What is EB-5?

What Is EB-5?

The EB-5 Immigrant Investor Program, created by the U.S. Congress in 1990, provides a streamlined path to permanent U.S. residency for foreign nationals who invest in job-creating American businesses. Overseen by U.S. Citizenship and Immigration Services (USCIS), EB-5 has grown in popularity among global investors who wish to build a future in the United States. At Behring Regional Center, we guide EB-5 investors every step of the way—matching your financial goals with USCIS-compliant EB-5 projects.

As with any major financial or immigration decision, it’s wise to understand both the EB-5 program requirements and your risk tolerance before moving forward. Having a clear grasp of these fundamentals will help you determine if EB-5 aligns with your personal goals.

Investment Pathways Overview

The EB-5 program offers investors two distinct routes to permanent residency: direct investment and Regional Center investment. Each pathway has its unique characteristics that suit different investors and risk levels.

When investing directly, the investor makes an investment directly into a job-creating company. This means the investor will have to:

• Take an active role in managing the business
• Create and maintain direct, verifiable employment positions
• Handle all aspects of USCIS compliance independently
• Demonstrate direct operational control over the investment
• Rely on jobs that are created by hiring employees directly.

While direct investment offers investors complete control over the business venture, it also carries significant responsibilities and personal financial and immigration risk. Investors must handle everything from planning and operating the business to meeting and documenting all the EB-5 program requirements. This hands-on approach may be suitable for entrepreneurs who have plenty of experience in U.S. business operations, but it may be too involved for many investors and potential U.S. immigrants.

Regional Center investments, on the other hand, allow for a more passive approach. Investors can participate in larger, pre-approved projects without the burden of day-to-day management responsibilities. This pathway typically includes significant benefits:

• Professional project management
• Established job creation frameworks
• Comprehensive compliance monitoring
• Regular reporting on project progress

What Are Regional Center Investments?

EB-5 Regional Centers are USCIS-approved entities that pool investments for large-scale projects such as real estate developments or infrastructure improvements. At Behring Regional Center, we focus on developing and managing projects that meet EB-5 requirements while also ensuring projects are structured to protect investors’ financial interests. EB-5 Regional centers like Behring Regional Center offer:

• Project Management: EB-5 regional centers identify, structure, and manage EB-5 projects that align with USCIS regulations for job creation and investment. They conduct thorough due diligence to ensure project viability and regulatory compliance.
• Fund management: EB-5 regional centers oversee the pooling and allocation of investor funds, providing professional fund management and reducing individual risk. EB-5 regional centers are responsible for capital management, fund disbursement, expense tracking, and financial reporting.
• Regulatory compliance: EB-5 Regional centers manage the complex regulatory requirements of the EB-5 program by overseeing documentation, job creation reporting, and adherence to USCIS guidelines. This reduces the administrative burden on individual investors and improves the chances of approval.
• Target Employment Area (TEA) Benefits: Most EB-5 regional center projects are located in target employment areas (TEAs), which allow investors to qualify at the lower investment threshold of $800,000 (versus $1.05 million for non-TEA EB-5 projects).
• Structured Job Creation Models: EB-5 regional centers can count indirect and induced jobs toward the program’s job creation requirement. Unlike direct investments, which must generate 10 full-time direct jobs, regional center projects can also include jobs created indirectly through the economic impact of the investment. This flexibility makes it significantly easier for investors to satisfy the job creation criteria.

By choosing an EB-5 regional center, like Behring Regional Center, investors can navigate the EB-5 process more efficiently, relying on experienced professionals to handle the complexities of compliance, project management, and fund oversight.

The EB-5 Process

The EB-5 process is a structured path that can lead to a U.S. Green Card for you and your immediate family. Understanding each step helps you prepare for a smooth experience:

1. Select an Investment
Decide between a direct investment or a regional center project. Perform careful due diligence to assess risk, potential returns, and compliance with EB-5 guidelines. Over 90% of EB-5 investors choose to invest through the regional center program because it offers a streamlined, hands-off approach with professional project management, regulatory support, and ease of meeting job creation requirements. You should conduct thorough due diligence to understand the risks and compliance requirements for your EB-5 investment.

