EB-5 Immigrant Investor Program

Advantages

• The immigration process period is relatively short, typically around 1 to 2 years.
• Freedom to live and relocate anywhere within the United States.
• Children are eligible for free public education, which reduces educational expenses, and they also have easier access to employment opportunities. Once they obtain permanent residency, admission to medical or dental schools becomes possible.
• There are no specific requirements regarding the investor’s education, work experience, age, or English proficiency.
• The investor is free to engage in other businesses anywhere in the United States.

Eligibility Requirements

• 1. Investment in a New Commercial Enterprise

  The EB-5 Immigrant Investor Program requires an investment in a new, for-profit, and ongoing business enterprise within the United States.
  There are no restrictions on the type of business entity; it can be a sole proprietorship, partnership, corporation, joint venture, holding company, or any other legal business structure.

• 2. Minimum Investment Amount and Eligible Funds Minimum Investment Amount

  The minimum investment required for the EB-5 Immigrant Investor Program is USD $1.05 million. However, for investments made in Targeted Employment Areas (TEAs), the minimum is reduced to USD $800,000. It is important to note that this is a minimum investment amount, not a maximum, and that the $800,000 threshold applies only to investments made in TEAs.

  * What is a Targeted Employment Area (TEA)?

  A TEA is an area designated by the state government and refers to either: 1) A high-unemployment urban area where the unemployment rate is at least 1.5 times the national average; or 2) A rural area located outside of cities or towns with a population of 20,000 or more.

  (Note: A TEA must be officially designated by the state government, not simply considered as such by the investor. Therefore, confirmation of official designation should be obtained before making an investment.)

  Eligible Investment Assets

  Assets eligible for investment include almost all types of tangible assets such as cash, equipment, inventory, and securities. However, assets held in joint ownership with third parties (excluding the investor’s spouse) are not considered eligible. Investments made using bank loans are permitted, but loans secured by the new U.S. enterprise itself are not allowed as part of the qualifying investment.

• 3. Creation of 10 New Full-Time Jobs for U.S. Workers

  The requirement to create 10 new jobs must be fulfilled by the end of the two-year conditional permanent residency period. The jobs must be full-time positions.
  At the time of hiring, the employees must already hold lawful employment status in the United States that is independent of the investor’s enterprise. Family members of the investor, as well as individuals holding non-immigrant visas such as E-2 or H-1, cannot be counted toward the job creation requirement.

  * Ways to Satisfy the EB-5 Job Creation Requirement:

  1) If the investor establishes a new business from scratch, simply hiring 10 new full-time employees will meet the requirement.

  2) If the investor acquires an existing business established after November 29, 1990, the business must be restructured or expanded so that either the net worth or the number of employees increases by at least 40%.

  3) If the investor acquires a troubled business (one that has incurred a net loss of at least 20% of its net worth over the past 12 or 24 months), maintaining the pre-investment number of jobs will satisfy the requirement.

  4) If the investment is made through a designated Regional Center under the Pilot Program, the 10-job creation requirement may include both direct and indirect employment.

Important Notes

• The investment capital must be lawfully obtained through legitimate means. The investor is required to prove that the funds come from lawful sources such as business profits, salary, investment returns, gifts, or inheritance.

• No EB-5 investment can guarantee the return of the principal. If the principal is guaranteed, the investment will not qualify for approval under the EB-5 program. Therefore, investors must carefully and reasonably assess the stability and profitability of any EB-5 investment opportunity.

• In order to have the conditions removed from the conditional permanent resident status, the investor must prove that the invested business has received sufficient investment ($1.05 million or $800,000, depending on the area) and that the job creation requirements have been met. This means that the investor must carefully review and evaluate the job creation aspect as well. In addition, the sustainability and ongoing operation of the business will also be considered when determining whether to remove the conditions.