EB5 Investment
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EB5 Investment
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RURAL EB-5 INVESTMENT
A Faster Path to U.S. Green Cards
Investing in a rural EB-5 project is one of the fastest ways to get U.S. Green Cards for yourself and your family. Under the EB-5 program, investors who choose EB-5 projects in rural Targeted Employment Areas (TEAs) gain exclusive benefits. These benefits include a reduced minimum investment amount and a faster immigration process.
By investing $800,000 in a rural EB-5 project, you could obtain work and travel authorization in just days. Your initial rural EB5 Green Card could be approved in a matter of months. For those facing roadblocks to U.S. immigration, such as Indian and Chinese nationals, the benefits of making a rural EB-5 capital investment are especially significant.
We invite you to consider how a high-quality, low-risk EB5 rural investment offers a faster, safer path for you and your family to live, work, and study in the United States.
What Is a Rural EB-5 Investment?
A rural EB-5 investment is a qualifying capital investment in a project that is in a rural TEA as defined by the EB-5 program. Rural TEAs are one of two types of TEAs. The other type is a high-unemployment, or urban, TEA. These two TEA categories were created to encourage EB-5 investment in U.S. locations that have a significant need for projects to stimulate economic growth.
EB-5 VISA-COST
The minimum qualifying amount for an EB-5 investment is contingent upon the project location. In cases where the EB-5 project is situated within a Targeted Employment Area (TEA), the requisite investment amount is $800,000. Conversely, for projects outside of a TEA, investors are obligated to contribute $1,050,000 to secure a Green Card.
PROJECT INVESTMENT
ADDITIONAL COSTS
Why Invest in EB-5 Rural Real Estate Through a Regional Center?
Most investors choose projects sponsored by EB-5 regional centers under the EB-5 Regional Center Program.
Regional centers are entities designated by United States Citizenship and Immigration Services (USCIS) to sponsor EB-5 projects. Regional centers manage the flow of EB-5 funds and ensure projects comply with all EB-5 program rules and USCIS requirements.
Regional center sponsorship benefits both EB-5 projects and investors.
For project developers, a benefit of regional center sponsorship is the ability to pool funds from multiple foreign investors.
Under the EB-5 Reform and Integrity Act of 2022, pooling funds is allowed only for projects sponsored by regional centers. Since most rural real estate projects seek more than $800,000 in EB-5 funding, most are sponsored by regional centers.
For EB-5 investors, a key benefit of regional center sponsorship is that the project has more flexible job creation rules. Under the EB-5 program, each investor must create 10 qualifying jobs. Without a regional center, only jobs created directly by the project count. For regional center projects, though, indirect jobs from spending and revenue can be counted as well.
This method of calculating job creation makes regional center rural EB-5 projects safer for EB-5 investors. As a result, investing through a regional center can increase your chances of receiving timely USCIS approval and your U.S. Green Cards.
Lower Investment Amount
By investing in a rural targeted employment area project, you qualify for the EB5 rural minimum investment amount of $800,000. The standard minimum investment amount is $1,050,000.
REGIONAL CENTER V/S DIRECT EB5 INVESTMENT
In 1992, Congress created an additional component of the EB-5 program, the Regional Center Pilot Program. A Regional Center is a private or public entity designated by USCIS that is authorized to coordinate with multiple immigrant investors and to pool their investments for greater economic impact. Regional Centers are authorized to operate within defined geographic regions and within specific industry sectors.
There are several essential differences between direct EB-5 and the Regional Center Program. The Regional Center Program allows for the use of economic modeling to calculate the indirect and induced job creation related to all spending for each project. This means that in the Regional Center Program, the EB-5 investor can rely upon direct, indirect, and induced jobs to meet the job creation requirement of the EB-5 program.
