What is the EB-5 visa program?

The EB-5 visa program is also known as the Immigrant Investor Program and is administered by the USCIS in an effort to promote economic growth and stimulate the U.S. economy. It allows for potential investors to the United States to obtain permanent residency by fulfilling certain commercial enterprise investment and job creation requirements.

Investors interested in participating in the EB-5 program must invest a certain amount of capital in a new commercial enterprise that creates jobs.

What is considered "capital" for purposes of the EB-5 visa?

"Capital" is broadly defined by the EB-5. According to the regulation:

Capital means cash, equipment, inventory, other tangible property, cash equivalents, and indebtedness secured by assets owned by the alien entrepreneur [immigrant investor], provided that the alien entrepreneur [immigrant investor] is personally and primarily liable and that the assets of the new commercial enterprise upon which the petition is based are not used to secure any of the indebtedness. All capital shall be valued at fair market value in United States dollars. Assets acquired, directly or indirectly, by unlawful means (such as criminal activities) shall not be considered capital for the purposes of section 203(b)(5) of the Act.

Capital can also include an investor's promise to pay (promissory note) so long as the note is secured by assets owned by the investor, the investor is liable for the debt and the assets of the investor do not include assets of the company being invested in.

What does it mean to invest?

An immigrant investor must clearly document the source of the capital being invested in order to prove that the funds belong to him. The regulation defines invest as:

Invest means to contribute capital. A contribution of capital in exchange for a note, bond, convertible debt, obligation, or any other debt arrangement between the alien entrepreneur [immigrant investor] and the new commercial enterprise does not constitute a contribution of capital..

How much capital must be invested?

Depending on the situation, the investor must either invest $500,000 or $1,000,000.

What is a new commercial enterprise?

A commercial enterprise is defined as any for-profit activity formed for the ongoing conduct of lawful business. It is important that the enterprise be designed to make a profit as opposed to a charitable organization.

What are the job creation requirements for the EB-5 program?

The EB-5 program requires that each investment of capital results in the creation of at least ten jobs.

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