Employment-Based 5th Preference Category.
Governments around the world seek to promote economic growth through foreign investment. The United States is no exception to welcoming foreign investment to its shores. It provides the benefit of permanent residence to those investors who qualify under the EB-5 Alien Investor Program.
General Information
An EB-5 investor visa is issued to a foreign national who invests money in a commercial enterprise in the U.S. that benefits the national economy and creates or maintains at least 10 full-time jobs. In return, the investor will be given the benefit of permanent residence in the U.S.
Eligibility of the foreign investor depends on the type, purpose, and amount of the investment. The foreign investor may invest in an existing business, a troubled business, a regional center, or may create a new business. The investment amount ranges from $500,000 to $1,800,000, depending on the circumstances and the changing landscape of U.S. immigration law.
Types of Investment Enterprises.
New Business
For a business enterprise to qualify as a “New Business Enterprise” for the purposes of an EB-5 application, the alien investor–
- Must be in the process of investing at least $1,800,000 in the U.S., OR
- Must be in the process of investing at least $900,000 if the enterprise is located in a Targeted Employment Area (TEA)
- Benefit the U.S. economy by providing goods or services to U.S. markets
- Create full-time employment for at least 10 qualified U.S. employees
- Be involved in the day-to-day management or in policy-making for the business
Business Expansion
To be considered an investment in expanding an enterprise, for the purposes of an EB-5 application, the alien investor–
- Must be in the process of investing at least $1,800,000 in the U.S. or at least $900,000 if the enterprise is located in a Targeted Employment Area (TEA)
- Must be involved in the day-to-day management or in policy-making for the business
- The investment must either increase the enterprise’s capital of by 40% or increase the employment base by 40% (with a minimum of 10 additional workers)
Troubled Business
For a business enterprise to qualify as a “Troubled Business” for the purposes of an EB-5 application, the alien investor—
- Must be in the process of investing at least $1,800,000 in the U.S. or at least $900,000 if the enterprise is located in a Targeted Employment Area (TEA)
- Must be involved in the day-to-day management or policy making for the business
- The enterprise must have existed for two (2) years
- Twelve (12) to twenty-four (24) months before the submission of the EB-5 application, the enterprise must have incurred a net loss of at least 20% of the business’ net worth before the loss
- The enterprise must maintain the pre-investment level of employment for at least two (2) years from when the investment is made
Regional Center
The definition of a “Regional Center” for the purposes of an EB-5 application, is any economic unit, public or private, engaged in the promotion of economic growth, improved regional productivity, job creation and increased domestic capital investment. There are more than a hundred designated regional centers in the U.S. and this number is expected to grow in the coming years.
Targeted Employment Area
For the purposes of an EB-5 application, a “Targeted Employment Area” is defined as ‘an area, that at the time of investment, is a rural area or is designated as an area that has experienced high unemployment rate of at least 150% of the national average rate.’ A rural area is an area not within a metropolitan statistical area and not within the outer boundary of any city or town having a population of 20,000 or more.
Feel free to contact us if you are interested in pursuing an EB-5 Investor Visa application.
The information above is for general purposes and should not be treated as legal advice. Please refer to our Terms of Use.