Phone Number

+1.843.853.8222 x104

Email Address

info@investamericap.com

FAQs

Your Questions, Answered

Navigating the EB-5 Immigrant Investor Program can feel complex. Our FAQ page is designed to address the most common questions about the program.
In addition, we’ve created a comprehensive Glossary of Terms to clarify key industry concepts and terminology. To further assist you, we’ve included an overview of the regulatory agencies that may have a hand in governing the EB-5 program.
Start exploring now, and feel free to contact us with any additional questions or to learn more about how we can support your EB-5 investment journey.

1- EB-5 Program Overview

The EB-5 Immigrant Investor Program is a United States visa program that offers foreign investors and their families the opportunity to obtain permanent residency (green cards) by making a qualified investment in a new commercial enterprise that creates or preserves jobs for U.S. workers.

The EB-5 program requires investors to make a minimum qualifying investment of $800,000 in a new commercial enterprise located in a targeted employment area (TEA) and an investment of $1,050,000 for projects not in a TEA. Where a TEA is an area with high unemployment or rural areas. The investment must create or preserve at least 10 full-time jobs for U.S. workers.

Benefits of participating in the EB-5 program include the opportunity to obtain permanent residency in the United States for the investor, their spouse, and unmarried children under 21 years old. It also provides the freedom to live, work, study, and retire anywhere in the United States, as well as access to educational and healthcare benefits.

The time to obtain permanent residency through the EB-5 program can vary, but it generally takes several years from the initial investment to the issuance of conditional permanent residency. After that, investors typically wait another two years to apply for the removal of conditions on their green cards.

Eligibility requirements for the EB-5 program include making a qualifying investment of at least $800,000 in a new commercial enterprise located in a targeted employment area (TEA) and an investment of $1,050,000 for projects not in a TEA, creating or preserving at least 10 full-time jobs for U.S. workers, and demonstrating the lawful source of investment funds.

2- Investment and Financial Considerations

Investors are required to invest a minimum of $800,000 in a new commercial enterprise located in a targeted employment area (TEA) or an investment of $1,050,000 for projects not in a TEA to qualify for the EB-5 program.add info on admin fees as well as filing fees.
The sources of funds for EB-5 investment must be lawful and can include personal savings, gifts, inheritance, business earnings, loans, or any other legitimate source of capital.

Yes, investors can use financing or loans to make their EB-5 investment as long as they can demonstrate that the financing is secured by their own assets and meets the EB-5 program’s requirements.

Like any investment, there are risks associated with EB-5 investments, including the potential loss of capital, project failure, changes in immigration laws, and the inability to meet program requirements. It’s essential for investors to conduct thorough due diligence before making an investment.

The expected return on investment for EB-5 projects can vary depending on the specific project, industry, economic conditions, and other factors. Investors should carefully review project documents and financial projections to assess potential returns.

The expected timeframe for receiving your investment back can vary significantly depending on factors such as the duration of the EB-5 project, the terms of the investment agreement, and the success of the project in meeting its goals. Typically, EB-5 investments are structured with a specific timeline for project completion and job creation. Investors should carefully review project documents and consult with investment professionals to understand the projected timeline for receiving returns on their investment. Additionally, it’s essential to consider potential delays or unforeseen circumstances that could impact the return timeframe.

3- Application Process and Legal Procedures

The EB-5 application process typically involves selecting an EB-5 project, making the investment, filing Form I-526 (Immigrant Petition by Alien Investor) with USCIS, obtaining conditional permanent residency, filing Form I-829 (Petition by Entrepreneur to Remove Conditions) to remove conditions on residency, and obtaining permanent residency.
While hiring an immigration attorney is not mandatory, it is highly recommended to navigate the complex legal requirements of the EB-5 program, ensure proper documentation, and increase the chances of application success.

The EB-5 application process can vary in duration but typically takes several years from the initial investment to the issuance of conditional permanent residency. Processing times for Form I-526 and Form I-829 petitions can also vary.

Documentation required for the EB-5 application includes investment-related documents, source of funds documentation, business plans, project documents, personal identification documents, and any additional evidence to support the eligibility of the investment. Add context for US based investors here on other visas i.e. accreditation requirements

After submitting the EB-5 application, USCIS will review the petition, conduct background checks, request additional evidence if necessary, and make a decision on the application. If approved, investors and their eligible family members can obtain conditional permanent residency. Investors will need to satisfy additional program requirement in order to obtain permanent residency.

4- Green Card and Permanent Residency

The EB-5 program leads to obtaining a green card and permanent residency by meeting the investment and job creation requirements, filing Form I-526 to obtain conditional permanent residency, and subsequently filing Form I-829 to remove conditions on residency.

The initial green card obtained through the EB-5 program is conditional and valid for two years. It is subject to certain conditions, including maintaining the investment, creating or preserving jobs, and meeting all program requirements.

Conditional green card holders can apply to remove conditions by filing Form I-829 with USCIS within the 90-day period before the second anniversary of obtaining conditional permanent residency. This process requires demonstrating compliance with program requirements and investment terms.