2. Prove the Lawful Source of Your Funds
Collect documentation — Investors must work with an immigration attorney to provide comprehensive evidence to show that they obtained their investment capital legally. This typically includes documents and records such as

• Bank statements and transaction records
• Tax returns and business documentation
• Gift documentation if applicable
• Employment and salary verification
• Investment or property sale records

3. File Form I-526E

Once you’ve selected a project and prepared your source of funds document, the next step is to file Form I-526E with USCIS. This petition must demonstrate that you meet the following requirements:

• The applicant has invested or is in the process of investing the required capital.
• The investment project is viable and compliant with EB-5 requirements.
• The applicant obtained their funds lawfully.

Concurrent Filing with Form I-485 (Adjustment of Status): If you’re already in the U.S. in valid status, you may file Form I-485 at the same time as Form I-526E. This allows you to apply for Employment Authorization (EAD) and Advance Parole (AP), providing work and travel benefits while USCIS processes your petition.

4. Obtain Conditional U.S. Permanent Residency
Once your I-526E and I-485 Adjustment of Status petitions are approved, you’ll receive a two-year conditional green card. If you live outside of the U.S., you’ll go through consular processing rather than filing an I-485 petition.

5. Meet the Program Requirements
During your two-year conditional residence period, your EB-5 investment must create or preserve at least 10 full-time jobs for qualifying workers. Regional centers provide job creation reports prepared by professional economists to demonstrate job creation to USCIS on your behalf.

6. File Form I-829 (Petition to Remove Conditions)
In the last 90 days of your two-year conditional residence period, you will file Form I-829. The I-829 document set establishes to USCIS that your investment remained at risk and that the necessary jobs were created (or preserved). Approval of the I-829 petition removes conditions from your conditional green card, granting you and your qualifying family members unconditional permanent resident status.

Benefits of the EB-5 Program

EB-5 offers several key advantages over other U.S. immigration pathways:

• Direct Path to Permanent Residency: The EB-5 program provides a straightforward route to a Green Card for the investor, their spouse, and any unmarried children under 21, without requiring employer or family sponsorship.
• Educational Opportunities: EB-5 investors and their families gain access to U.S. public schools at resident rates, in-state tuition at public universities, and eligibility for scholarships and financial aid reserved for permanent residents.
• Employment Freedom: Unlike other visa categories, the EB-5 green card has no restrictions on employment, allowing investors to start or manage businesses, pursue any job, or even retire without limitations.
• Travel Flexibility: Permanent residents can travel freely in and out of the U.S. without needing additional permissions, unlike certain non-immigrant visa holders.
• Path to Citizenship: After holding a Green Card for five years and meeting naturalization requirements, EB-5 investors and their families can apply for U.S. citizenship, gaining full rights and benefits, including the ability to vote and hold a U.S. passport.

Ready to learn more?

Schedule a free EB-5 consultation to learn how our team of EB-5 experts can help you navigate EB-5 requirements and secure a path to U.S. permanent residency for you and your family.

Disclaimer: The information provided here is for general educational purposes only and does not constitute legal or financial advice. Prospective investors should consult qualified attorneys or financial advisors for guidance tailored to their specific circumstances.

FAQs

Who Is Eligible for the EB-5 Visa?

Any foreign national who can make the required investment and prove that their funds were lawfully obtained may be eligible for the EB-5 visa. There are no age, language, education, or prior business experience requirements, making it accessible to a wide range of individuals. However, applicants must meet USCIS criteria, including demonstrating the lawful source of funds and satisfying job creation requirements. Additionally, individuals with certain criminal records or immigration violations may be deemed ineligible.

How Much Does EB-5 Cost?

The minimum investment amount is $800,000 for projects in TEAs and $1.05 million for non-TEA projects. Beyond the capital investment, investors should also budget for USCIS filing fees, legal and professional service fees, administrative fees charged by regional centers, and any due diligence costs related to the investment. The exact costs may vary depending on the project and your individual circumstances.

Do EB-5 Investors Get Their Money Back?

The EB-5 program requires that investments remain “at risk,” meaning there are no guarantees of a return. However, well-structured projects often include exit strategies designed to return capital to investors once the USCIS requirements and project objectives are met. The timeline and likelihood of receiving your investment back depend on factors such as project performance, market conditions, and the terms outlined in the investment offering documents.

Is an EB-5 Visa Worth It?

For many investors, the EB-5 visa is a worthwhile option due to its clear path to permanent residency and its many benefits, such as employment and travel flexibility, access to U.S. education, and the ability to include family members in the application. However, whether it is worth it depends on your financial resources, risk tolerance, and long-term goals. Consulting with legal and financial professionals can help you evaluate whether the EB-5 program aligns with your objectives.