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Investment Amount and Costs for EB-5 Visa

The minimum investment amount depends on the location of the project in the Target Employment Area (TEA)

Rural TEA - non-urban administrative district with a population of less than 20,000 people. Urban TEA (high unemployment) - all other territories with an unemployment rate above 150% of the national average.

  • Return on investment amount
  • Invested in
  • Sum
  • Targeted Employment Area (TEA) Project
  • authorized capital of a legal entity in the USA
  • $800,000
  • Project not in the target employment area (outside TEA)
  • authorized capital of a legal entity in the USA
  • $1 050 000

    There are no such projects on the market.

  • EB-5 Visa Standard Costs
  • Recipient
  • Sum
  • Administrative fee
  • Regional center
  • $60 000 — $80 000
  • Legal services
  • Immigration lawyer
  • $15 000 — $25 000
  • Review fee
  • United States Citizenship and Immigration Services (USCIS)
  • $12 160

Where to start

  • 1
    Assessing the source of your capital
  • 2
    Are you eligible for EB-5?
  • 3
    Choosing an Immigration Attorney with EB-5 Experience
  • 4
    Analysis and preliminary approval of the case by a lawyer
  • 5
    Collection of documents by the investor and preparation of the petition by the lawyer
  • 6
    Choosing a project for investment - we will help you with this

Investment risks

EB-5 investments must be made on an entrepreneurial risk basis, meaning there is no direct guarantee of return. The investor's capital cannot simply sit in an account; it must be provided to the job-creating company, such as a loan. Investment risks can be minimized in a well-structured project.

Deadlines:

Under the EB-5 Reform Act of 2022, petition review periods should not exceed 120-240 days, depending on the project's TEA. In practice, petition review periods for projects in rural TEAs currently range from 30 days to 12 months. For projects in urban TEAs, this period is approximately 24 months.

If the investor is already in the US (e.g. on H1-B, F1 visas), he/she can apply for a change of status from nonimmigrant to immigrant at the same time as the EB-5 petition. This speeds up the legalization process and allows obtaining a work permit (EAD) and an Advanced Parole Travel Permit, which are now issued in just a few months. If the investor is outside the US, he/she will need to go through a consular procedure to obtain a visa, which will lengthen the overall process.

nce the petition is approved and other formalities are completed, the investor (and their family) receive a conditional green card for two years. 90 days before the end of this period, they must file a petition on Form I-829 to obtain a permanent green card, providing documents confirming the creation of jobs and the use of invested capital in the project. You will receive these documents from your management company (RC).

Management

Step-by-step guide to obtaining an EB-5 visa

  • Stage 1. Studying the program conditions

    Step 1

    Am I eligible for a US immigrant visa?

    If you have no criminal record, no visa violations, and no criminal convictions in the United States, you will usually have no problems obtaining an EB-5 visa. If such circumstances exist, consult with an immigration attorney.

    Step 2

    Can I afford it?

    EB-5 is an investment program that requires an investment of $800,000, not counting additional costs for attorney services, project administration fees, and petition filing fees. The return on investment in a reliable project is usually minimal, and the period of capital remaining in the project can reach several years. Early withdrawal of capital from the project is usually impossible, and is fraught with a refusal to issue a green card and the loss of incurred expenses.

    Step 3

    Can I confirm the origin of the money?

    One of the most important aspects of the EB-5 program is to document the legal origin of your investments. Whether it is your earnings, dividends, the sale of an asset, or gifts or loans from friends or family members, you must be able to prove the legal origin of all capital invested.

  • Stage 2. Preparing a petition and choosing a project

    Step 1

    Contract with an immigration lawyer and prepare a source of funds

    Choose an immigration attorney with experience in EB-5, sign a contract with him. The attorney will begin reviewing your case by reviewing your documents. At this stage, you will be required to provide supporting documents, the entire process can take from a few weeks to a few months depending on how difficult it is to trace the source of funds

    Step 2

    Identify a project that fits your goals

    In parallel with Step 5, choose the most reliable EB-5 project. We will help you with this by conducting the necessary audit of the capital structure, job creation model, analysis of legal documents. As soon as you decide to participate in the project, sign the documents for participation in the project. Remember, your immigration lawyer has no right to recommend any investment projects to you.

    Step 3

    Transfer of capital to the project

    Once the process of confirming the source of capital is completed, you will be able to sign the documents to participate in the project and transfer the investment amount to the project escrow account. In some cases, the RC allows the transfer of the investment in several stages. The escrow agent usually allows the transfer of capital to the project after confirming the investor's petition to the Immigration Service.

    Step 4

    Filing an I-526 Petition with the USCIS

    Once the investment (in whole or in part) is made, the attorney will file your I-526 petition with USCIS. Within a few weeks, you will receive a notice confirming that your petition has been accepted.

  • Stage 3. Wait for petition approval

    Step 1

    Wait for your petition to be approved by the immigration service.

    The timeframes for reviewing a petition vary and cannot be influenced. According to the new law, the maximum review period for projects in rural TEAs is 120 days and 240 days for projects in urban TEAs. Accordingly, if you are applying for an expedited review, choose a project in a rural TEA. Review is not always carried out in the order in which the petition is received.