Yes, the spouse and unmarried children under 21 years old of EB-5 investors can also obtain conditional green cards as derivative beneficiaries of the investor’s EB-5 petition.

To maintain permanent residency obtained through the EB-5 program, investors must maintain continuous physical presence in the United States, comply with all U.S. laws and regulations, file taxes, and avoid any actions that could jeopardize their immigration status.

5- Investment Risks and Security

EB-5 investments carry risks similar to other investment opportunities, including the potential for financial loss, project failure, changes in immigration laws or policies, and the inability to meet program requirements. It’s essential for investors to conduct thorough due diligence and seek professional guidance.

Risks associated with investing in EB-5 projects may include economic downturns, project delays, regulatory changes, job creation challenges, potential fraud or mismanagement, and other factors that could impact the success of the investment.

While there are no guarantees in investment, EB-5 investors may benefit from project-specific safeguards such as escrow arrangements, project transparency, third-party oversight, and legal protections outlined in offering documents or partnership agreements.

If an EB-5 project fails to meet its objectives, investors face the risk of losing their investment capital and may consequently jeopardize their eligibility for permanent residency. Depending on the outcome, investors could either lose their investment capital and their green card, recoup their investment but lose their green card, or successfully obtain their green card despite financial losses. Conducting thorough due diligence and carefully assessing potential risks before making an investment is crucial in mitigating these potential outcomes.

Yes, the EB-5 program is subject to government regulations and oversight by U.S. Citizenship and Immigration Services (USCIS), which administers the program, and the Securities and Exchange Commission (SEC), which regulates securities offerings associated with EB-5 projects. Additionally, regional centers and projects must comply with federal and state laws governing securities offerings and business operations. It’s important to note that Regulation S and Regulation D securities exemptions often apply to EB-5 investments, requiring investors to meet certain criteria, such as being sophisticated investors, which adds another layer of regulatory consideration.

6- Project Selection and Due Diligence

Potential investors can find EB-5 investment projects through regional centers, immigration attorneys, investment advisors, online platforms, industry conferences, and networking events. We recommend working with a FINRA registered representatives to ensure suitability and best interest regulations are followed.

When evaluating EB-5 projects, investors should consider factors such as project location, industry sector, job creation projections, developer track record, project timeline, market projections, project comparables, regulatory compliance, and potential risks and returns.

Due diligence on potential EB-5 projects involves reviewing project documents, financial statements, business plans, economic impact studies, developer track record, legal compliance, immigration history, and consulting with immigration attorneys and financial advisors. Review market analysis, comparable analysis.

Projects that qualify for the EB-5 program must be a new commercial enterprises that create or preserve at least 10 full-time jobs for U.S. workers and meet all program requirements. These projects can include real estate development, infrastructure projects, manufacturing facilities, hospitality ventures, and more. Add note on TEA qualifications.

While EB-5 investment opportunities exist across various industries, certain sectors such as real estate development, hospitality, healthcare, infrastructure, and renewable energy have historically attracted significant EB-5 investment due to job creation potential and economic impact.

Investors may opt to engage with a registered financial representative or broker dealer due to the stringent regulations governing suitability and best interest obligations. These professionals are bound by legal requirements to document and adhere to the client’s best interests, ensuring transparency and protection throughout the investment process. Unlike some regional centers, which may not have the same level of oversight, working with a registered financial representative or broker dealer offers investors added assurance and accountability in their investment decisions.

List of Regulators

Agency that implements and enforces federal consumer financial law and ensures that the market for consumer financial products is fair, transparent, and competitive.

Insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection.

Has the authority to monitor all aspects of the insurance sector.

The US Central Banking System – setting interest rates, managing the money supply, and regulating financial markets.

Congress to protect America’s investors by making sure the broker dealer industry operates fairly and honestly.

Insures deposits at federally insured credit unions, protects the members who own the credit unions, and charters and regulates Office of the Comptroller of the federal unions

Charters, regulates and supervises all national banks and federal savings associations as well as federal branches and agencies of Securities Exchange Commision foreign banks.

Protects investors, maintains fair, orderly and efficient markets, and facilitates capital formation.

Corporation that protects customers if their brokerage firm fails.

Government agency that administers lawful immigration to the United States

Industry Terms Glossary

Administrative Appeals Office
Adjudicates appeals under authority delegated to the USCIS.

Allows you to travel back to the US without applying for a visa.

Code of Federal Regulations
Is an arrangement of the general and permanent rules published in the Federal Register by the executive departments and agencies of the Federal Government.

GreenCard application for applicants applying from outside the US.

A visa for an investor, from a country under a treaty provision with the US, who can invest a substantial amount of capital to a US business. Visa’s vary from 2 – 5 years.

Employment Authorisation Document A card that only allows you to work in the US during the period listed on the card.

First Preference Visa

Employment based immigrant visa designed for multinational executives and managers.

