What is an EB5 visa?
The EB5 Immigrant Investor Program is a US Investment Visa program that allows foreign investors to obtain lawful permanent residency (Green Card) by making a qualifying investment in the U.S. economy and creating jobs for American workers. Established by the Immigration Act of 1990 and administered by U.S. Citizenship and Immigration Services (USCIS), the program requires investors to invest $1.05 million in a new commercial enterprise, or $900,000 if the investment is made in a Targeted Employment Area (TEA)—a rural or high-unemployment area. One of the key EB5 visa requirements is that the investment must create at least 10 full-time jobs for U.S. workers.
When considering the EB5 visa requirements, investors can choose between direct investment, where they actively manage a business, or the Regional Center Program, which allows passive investment in USCIS-approved projects that use economic modeling to count direct, indirect, and induced job creation. Understanding the EB5 visa requirements is essential for applicants to ensure compliance with job creation and investment obligations. The US Investment Visa program provides an opportunity for entrepreneurs and investors to gain permanent residency while contributing to the U.S. economy through EB5 investment projects.
The EB5 visa process involves filing Form I-526E, obtaining a two-year conditional Green Card, fulfilling the job creation requirement, and later filing Form I-829 to remove residency conditions and gain permanent status. One of the major EB5 visa requirements includes proving that the required jobs have been created and sustained throughout the conditional residency period. Investors who meet all US Investment Visa criteria can secure their Green Card through investment and eventually apply for U.S. citizenship. The program offers several benefits, including no employer sponsorship requirements, the freedom to live, work, and study anywhere in the U.S., and a direct pathway to U.S. citizenship after five years. Additionally, there are no age, education, language, or work experience requirements, making it a flexible option for foreign investors seeking long-term residency and business opportunities in the United States. By meeting all EB5 visa requirements, investors can successfully navigate the program and secure their Green Card through investment.
What is an EB-5 Limited Partnership?
A limited partnership combines corporate limited liability with partnership taxation and consists of a general partner and one or more limited partners. A CMB affiliate forms each limited partnership to act as the “new commercial enterprise” under the EB5 program. Understanding the EB5 visa process is essential for investors to ensure compliance with program requirements. One of the key benefits of the EB5 program is that it provides a pathway to obtaining a US Green Card through investment. The limited partnership agreement details, among other things, the rights and powers of the limited partners and general partner, percentages of ownership, how distributions of profits can occur, and the compensation paid to the general partner. The general partner manages the day-to-day operations of the limited partnership. The limited partners have limited duties and decision-making powers within the partnership but are liable only for the amount of their investment.
How safe is my EB-5 investment?
The EB5 visa process requires that the EB5 investor make an “at-risk” investment, which means there must be a risk of loss and a chance for gain. CMB has attempted to structure our EB5 investment projects to mitigate risk given the legal requirement that the EB5 investments be truly “at-risk.” However, the potential reward is securing a US Green Card through investment, allowing investors and their families to live, work, and study in the United States.
A crucial part of the EB5 visa process is ensuring that EB5 investment projects create the required jobs while minimizing risk. For those seeking a US Green Card through investment, meeting job creation requirements is essential. CMB requires its borrowers to identify sources of revenue for the repayment of the loan. We also require many different types of collateral for the loans, such as membership interest pledges, payment guarantees, and intercreditor agreements to secure repayment of the loans.
By fulfilling all EB5 program criteria, investors can successfully obtain a US Green Card through investment. This program offers a direct route to permanent residency for those willing to invest in the U.S. economy. Many international investors have already benefited from the opportunity to secure their US Green Card through investment, making it one of the most sought-after immigration pathways.
What are the Benefits of the EB-5 Visa?
PATH TO CITIZENSHIP
After 5 years of residency, visa holders can apply for U.S Citizenship.
RESIDENCE FLEXIBILITY
Visa holders have the freedom to live anywhere in the U.S., and there is no requirement to reside based on the EB5 investment projects location.
EDUCATION
Green Card holders may attend U.S. schools at the same cost as citizens. The U.S. has some of the highest-rated schools and universities in the world.
EMPLOYMENT FLEXIBILITY
Visa holders can work anywhere without employer sponsors or start their own business anywhere within the U.S. 50 states and its territories.
The EB-5 Process Timeline
Due Diligence
A potential investor interested in the EB5 program should begin by conducting due diligence on available EB5 investment projects, and EB5 visa consultant firms. The EB5 visa process takes years to complete; it is important that the investor is comfortable with their choice in all three areas.
Select an EB-5 Investment
Once the investor selects the regional center and EB5 investment, they will need to work with their EB5 visa consultant to ensure the source of their investment funds will be acceptable to the USCIS. In Texas Capital Partners EB5 Partnerships, our administrative placement agent will review the investor’s suitability and compliance with applicable securities laws. The investor will then transfer their funds.
I-526E Petition
Once subscribed to an EB5 partnership, the investor will be able to work with their EB5 visa consultant to file their first immigration petition with USCIS: the I-526E petition for conditional permanent residency. The USCIS will adjudicate this petition to determine that the investor’s source of funds is acceptable, and (through association with the regional center’s I-956F petition) that the EB5 investment is likely to meet all EB5 requirements.
Consulate Interview
When the I-526E petition is approved, the EB-5 investor applies for conditional residency through a consulate interview (or an adjustment of status, if he or she is already in the U.S. on another visa).
Conditional Permanent Residency
Once the investor is approved for a visa and a visa is available, the investor and qualified family members are issued conditional green cards that are valid for two years. The EB-5 investor must enter the U.S. within 180 days if they are not already in the U.S. This entry into the U.S. then begins a 24 month period of conditional permanent residency.
I-829 Petition
Between months 22-24 of the EB-5 investor’s conditional permanent residency period, the investor’s immigration attorney files the I-829 petition to remove the conditions on the green card and achieve permanent residency. The USCIS will adjudicate this petition to determine that all requirements were met, and all requisite jobs were created.
Return of Capital
In Texas Capital Partners EB-5 partnerships, once all outstanding investments have been returned to the partnership, and immigration goals have been met, the balance of each investor’s capital account can be returned according to the Partnership Agreement.
Requirements
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The EB5 minimum investment requirement to qualify for an EB5 Visa is currently $900,000 when the investment is located in a Targeted Employment Area (TEA).
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An EB5 investment must create at least 10 new full-time jobs for American workers.
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The EB5 investment must satisfy the USCIS “at-risk” requirement for the duration of the immigrant investor’s two-year sustainment period.
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The EB5 investor must prove that the funds used for the investment were obtained lawfully.
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A successful EB5 investment results in permanent residence status in the United States for the EB5 investor, their spouse, and unmarried children under 21 years of age.
Regional Center
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Regional Center EB-5 investments usually take the form of a limited partnership. Immigrant investors pool their investment funds to either lend or make an equity investment, typically for a large-scale commercial project. Regional Center investments can utilize economic modeling to claim direct, indirect, and induced job creation to satisfy the EB-5 requirement of 10 new American jobs per investor.
Direct EB-5 Investments
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Direct EB-5 investments require direct job creation, supporting at least 10 full-time employees per investor for two years. Investors must submit payroll and citizenship proof. Since 2022, each direct EB-5 project is limited to one EB-5 petition. Texas Capital Partners guides investors through Direct EB-5 and Regional Center opportunities, ensuring compliance and maximizing Green Card success.