Administered by the U.S. Citizenship and Immigration Services (USCIS), the EB-5 Program, also known as the Immigrant Investor Program, allows qualified foreign investors who meet specific capital investment and job creation requirements, to obtain their permanent residency and become proud contributors to U.S. communities.
Congress created the EB-5 Program (the “Program”) in 1990 to benefit the U.S. economy by attracting investments from qualified foreign investors. Under the Program, each investor is required to demonstrate that at least ten new jobs were created or saved as a result of the EB-5 investment, which must be a minimum of $1,050,000, or $800,000 if the funds are invested in certain high-unemployment or rural areas.
In 1992, Congress enhanced the economic impact of the EB-5 program by permitting the designation of Regional Centers to pool EB-5 capital from multiple foreign investors for investment in economic development projects approved by U.S. Citizenship and Immigration Services (USCIS) within a defined geographic region. This measure has been a tremendous success. Today, 95% of all EB-5 capital is raised and invested by Regional Centers.
Since the 2008 financial crisis, access to capital has been constricted and municipal budgets continue to face significant shortfalls. In many regions, EB-5 investments have filled the funding gap, providing a new, vital source of capital for local economic development projects that revitalize communities, create and support jobs, infrastructure, and services.
The EB-5 Program has attracted tens of billions in capital investment across the globe to support American businesses, creating hundreds of thousands of job opportunities for U.S. workers.
Additionally, the Congressional Budget Office (CBO) scored the program as revenue neutral, with administrative costs paid for by applicant fees.
More than 25 countries, including Australia and the United Kingdom, use similar programs to attract foreign investments. The American program is more stringent than many others, requiring substantial risk for investors in terms of both their financial investment and immigration status.
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Investments made through the U.S. EB-5 program must be “at risk” in the same way that investments in stocks or equity funds carry an inherent risk. There is no guaranteed financial return.
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If their application is approved by USCIS, EB-5 investors receive a conditional visa that is valid for two years. In order to receive a permanent visa, these investors must demonstrate that the legally required economic benefits flowing from their investments have been achieved.
Annually, the EB-5 Program accounts for less than 1% of the visas issued by the United States. Throughout the process, EB-5 investors are subject to the same background checks and national security screenings as applicants in any other visa category, and their ability to eventually apply for citizenship is subject to the same criteria as other visa holders. In every case, EB-5 investors must be able to demonstrate a lawful source and path of the funds to be invested, adding a layer of security that is not required by any other category of visa petitioners. Like any other investment vehicle, EB-5 investment funds are subject to U.S. securities and rigorous anti-fraud laws and regulations.
For more information about the EB-5 immigration process, please view our document below.
EB-5: An Engine for Economic Development
The EB-5 Regional Center Program (the “Program”) is a modern economic development tool that uses globalization to solve the need for flexible and affordable financing for regional economic development projects throughout the country. The Program has produced a dramatic increase in much-needed foreign direct investment (showed on the chart below) in the U.S. and has experienced exponential growth since 2008.
MYTH: EB-5 is “buying a green card”
FACT: This Code of Conduct (our “Code”) is our commitment to conduct EB-5 business with high ethical standards. Our commitment goes beyond technical Code interpretation. Where unspecific, our Code’s virtuous spirit prevails. IIUSA members and everyone working on IIUSA’s behalf, including its board of directors, officers, committee members, and employees are bound by our Code. When working with non-members, you should provide our Code and ask that they abide. Our Code is no substitute for sound judgment. When in doubt, ask: (1) Is this consistent with our Code? (2) Would I take responsibility? (3) Is this good for our EB-5 community? Be integrity’s voice. Hold each other accountable.
MYTH: EB-5 immigrant investors get a “fast track” to citizenship
FACT: Every visa category has its own “waiting line” and a set number of visas available in any given year. For EB-5, there are 10,000 visas available annually. Until 2014, EB-5 did not reach its annual 10,000 visa limit, therefore any petitioner who had an I-526 approved would have a visa available to them and their family. Since 2014 when Mainland China-born petitions reached retrogression because they hit their 7.1% per country cap for visas. As a result, Chinese applicants are now experiencing a wait of eight to ten years to obtain their EB-5 visa. Petitioners from any other country do not have this wait, but still must go through the involved process of applying, awaiting adjudication and consular processing.
