Reviving Dreams with EB-5 Investor Visa
Introduction and History of EB5 Visa:
The EB5 Visa program is one of the oldest immigration programs in the US, introduced in 1990 to stimulate the US economy through job creation and capital investment by foreign investors.
The program offers US permanent residency, popularly known as the Green Card, to Foreign Investors who invest a minimum of $ 800,000 in qualifying commercial projects in the US, which creates jobs for Americans.
The program has a long history but underwent much turbulence after November 2019, which included a substantial increase in the investment amount followed by litigations and suspension of the program. Finally, in March 2022, the US Congress passed the EB5 Reforms and Integrity Act, giving the program a new lease of life.
Explore the Renewed EB-5 Investment Visa
Welcome to the latest insights into the EB-5 Visa program, rejuvenated and enhanced for investors aiming for U.S. residency. Led by Paresh Karia, CEO of Acquest Advisors, we delve into the significant updates of the EB-5 Reform and Integrity Act and how it shapes the future for investors.
What’s New in the EB-5 Visa Program?
EB5 is back in a New Avatar!! A new bill has been passed recently by the US government known as the EB5 Reform and Integrity Act (RIA) 2022. There have been some major key changes in the program, making it more attractive to foreign investors.
Extension of the Program till Sept 2027
The EB5 regional centre program has been extended for 5 years, i.e. till 30th September 2027. Now, with this extension, the program has stability and certainty. Earlier, It was a pilot program that had to be renewed by the US Congress every 6 months or so.
Concurrent Filing for Adjustment of Status:
The New EB5 Visa program has also introduced concurrent filing for Adjustment of Status (AOS). Earlier, when you applied for an EB5 visa, you had to wait for your application to be approved, which took 2 to 3 years, and only after that could you apply for a change of status. With the new changes, you can immediately file for AOS after applying for an EB5 visa. While this is in process, you can get an Employment Authorization Document (EAD) and Advance Parole (Travel Document), usually within four to six months.
Now, this is a big advantage for those already in the US on non-immigrant visas, such as students on F1 visas or employees on H1B visas. You can freely work in the US without sponsorship or an H1B Visa. The EAD also allows you to switch jobs freely as per your career aspirations and relieves you of being dependent on your employer for visas. You are also free to pursue your entrepreneurial dreams by starting your own business or profession.
The Advance Parle or Travel Permit gives you the freedom to travel in and out of the US without the hassles of stamping visas.
Updated Investment Amounts:
- Investment threshold revised to $800,000 for projects in Targeted Employment Areas (TEAs).
- Investment threshold revised to $1,050,000 for non-TEA projects.
- The revision aligns with the program’s objectives and market realities.
New Investment Amount
The investment amount has now been fixed at $800,000 for projects in Targeted Employment Areas (TEAs) and $1,050,000 for those in non-TEA areas till 30th September 2027. Thereafter the amount may increase based on the inflation.
Restrictions on Direct Projects
Pooling of investors’ funds into a direct project will no longer be allowed. There will be only one investor for direct projects. The pooled projects with multiple investors will be under a regional centre and comply with new stricter compliance norms. This means greater compliance and higher costs for direct projects.
Benefits of EB5 Visa and Green Card
The EB5 Visa is your pathway to US Permanent residency, which opens a world of opportunities while pursuing education and career and much beyond for generations to come. Some of the key benefits of EB5 Visa are as under:
- Savings in Tuition fees as Green card holders are eligible for in-state tuition fees.
- Better Internship and campus placement opportunities.
- Wider employment and career growth opportunities since you don’t need sponsorship/H1B Visa.
- Enhanced Career mobility as you can switch jobs freely without dependency on Employers
- Freedom to start your own business or profession in the US.
- Travel flexibility allows you to travel in and out of the US without the hassles of visa stamping.
- Access to excellent education, healthcare, infrastructure and environment.
- And above all, a secure and stable future for you and your family in the US.
Why Choose the EB-5 Visa Program?
The EB-5 Visa offers a unique pathway to U.S. residency through investment, combining economic contribution with the opportunity to live, work, and study in the U.S. With the recent reforms, the program is more robust and investor-friendly, offering enhanced protections and benefits for investors.
