EB-5 visa

The United States EB-5 visa, employment-based fifth preference category[1] or EB-5 Immigrant Investor Visa Program was created in 1990 by the Immigration Act of 1990. It provides a method for eligible immigrant investors to become lawful permanent residents—informally known as "green card" holders—by investing substantial capital to finance a U.S. business (known as a "new commercial enterprise") as long as it creates at least 10 new, full-time jobs for Americans and work-authorized immigrants.[2] The EB-5 program is intended to encourage both "foreign investments and economic growth."[3] The EB-5 Immigrant Investor Visa Program is one of five employment-based (EB) preference programs in the United States.[4]: 4 

Based on the EB‐5 Reform and Integrity Act, which was signed into law on March 15, 2022, the minimum investment requirement to qualify under the EB-5 program is $1,050,000.[5] The investment requirement is reduced to $800,000, however, if the investment is made in a qualifying infrastructure project or targeted employment area (TEA). Most immigrant investors who use the EB-5 program invest in a targeted employment area (TEA)[6]: 8 —a rural area or area with high unemployment rate in order to invest less capital.[7] Investors who make a TEA investment or an infrastructure investment for the $800,000 investment minimum qualify for EB-5 "set aside" visas, which are broken down intro three categories: infrastructure projects; projects in high-employment areas; and projects in rural areas.

Applicants have the choice of investing directly or through a "larger investor pool via regional centers (RCs)",[4]: 2  which are federally approved investment issuers that "connect foreign investors with developers in need of funding, and take a commission."[8][9][10][4] Regional centers are usually private, for-profit businesses that are approved by the U. S. Citizenship and Immigration Services (USCIS) which is part of the Department of Homeland Security.[10][11]

As of April 4, 2023, there are 640 USCIS-approved regional centers,[12] and as of March 2023, the "vast majority" of EB-5 visas were "granted through regional center[s]."[6]: 4  By 2015, the EB-5 program had become an "important source of capital for developers"[4] and for the regional centers.[10] If an EB-5 investment is made in a regional center, the jobs may be created indirectly through economic activity, as opposed to a direct investment. [13]

As of April 23, 2020, 78,278 investors have applied for the EB-5 program.[14] Most investors—about 80 percent—come from four countries: China, South Korea, Taiwan and the United Kingdom. Large numbers of applicants have also come from Vietnam, India, Brazil, Mexico, and Nigeria.[14] In 2014, 85% of the 10,692 EB-5 visas issued were for Chinese nationals, according to a study by Savills Studley, a "real estate services firm."[15][16] On December 20, 2019, President Trump signed a law extending the Regional Center Program through September 30, 2020.[17] On March 15, 2022, President Biden signed a law extending the regional center program through September 30, 2027.[18]

  1. ^ Lin, Annie Anjung (February 16, 2015). Splitting the EB-5 Program: A Proposal for Employment-Based Immigration Reform to Better Target Immigrant Entrepreneurs and Investors (PDF). Chapman Law Review (Report). Vol. 18. pp. 527–552. Archived (PDF) from the original on January 26, 2018. Retrieved May 9, 2017.
  2. ^ Ron Nixon (March 15, 2016). "Program That Lets Foreigners Write a Check, and Get a Visa, Draws Scrutiny". The New York Times. Archived from the original on April 5, 2021. Retrieved May 9, 2017.
  3. ^ "Targeted Employment Areas". State of Wisconsin. May 5, 2017. Archived from the original on March 16, 2017. Retrieved May 9, 2017.
  4. ^ a b c d Cite error: The named reference savills-studley_EB5_2015 was invoked but never defined (see the help page).
  5. ^ Butler, Jim (April 18, 2022). "What the revitalization of EB-5 financing means for real estate developers and entrepreneurs". Reuters. Archived from the original on December 22, 2022. Retrieved December 22, 2022.
  6. ^ a b Cite error: The named reference Brookings_Improving_EB5 was invoked but never defined (see the help page).
  7. ^ "EB-5 Immigrant Investor Program". USCIS. U.S. Citizen and Immigration Services. Archived from the original on July 20, 2020. Retrieved July 18, 2022.
  8. ^ Cite error: The named reference WCP_2014_TEA_EB5 was invoked but never defined (see the help page).
  9. ^ Cite error: The named reference Wash_HUAS was invoked but never defined (see the help page).
  10. ^ a b c Cite error: The named reference Fortune_2014_Nicholas Mastroianni was invoked but never defined (see the help page).
  11. ^ "2017 Targeted Employment Area request instructions" (PDF). Washington State and United States Citizenship and Immigration Services (USCIS). April 2017. Archived (PDF) from the original on January 26, 2018. Retrieved May 8, 2017. USCIS contact Robert Haglund
  12. ^ Cite error: The named reference USCIS_Regional_Centers_May_2017 was invoked but never defined (see the help page).
  13. ^ "InvestAmerica | EB-5 Green Card Program". InvestAmerica LLC. Retrieved November 17, 2023.
  14. ^ a b Insider, Investment Migration. "The United States EB-5 Program". Investment Migration Insider. Archived from the original on April 29, 2020. Retrieved April 24, 2020.
  15. ^ Cite error: The named reference NBC_Grassley_EB5_2017 was invoked but never defined (see the help page).
  16. ^ "Jared Kushner's Trump Card". Bloomberg. 2016. Archived from the original on April 7, 2020. Retrieved May 8, 2017.
  17. ^ "About the EB-5 Classification". USCIS. January 2020. Archived from the original on February 13, 2020. Retrieved February 29, 2020.
  18. ^ Jeffries, Hakeem S. (March 15, 2022). "H.R.2471 - 117th Congress (2021-2022): Consolidated Appropriations Act, 2022". www.congress.gov. Archived from the original on May 29, 2015. Retrieved May 22, 2022.