MYTH: EB-5 is a way for criminals and terrorists to circumvent authorities and get into the United States.
FACT:EB-5 applicants are subject to the same checks and requirements as any other immigrant seeking to live in the U.S. In fact, there is an additional level of screening for EB-5 applicants as they need to prove a legal path of funds for their EB-5 investment. For more information, read our helpful “Understanding the Immigration Process” document.
MYTH: EB-5 is plagued with fraud.
FACT:While there have been cases of fraud and abuse in the Program that have surfaced, EB-5 is a largely successful program that creates jobs, brings investment to communities and improves their economies, all at zero cost to the taxpayer. Through the application of EB-5 investments, there are countless success stories unfolding in all corners of the country and in all types of industry sectors: healthcare, education, alternative energy, senior housing, and transportation, to name a few. IIUSA continues to support measures to improve Program integrity and enhance oversight to ensure EB-5 remains a viable and sustainable capital investment program for the long term.
As a seasoned expert in immigration policies and investment programs, I can confidently affirm that the EB-5 Program, administered by the U.S. Citizenship and Immigration Services (USCIS), stands as a flagship initiative for attracting foreign investments into the United States. My expertise is rooted in a comprehensive understanding of the program's historical evolution, its legislative framework, and its substantial economic impact.
The EB-5 Program, initiated by Congress in 1990, was strategically designed to stimulate the U.S. economy by enticing qualified foreign investors to make substantial capital investments. The primary goal is to create jobs and contribute to the economic development of the country. The stringent requirements set forth in the program demand that investors demonstrate their commitment by showcasing the creation or preservation of at least ten jobs as a result of their minimum $1,050,000 investment, or $800,000 if invested in designated high-unemployment or rural areas.
One pivotal enhancement to the program, introduced in 1992, was the establishment of Regional Centers. These centers facilitate the pooling of capital from multiple foreign investors for investment in approved economic development projects within a specific geographic region. Currently, a staggering 95% of all EB-5 capital is raised and invested through these Regional Centers, indicating the program's significant success in leveraging foreign investment for local economic development.
In the aftermath of the 2008 financial crisis, the EB-5 Program played a vital role in filling the funding gap that emerged, providing a crucial source of capital for diverse local projects. This infusion of capital has not only revitalized communities but has also fostered job creation, supported infrastructure development, and bolstered various services.
It is important to note that the EB-5 Program is a global leader, attracting tens of billions in capital investment to support American businesses. Contrary to misconceptions, the program is more rigorous compared to similar initiatives in other countries, demanding substantial risk from investors in terms of both financial investment and immigration status. This is underscored by the fact that EB-5 investments must be "at risk," akin to investments in stocks or equity funds, with no guaranteed financial return.
An integral aspect of the EB-5 Program is its emphasis on security and compliance. Investors undergo thorough background checks and national security screenings, mirroring the scrutiny faced by applicants in other visa categories. Furthermore, the path to citizenship for EB-5 investors adheres to the same criteria as other visa holders, and the demonstration of a lawful source and path of funds is a mandatory requirement, adding an extra layer of security unique to this program.
Addressing common misconceptions, the EB-5 Program does not offer a "fast track" to citizenship. The allocation of visas is subject to annual limits, and petitioners may face waiting periods. For instance, Chinese applicants have experienced an extended wait due to the annual country cap, while applicants from other countries do not encounter the same delay.
Concerns about fraud in the EB-5 Program are acknowledged, but it is crucial to recognize that while isolated cases exist, the program overall has been largely successful. The IIUSA (Invest Invest in the USA), an industry association supporting the program, actively advocates for measures to enhance oversight and improve program integrity.
In summary, the EB-5 Program stands as a robust engine for economic development, leveraging global investments to fuel local projects, create jobs, and contribute significantly to the U.S. economy. The evidence of its success lies in the billions of dollars invested, the diverse range of projects supported, and the stringent measures in place to ensure compliance and security.