Earlier, the most popular way for Indians to move to the US and Get a green card was either through Family Sponsorship or through employment. But now, under both these routes, it has become extremely difficult as you have to wait in the queue for several years (in some cases 50 years to 100 years or even more).
The situation is even more precarious for H1B visa aspirants since even if you have a good job, you may not be able to continue living in the US as the visa allocation is now based on the lottery system. Even if you are lucky enough to get the H1B lottery, if you lose your job, as is rampant nowadays, you may have to leave the US if you are not able to find another very soon.
In this scenario, the EB5 Visa program has emerged as a blessing for those seeking a secure and certain future in the US.
It is one of the easiest and fastest ways of getting US permanent residency. All you have to do is invest US$ 800,000 in a qualifying commercial project which is approved by the US government and creates jobs for Americans.
Through this program, you can get a green card in about two to three years (and in some cases even within a year), depending upon your country of birth and the project selected for investment.
It is also considered one of the most certain ways of getting a US permanent residency if you have the right team of lawyers and advisors working with you and guiding you on the right documentation and process to follow.
What are the Requirements for EB5 visa?
Unlike other immigration programs, the EB5 visa does not require you to meet various conditions, like education qualifications, work experience, English language test scores etc. The main requirement is funds for investment. You must invest at least $ 800,000 in commercial projects in Targeted Employment Areas or TEAs ($ 1,050,000 in Non-TEA areas). Also, you have to demonstrate how you have acquired the funds for the above investment. This requirement can be easily met if you invest in a project sponsored by a Regional Center project.
EB 5 Visa Process and Timelines:
The process of getting a Green Card through EB5 Visa programs involves several steps, each involving variable time, as described below.
- When filing for your EB5 application, i.e., I526E, you must get the documentation of your source of funds and make the qualifying investment. This may take a few weeks to a few months, depending on the Nature of the source of funds, the availability of documents and the availability of funds and remittance.
- Approval of the I526E application may take a few months to a few years, depending upon the type and location of the project, project approval status and visa backlog.
- The next step is consular processing (for people applying outside the US) and getting a conditional green card. The steps involved are applying to the National Visa Center, booking an interview in the US consulate, getting the visa and moving to the US. This could take 6 months to 12 months time.
- The initial green card is valid for 2 years. You need to prove that you have stayed invested in a project for 2 years and that at least 10 jobs have been created for American citizens. After this, you can apply for the removal of conditions by submitting the I829 form. This may take around 2 years time.
- However, for those already in the US on a student visa or an H1B visa, this whole process is shortened with the help of concurrent filing for adjustment of status.
What are the EB 5 Visa investment requirements?
There are two main pathways to the EB5 Visa program: direct Investment and Regional Center Investment route.
Direct Project: In the Direct route, you invest in setting up your own business in the US, which is directly controlled and actively managed by you. You are also responsible for meeting conditions like job creation, compliance, reporting, etc., to ensure you get your green card. Apart from that, you also have to maintain at least 10 jobs for the US citizens
Regional Center project: A regional center is an organisation approved and regulated by USCIS to promote economic development in a specific region. Here, you’re investing with a group of investors in a project which is sponsored and managed by a regional center to get a green card quickly and easily. The regional center ensures that the money is invested wisely and requisite jobs are created. They are also responsible for all the legal compliances and reporting to the USCIS. The risk of not getting a green card is significantly reduced if you invest in a regional center project.
How to Select the Right Project for EB5 Visa?
Investing in the EB5 Visa program involves a huge financial commitment. Hence, it is paramount that you select the project for investment wisely so that you not only get the Green card but also your investment.
- One should start by looking at the regional center’s history track record. How many I526 and I829 approvals have they received, how long have they been in the business and have they had any compliance issues?
- The management team’s experience, background and expertise.
- One should check the Status of USCIS approval. The project should submit form I956F and check on its approval status
- One should look into how the project will create jobs.
- Always prioritise projects with a completion guarantee
Financial due diligence:
- Regional center’s track record in returning investor’s money,
- Developer’s track record in completing the project.
- Project viability, business plans and financial projections.
- Financial strength and capital stack, developer’s financial contribution to the project.