Regional Center
Regional Center EB-5 investments, like those offered by CMB, usually take the form of a limited partnership. Immigrant investors pool their investment funds to either lend or make an equity investment typically for a large-scale commercial project. Regional Center investments are able to utilize economic modeling to claim direct, indirect, and induced job creation to satisfy the EB-5 requirement of 10 new American jobs per investor.
Direct EB-5 Investments
Direct EB-5 investments can only utilize direct job creation to satisfy EB-5 requirements. This means that the target project must directly support at least 10 full-time employees per EB-5 investor for a minimum of two years. A direct EB-5 investor must submit documents (payroll information and proof of citizenship) for each employee with their immigration petition. Additionally, as of 2022, a direct EB-5 investment project can only be associated with one EB-5 petition.
Why H-1B Workers Should Invest in an EB-5 Visa
The EB-5 program offers some notable benefits over an H-1B visa.
Employment Flexibility
An H-1B worker who is terminated must find a new sponsor within 60 days. However, an EB-5 visa is not connected to your employment status.
As an EB-5 visa holder, you can work for any company without needing an employment sponsor. Applicants can negotiate higher salaries because their visas are not dependent on sponsorship. Under this program, you don’t even have to be employed.
Travel Flexibility
EB-5 visa holders gain much greater travel flexibility. They can leave and reenter the United States as often as they like, as long as they are physically present for at least six months each year.
Family Members Benefit
An EB-5 visa holder can also bring their immediate family members to the United States. Family members receive the same permanent residency benefits, such as work and education opportunities.
Plus, an EB-5 visa holder’s children can keep their Green Cards after they turn 21, unlike children of H-1B holders who must apply for their own visas.
How Can H-1B Holders Fund an EB-5 Investment?
H-1B visa holders can fund their EB-5 investment using one or more of the following sources.
Personal Savings
Such as a high-yield savings account or checking account. High-yield savings accounts offer greater interest payments and are a good place for an emergency fund.
Retirement Accounts
Withdrawals from a 401k retirement account plan are possible, but watch out for an early withdrawal penalty. You may have to pay taxes.
Health Savings Account (HSA)
HSAs are known for their tax benefits, and allow you to get reimbursed for medical expenses with tax-free withdrawals from your account.
Other Investment Accounts
These can include equity market investments, mutual funds, ETFs, index funds, bonds, money markets, or an employee stock purchase plan. Withdrawals are not tax-free and you’ll be responsible for capital gains taxes.
Property Sales
Selling of real estate investments or other assets.
Gifts
Free money lawfully obtained from relatives or friends.
Home Equity Line of Credit (HELOC)
A secured loan that lets homeowners borrow money out of their home’s equity.
Securities-Backed Line of Credit
A loan that uses investment securities (such as stocks, bonds, or mutual funds) as collateral.
Other Loans
From a friend, family member, bank, financial institution, or any other lawful source, secured by the investor’s personal assets. Unsecured loans can also be used to fund an EB-5 investment, as long as there is sufficient source of funds documentation.
It’s a good idea for each applicant to hire a financial planner to help them with funding questions.
Many EB-5 applicants also pay for other services that include:
- Hiring an immigration attorney.
- Working with a regional center.
- Translation services.
The total amount of each of these additional fees may vary considerably between individuals.
EB5 ATTORNEY GUIDE
How to Choose the Right Legal Partner for Your Investment
The EB-5 Program is one of the fastest ways to obtain a U.S. Green Card. However, obtaining an EB-5 visa is a highly complex, regulated process that requires careful planning, strategic decision-making, and strict compliance with United States Citizenship and Immigration Services (USCIS). Mistakes can be costly leading to delays and even denial of your application.
Choosing the right EB-5 attorney is one of the most critical decisions you will make as an EB-5 investor. An experienced legal advisor not only ensures compliance with USCIS requirements, but also helps you evaluate the immigration requirements of an EB-5 Project, manage government interactions, and stay compliant throughout the process.
In this article, we provide an overview of what EB-5 investors need to know and offer clear, practical advice on how to choose the right legal partner for your investment success.