The EB-5 Immigrant Investor Program offers foreign investors the opportunity to obtain permanent residency in the United States by investing in job-creating projects. To participate in the program, investors are required to make a minimum investment in a qualifying commercial enterprise. The amount of EB 5 investment depends on whether the project is located in a Targeted Employment Area (TEA) or a non-TEA, as well as the date of investment.
Standard investment:
In a non-TEA: The minimum investment amount is $1.8 million.
In a TEA: The minimum investment amount is reduced to $900,000. TEAs are designated areas with high unemployment rates or rural areas, and investments in these areas receive a lower threshold to encourage economic development.
Investment increase:
The minimum investment amounts were raised from $1 million to $1.8 million for non-TEAs and from $500,000 to $900,000 for TEAs starting from November 21, 2019. This increase was part of the Modernization Rule introduced by the U.S. Citizenship and Immigration Services (USCIS).
Regional center investments:
Many EB-5 investors choose to invest through Regional Centers, which are organizations approved by USCIS to sponsor EB-5 projects. Regional Center investments offer investors the flexibility to count indirect job creation towards their job creation requirement, possibly reducing the risk associated with their investment. The investment amounts for Regional Center projects remain the same as those for direct investments, with $1.8 million for non-TEAs and $900,000 for TEAs.
Additional costs:
As well as the investment amount, EB-5 investors should also budget for other costs associated with the program, such as administrative fees, legal fees, USCIS filing fees, and investment management fees. These costs can vary depending on the complexity of the investment structure, the location of the project, and the services of immigration attorneys or consultants.
Risks and considerations:
While the EB-5 program offers a pathway to permanent residency in the United States, it is important for investors to carefully evaluate the risks associated with their investment. Factors such as project viability, job creation projections, immigration processing times, and changes to the EB-5 program should be considered before making an investment decision.
The amount of investment required for the EB-5 program is significant, with minimum investment amounts ranging from $1.8 million to $900,000 depending on the location of the project. Additionally, investors should budget for other associated costs and carefully assess the risks and benefits of the program before proceeding with their investment.
