EB5 investors must meet financial requirements to be approved for their visa, and these requirements go beyond the initial invested capital. You’ll also need to prove the source of the funds because they must be 100% legal.
We’ll discuss the many financial requirements that you need to know about before walking you through the costs and fees required.
Minimum Investment Amounts
The EB 5 program has minimum investment amounts, depending on whether you’re investing in a rural or urban area. Certain law changes can increase these amounts, but they’re currently outlined by the U.S. Citizenship and Immigration Services and are:
- $800,000 if you’re investing in a targeted employment area (TEA), which is designated to areas where unemployment is 150% of the national average. Often, these projects are in rural areas with fewer than 20,000 people.
- $1,050,000 if you’re investing in other areas of the country, such as a metropolitan area or even a medium-sized city.
You must meet EB 5 visa investment requirements, but it’s not just enough to have the funds. You also need to prove the source of your funds.
Source of Funds Requirements
Funds must be from lawful sources, and depending on when you file a petition, you may need to meet different requirements. For example, if petitions were filed before May 14, 2022, you will have different source fund requirements than after this date.
The USCIS has a very lengthy requirement guide that you can follow. However, the current requirements are the submission of evidence to prove the funds are legal, which may include one or a combination of the following:
- Business or tax records
- Personal tax returns
- Evidence relating to the source of admin or capital fees
Since May 14, 2022, you can also use borrowed or gifted funds as a source of income, but the funds must:
- Be gifted or loaned in good faith
- Not be from illegal sources
You may have to supply substantial evidence to prove that all funds are from legal sources. Agencies, such as Shoora EB5, can help you ensure that you have all of the documents you need to show proof of funds.
Investment in a New Commercial Enterprise (NCE)
NCEs have two main requirements that must be met:
- The NCE must be commercial in nature.
- The NCE must be a for-profit entity.
An NCE can be a new entity completely, but investors can also make an investment into a failing business in an attempt to save jobs. EB 5 Visas were created in the first place to provide economic benefits and can greatly help local governments.
If the business is lawful and meets the job creation requirements, it will fall within the scope of the program’s requirements.
Job Creation Requirement
In order to qualify for permanent residency, the investor’s project must create a minimum of 10 full-time positions within two years of the investor’s conditional permanent residency.
If making a direct investment, the EB5 investor must prove that the capital created jobs directly, whereas, with a Regional Center investment, jobs created directly or indirectly may count towards the requirement.
When comparing EB5 investment options, it’s important for investors to consider whether the project has a high chance of creating a sufficient number of full-time jobs.
Sustaining the Investment
EB5 investors who invest directly into a project will need to ensure the business is well-managed, continues to produce jobs and turns a profit.
Sustaining the investment will ensure a good ROI and help investors reach their immigration goals.
Additional Costs and Fees
In addition to the investing requirement of $800,000 or $1,050,000, EB5 investors will also incur other fees when pursuing their visa and residency.
These additional costs and fees can include:
- I-526 filing fee: $11,160
- I-829 filing fee: $9,525
- Administration fee
- Immigration lawyer fees
- Document translation fees
Additionally, investors should consider the lengthy EB5 visa processing time, which can take more than two years in some cases.
Risks and Considerations
Like any other investment, EB5 investments have inherent risks. In addition to financial risk, there is also immigration risk.
- Immigration risk: If the project does not meet the minimum job creation requirements, the investor’s application for permanent residency may not be approved.
- Financial risk: The EB5 visa program has substantial investment requirements. If the project fails, the investor also risks losing a significant amount of money.
Because these risks can have a significant impact on your finances and future plans, it is crucial to do your due diligence and carefully analyze each prospective investment project.
Selecting a project with a thorough plan and a high likelihood of producing jobs can help mitigate some of the risks of EB5 investments.
In Conclusion
Understanding the financial requirements for EB5 investments is the first step to obtaining an EB5 visa and, eventually, permanent residency in the U.S. Potential investors are advised to begin the process as soon as possible, as the EB5 visa processing time can be lengthy.
