5 Common Misconceptions About the EB5 Immigrant Investor Program

5 Common Misconceptions About the EB5 Immigrant Investor Program

The EB-5 Immigrant Investor Program was established by Congress in 1990 to encourage foreign investment in the U.S. Over the past 26 years, the program has allowed thousands of foreign investors to make substantial capital investments in the U.S. Although the program has been in force for more than a quarter century, there are still some misconceptions about its purpose. Here are the five most common misconceptions:

1. Getting an EB5 visa guarantees you a Green Card.

To participate in the EB-5 visa program, you must be a foreign national and have found a business in which to invest where your capital is considered at-risk (meaning a return on your investment is not guaranteed). You must file an I-526 petition with the USCIS, which scrutinizes the source of your capital and the project’s validity. Once the petition has been approved, you may adjust status if you are lawfully in the U.S. to apply for a green card — however, the green card is only good for two years unless you file an I-829 petition and are able to demonstrate that the investment capital is still at-risk and you meet other stringent requirements.

2. Getting an EB5 visa will fast-track a Green Card approval.

The steps described above can take anywhere from a few months to a few years, and may be longer, depending on your country of origin. There is no fast-tracking process for any of the stages — in other words, no short cuts to a green card.

3. You must be wealthy to obtain an EB5 visa.

The minimum qualifying investment for an EB-5 immigrant investor visa is $1 million unless the business is located in a high unemployment area (at least 150% of the national average rate) or rural area, where the minimum investment is $500,000.  While that certainly is a lot of money, there are many legitimate sources for this type of funding, including family loans, gifts, inheritances, home equity loans and more.

4. The EB5 visa program benefits only the wealthy.

One of the primary goals of the EB-5 immigrant investor program is to create jobs for American workers. Each investment must produce at least 10 new jobs within two years. Many EB-5 investments create more than 10 jobs, providing additional economic opportunities in communities across the U.S.

5. EB5 visa program investors are not heavily scrutinized by the U.S. government.

Foreign nationals investing in the EB-5 program must undergo the same rigorous background checks by the USCIS, Department of State, and/or the Department of Homeland Security, as green card applicants. The source of funds and the business being invested in are also scrutinized for legitimacy and proven potential.

If you are considering starting a new business in the U.S. and are interested in a path to U.S. citizenship, you need the help of a qualified EB-5 visa attorney. Contact one of our experienced business immigration attorneys at (305) 921-0440, or email us at info@jflawfirm.com.

 

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