Second Preference Visa Employment based immigration visa that allows foreign professionals with advanced degrees or exceptional abilities in certain fields to work and live permanently in the US.

Third Preference Visa A third priority visa available for skilled workers, professionals with bachelor degrees (or similar), and eventually unskilled workers.

A type of visa that allows investors to invest in particular projects that create jobs for US citizens in return for residency in the US.

Trust Account Manager A neutral third-party who holds onto funds and assets related to the transaction until both parties have satisfied their contractual obligations.

A visa that allows a student to temporarily live in the US while studying.

Is a SEC filing form used to file a notice of an exempt offering of securities under Regulation D of the US SEC.

An exemption allowing persons or entities to continue with activities or operations that were approved before the implementation of the new rules / laws.

A permit allowing a foreign national to live and work permanently in the US.

A non-immigrant work visa that allows US employers to hire foreign nationals with specialised skills to work in the United States for a specific period of time.

A temporary or seasonal work visa that allows agricultural employers to hire foreign nationals to work in the United States for a specific period of time.

Temporary visa for the spouse and unmarried children under 21, of the individuals on a H-1B or H-2A Visa.

Application to register for permanent residence or adjust status.

First Application form to determine if the Standalone Investor is eligible for the EB-5 Visa.

First Application form to determine if the Regional Centre Investor is eligible for the EB-5 Visa.

An application to remove the conditions from the investors permanent resident status.

Form for the investor to demonstrate continued eligibility for Regional Center designation. (Replaced by the I-956G)

A status document, which defines the travelers visa status once inside the US, and the length of stay permitted.

Application for Regional Center Designation.

Application for approval for an investment in a commercial enterprise.

Form for required information, certificates, and evidence to support the investors continued eligibility for Regional Center Designation.

Application to attest the investors eligibility to be involved with the EB-5 entity.

Registration for Direct and Third-Party Promoters.

Invest In USA A membership based association for the EB-5 program.

Immigration and Nationality Act The body of law governing US immigration policy.

A document that describes the terms and the allocation of collateral between common lenders in the event of a default by the borrower.

Is a request for USCIS to consider approving a pending GreenCard under an employment-based category different to the original GreenCard petition.

Internal Revenue Service

 

Administers the federal tax laws that Congress enacts. Tax return processing, taxpayer service, and enforcement.

A non-immigrant visa for individuals to participate in exchange programs in the US. (Au pair, intern, trainee, research scholar, professor.)

Job Creating Entity An entity that receives EB-5 capital from a separate Regional Center affiliated NCE and that is responsible for creating indirect jobs for the related EB-5 investors.

A comprehensive and detailed business plan that demonstates the feasibility, credibility, and viability of a proposed EB-5 project.

Refers to a precedent setting decision made by the USCIS that capital invested must be irrevocably committed to a new commercial enterprise, and their investment be at risk for the purpose of generating a guaranteed return on all or a portion of their capital.

New Commercial Enterprise

A for-profit enterprise engaged in ongoing lawful commercial activity.

Notice of Intent to Deny A letter stating that the USCIS does not believe the applicant is entitled to the benefit they are applying for and intend to deny. Further documentation and applications are required to prove eligibility.

Geographically affluent areas.

National Visa Center Is part of the US Department of State’s Bureau of Consular Affairs. Job is to prepare immigrant visa applications for consular officers to review and adjudicate.

The Office of Management and Budget Oversees the performance of federal agencies and administers the federal budget.

Private Placement Memorandum A document that outlines the terms of securities to be offered in a capital raise.

The investment amount is either $800,000 or $1,050,000, depending on whether the project is located in a targeted employment area or not.

Regional Center

An EB-5 Regional Center is an economic unit, public or private, in the US, involved with promoting economic growth. These designated regional centers paticipate in the Immigrant Investor Program.

A regulation that governs private placement of securities. A private placement is a capital raising event that involves the sale of securities to a small number of US investors.

A regulation that allows a syndicator to raise an unlimited amount of money as long as they do not solicit for those funds.

A regulation that permits issuers to broadly solicit and generally advertise an offering, provided that all purchasers in the offering are accredited investors.

A registration exemption that allows securities to be sold to non-US investors exclusively outside of the US.

Request for Evidence

Request for more documentation.

Reform and Integrity Act 2022 A reform of the EB-5 Immigrant Investor Program, with revised amounts, streamlined adjudication processes, and enhanced security aiming to improve the programs effectiveness.

An IRS form used by partnerships, S-Corporation, estates and trusts to declare income, deductions, and credits that partners, shareholders and beneficiaries have received in the tax year.

An Act that regulates securities transactions on the secondary market. Creates reporting and financial disclosure requirements for companies listed on the stock exchange, as well as prohibiting fraudulent activity.

Only granted if investing in TEA’s, the investor can immigrate to America with little to no delays.

Targeted Employment Area A geographic area of high unemployment outside of the metropolitan area.

United States Citizenship and Immigration Services Government agency that administers lawful immigration to the United States.

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