Definition
The EB5 VISA is an immigrant visa designed to attract investments from foreign non-citizens into the U.S. economy, thereby fostering job creation. The program, established by the Immigration Act of 1990, allows investors to obtain a conditional green card by investing a minimum of one million dollars into a U.S. business. These investments must create at least 10 full-time jobs for qualifying U.S. workers within two years. If the project falls within a Targeted Employment Area (high unemployment or rural area), the required investment can be reduced to $500,000. In cases where the business qualifies as “troubled,” preserving jobs may also meet the requirements.
Examples
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Real Estate Developments: Major new developments, such as high-rise residential buildings, commercial offices, and mixed-use facilities, often use EB5 funds. The construction of these buildings demands a broad range of contractor services and spurs job creation in the local job market.
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Hotels and Casinos: High-profile developments like hotels and casinos in urban locales such as Las Vegas leverage EB5 investments to finance construction and operations. These sectors can generate significant employment opportunities, contributing to the local economy robustly.
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Renovation Projects: Projects aimed at reviving economically struggling areas, such as the redevelopment of old buildings in historically decimated districts, can qualify for reduced EB5 investment thresholds due to their benefits in job creation and community revitalization.
Frequently Asked Questions (FAQs)
1. What is the minimum investment for qualifying under the EB5 program? The minimum investment is $1 million. However, if the investment is in a Targeted Employment Area, the minimum investment is reduced to $500,000.
2. What is a Targeted Employment Area (TEA)? A TEA is a location that is either a rural area or an area experiencing unemployment of at least 150% of the national average rate.
3. How many jobs must be created or preserved to qualify for the EB5 program? At least 10 full-time jobs must be created or preserved per investment.
4. How long do investors have to create the required number of jobs? The jobs must be created within two years of the investment.
5. Can the entire family of the investor benefit from the EB5 program? Yes, the investor, their spouse, and unmarried children under the age of 21 can all receive conditional green cards.
Related Terms with Definitions
- Conditional Green Card: A status granted to EB5 investors, valid for two years, contingent upon meeting the program’s terms and conditions.
- Permanent Residency (Green Card): Subsequent to removing conditions imposed on the EB5 visa, investors can obtain permanent residency.
- Direct Jobs: Full-time employment positions directly created by an investment enterprise.
- Indirect Jobs: Jobs created collaterally through the capital investment or in affiliated businesses.
- Redeployment of Funds: The process of reinvesting EB5 capital into qualified investments once an initial project has completed.
Online Resources
- U.S. Citizenship and Immigration Services (USCIS) Overview
- Investing in the USA: EB5 Visa Program Details
- EB-5 Investors Portal
References
- U.S. Citizenship and Immigration Services (USCIS)
- American Immigration Lawyers Association (AILA)
- “EB-5 Attorney’s Honest Advice for Your Green Card” by Richard A. LeVine
Suggested Books for Further Studies
- “The EB-5 Handbook: A Guide for Investors and Developers” by Michael A. Olivas
- “U.S. Investment Visas: Charting a Course for Success” by Roger Lee
- “EB-5 Visas & Real Estate Development” by Rachel D. Caputo
