What is the EB5 Visa?
Each year, the United States Citizenship and Immigration Services makes about 10,000 EB-5 visas available for eligible foreign investors, says an article on EB-5 Capital. The United States employment-based fifth preference category EB-5 visa or the EB-5 Immigrant Investor Program requires you to meet the capital investment specifications and job creation requirements, while also ensuring that the business receiving your investment is eligible for the EB-5 program.
The EB-5 Immigrant Investor Visa is a federal program that issues green cards to all foreign nationals who would like to invest a minimum of $500,000 to $900,000 (after November 21, 2019) in a project that will create jobs within the United States of America. This program became popular when banks were hesitant to offer loans at the time of the 2008 economic recession.
The EB-5 program was created to encourage not only foreign investments but economic growth for the US as well. The EB-5 program is available for foreign investors and their families, including unmarried children below the age of 21, only when they are capable of investing the minimum amount in a targeted employment area, a high unemployment area or a rural area, such that it will create a specified number of jobs.
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If your application is approved, you will be granted residence in the US for two years.
Investments for EB5 Visa Program
The investment amount begins from $500,000 and can go up to $1 million. The investment can be made in the form of cash, cash equivalents, inventories, equipment, secured indebtedness, tangible properties, etc. The investment must be done at locations where the unemployment rate is at least 150% of the national unemployment rate at the time of investment.
EB-5 Business Entities – Where to Invest?
There are multiple businesses in which you can invest, such as new commercial enterprises or a regional center. New commercial enterprises welcome profit entities that can take any one of the many business structures, including business trusts, sole proprietorships, corporations, general partnerships and other publicly or privately owned business structures. Make sure you are investing in commercial entities that have been set up after November 29, 1990. However, some older commercial entities qualify if the investment enhances the number of employees or the net worth by 40%.
Also read: EB5 Visa Application Procedure
It is always more beneficial for you to invest in regional centers though. This is because you do not have to set up the EB-5 projects all by yourself.
EB-5 Job Creation
The jobs must be created within at least two years after the foreign investor has received their residency approval. You, as an investor, should be able to prove that your investment has created jobs for people who work directly within the commercial project that has received the funds from you. However, when you invest in a regional center, you only need to show that 10 full time indirect job offers are available with your investment.
Once all the above requirements have been met and approved by the USCIS, you are free to apply for an EB5 visa.
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