- Completion guarantee
- Current status of the project, exit strategy and risk mitigation measures.
There are other important parameters that one should look for, such as commitment to transparency, the practice of regular disclosure and the regional center’s network and resources.
Thus, as can be seen above, the EB5 Visa is one of the fastest and surest ways of getting a US green card by simply investing in the US economy for job creation. All you need to do is invest $800,000 in a qualifying project and get a green card with your family.
However, the actual execution process involves several steps which require navigating legal and financial technicalities. Hence, it is important to have the right team of lawyers, financial advisors, and regional centres to ensure you achieve your immigration goal while safeguarding your investment.
Kindly schedule a call to learn more about the EB5 program and how we can help you with your journey.
Begin Your EB-5 Visa Journey with Acquest Advisors:
Acquest Advisors is at the forefront of navigating the EB-5 investment visa landscape. Our expertise in understanding the intricacies of the program, coupled with a comprehensive approach to project selection and due diligence, ensures that your investment not only complies with the legal requirements but also aligns with your long-term goals.
Ready to explore the opportunities provided by the revamped EB-5 program? Click here to schedule a free consultation with our experts and take the first step towards securing your future in the United States.
Your Gateway to U.S. Residency Through EB-5 Investments:
The EB-5 Visa is more than an investment; it’s a gateway to new beginnings in the U.S. With Acquest Advisors, embark on a journey where your investment journey is guided, secure, and aligned with your aspirations for a prosperous future in America.
ABOUT ACQUEST ADVISORS
Acquest Advisors is an immigration advisory firm specialising in Business Immigration and Residency/Citizenship by Investment programs offered by Governments of American & European countries.
We provide end-to-end service to our Clients – from planning the source of Funds to selecting the right investment vehicle (Projects /Property /Business), preparation of Business plans, start-up funding, foreign remittance, etc. and handhold them throughout the immigration process.
We have an in-house team of experts and a network of professionals (renowned Attorneys, Bankers, Chartered Accountants, Regional Centres, Developers, Fund Managers, Business sellers, etc.) to offer comprehensive immigration solutions.
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FAQs
The EB-5 visa initially grants conditional permanent residence status for two years. The applicant must file Form I-829, officially known as the “Petition by Investor to Remove Conditions on Permanent Resident Status,” within ninety days of the green card expiration date to request the removal of the conditions from the document after the two-year period has passed. As part of this procedure, they must collect records related to the current state of the firm, such as data on the total amount of capital invested, the number of employees, and the location of the business.
If all conditions are satisfied, the applicant will be given lawful permanent residency, meaning they won’t need to renew their green card for ten years.
The approval rate for the EB-5 Visa varies by year and depends on the applicant’s adherence to the program’s requirements. It’s imperative to ensure that your application is complete and meets all requirements to improve your chances of approval. Historically, the approval rate has been relatively high, often exceeding 80%, especially for well-prepared applications. However, the rate can fluctuate based on changes in immigration policies, the quality of the investment projects, and the thoroughness of the documentation provided by applicants.
To qualify for the EB-5 investment visa, an applicant must invest a minimum of $ 1,050,000 in commercial projects in the United States in non-TEA areas. However, if the investment is made in a Targeted Employment Area (TEA), which includes rural areas or regions with high unemployment, the required investment amount is reduced to $ 800,000. This investment must create or preserve at least ten full-time jobs for U.S. workers. You must also prove how you acquired the money for the above investment. If you invest in a project sponsored by a Regional Centre project, you can quickly meet the criteria.
Yes, Indians are eligible to participate in the EB-5 visa program. There are no nationality restrictions for this visa category. As of May 2024, almost 92% of all EB-5 visas were issued to Indian citizens. Indian investors, like those from other countries, must meet the program’s investment and job creation requirements to qualify. Given the increasing interest from Indian nationals, the demand for EB-5 visas for Indians has grown, contributing to the overall popularity of the program.
Whether EB-5 investors get their money back depends on the success of the investment project. The EB5 visa program requires a high-risk investment, so there is no guarantee of a return. Investors typically expect their funds to be returned upon the project’s completion and successfully creating the required jobs, but this outcome depends on the project’s performance and specific terms outlined in the investment agreement.