able to help the applicant qualify for visa approval. Consult your attorney to determine if you home country is precluded from this visa program.

What can disqualify us from participating?

There are very few disqualifying or exclusionary events under the law. A criminal record involving crimes of moral turpitude is disqualifying, unless it can be proven that the crime was political in nature or occurred over 20 years prior to the application. A few major medical problems might also exclude an applicant, but for the most part this can be avoided if it can be proven that the applicant will be supported by others and therefore avoid being a recipient of government medical assistance. Applicants should seek advice of their legal counsel to determine what waivers may be available for eligibility.

What is a Designated Regional Center?

A “Regional Center” is an entity, organization or agency that has been approved as such by the USCIS; The pilot program with the coinciding federally designated regional centers was approved by Congress under Section 610(c) of the Appropriations Act of 1993.

Focuses on a specific geographic area within the United States;

Seeks to promote economic growth through increased export sales, improved regional productivity, creation of new jobs, and increased domestic capital investment. Facilitates the pooling of capital of multiple EB-5 investors

Investors can take credit for jobs created directly as well as indirectly from their investment in the Regional Center. Indirect job creation may be demonstrated using any reasonable approved methodology.

Congress gave the USCIS discretion to give priority to EB-5 applications filed in conjunction with a Regional Center.