    Step 2

    When changing status, obtaining work authorization and exit authorization (for U.S. applicants with certain visa categories)

    If you are already in the United States on certain nonimmigrant visa categories, such as H1-B and F-1, you may file an application to change your status to immigrant status (Adjustment of status, Form I-485) at the same time as filing your I-526 petition. While waiting for your status to change, you may apply for work permits and permission to leave the country. The time frame for receiving documents is 2-3 months. Be sure to consult with your attorney on this matter.

  • Stage 4. Petition approved, conditional green card received

    Step 1

    Obtaining a Visa to Enter the United States at a Consular Office / Change of Status

    If you are outside the United States when your petition is approved, your attorney will file an immigrant visa application, and within a few months you will go through the immigrant visa process (which includes a document review, a medical examination, and an in-person interview) at a U.S. consular post abroad. Once this process is complete, you will receive an immigrant visa and will be able to enter the United States as an immigrant. If you are in the United States and have filed Form I-485 to adjust status, you do not need to obtain a visa.

  • Stage 5. Resident status during the term of the conditional green card

    Step 1

    The emergence of permanent resident status

    You will receive your green card by mail (usually through your attorney). Your first green card will be essentially the same as a permanent green card, except that it is valid for two years. The date of entry into the United States on an immigrant visa is the date you receive your green card for purposes of calculating time limits on it.

  • Stage 6. Obtaining a permanent green card

    Step 1

    Filing a Petition for a Permanent Green Card

    Within the last 90 days before the expiration of the two-year term of the initial green card, you must file an I-829 petition through an attorney. Soon after filing the I-829, you will receive a confirmation of the extension of the first green card for 48 months. You have the right to remain in the United States as a permanent resident, including the right to work and leave the country, during the entire period of consideration of the I-829 petition without any restrictions. To obtain a permanent green card, you must confirm that the following conditions are met: the creation of at least 10 jobs, the presence of capital in the project company for at least 2 years from the date of investment. The management company (RC) in whose project you invested is responsible for fulfilling these conditions.

    Step 2

    Obtaining a permanent green card

    Once your I-829 petition is approved, you will receive a permanent green card. At this point, the EB-5 program formalities are complete. After you have lived in the United States for four years and nine months (from the date your first green card became effective), you are eligible to apply for U.S. citizenship. You can do this yourself or have an attorney do it for you.

    Step 3

    Return of capital

    The terms and conditions for the return of your investment depend on the project you choose. Do not expect a quick return on your money, since the developers your company finances are not interested in "short" investments. The return period for your investment depends entirely on the terms of the loan agreement under which the capital was provided to the developer and the success of the project. Realistic return expectations: 5-7 years.

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    Regional centers

    EB-5 Regional Center Program

    • EB-5 Regional Center Program

      Passive investing

      The program was created in 1993 and provides an opportunity to invest in commercial enterprises operated by Regional Centers (RCs) accredited by the U.S. Citizenship and Immigration Services. In practice, RCs are owned or leased by management companies (MCs) that raise capital to implement projects.

    • Collective investment and job creation

      Job creation and additional benefits

      Investing through an RC allows EB-5 investors to invest collectively and use a project-wide job creation model. An additional benefit of RC projects is the ability to account for not only direct jobs but also indirect jobs created by the entire economic chain, providing a significant job reserve beyond the 10 jobs required by law for each investor.

    • Management company and distribution center

      Who is who

      RCs are formal participants in the process, having permission to attract investments in the state where the project is located. In practice, everything is determined by the management company , which creates the project for investment. To meet the EB-5 requirements, the management company attracts RCs with permits to work in this state. The management company acts as a manager of your company and monitors the execution of the loan agreement by the developer.

    What is a Targeted Employment Area (TEA)?

    There are two types:
    • 01

      Rural TEA - non-urban administrative district with a population of less than 20,000 people

    • 02

      Urban TEA (high unemployment) - all other areas with unemployment above 150% of the national average

    Rural TEAs provide the right to expedited review of petitions. The TEA type will be indicated in the project documents. We recommend that you double-check this with the TEA map.

    Документы проекта:
    Model of a typical EB-5 project?

    What does a typical EB-5 project look like?

    • New Company Establishment (NCE)

      01

      This is the company that EB-5 investors invest in. In a typical EB-5 project, each EB-5 investor purchases one share of the NCE, most often a limited liability company (LLC). The NCE is managed by a management company. The invested capital is then used as a loan to the joint venture enterprise (JCE).

    • Project Company (JCE)

      02

      The company where the jobs will be created is owned by the developer. From the NCE, the investors' money is pooled and issued, most often as a loan, to the JCE. The remaining funding comes from the developer, a bank, a grant, an investment fund, or any other source of capital.

    • Project model of the type "Loan" (Loan)

      03

      This is a project in which NCE provides funds from investors to the project company in the form of a loan. Each project has a fixed coupon rate and a loan term/maturity period. The fixed coupon rate is paid over the life of the loan, beginning on the day the funds are provided to the developer. In a typical EB-5 project, the loan term is 5 to 7 years.

    • Project model of the type "Contribution to the authorized capital" (Equity)

      04

      This is a project where NCE invests in a project through preferred shares, pari passu or any other form of equity in JCE. Such projects are inherently riskier but have the potential to bring higher returns to the investor if the business is successful.

      In such models, there is no fixed term for the return of funds to the investor, and the return on investors' capital depends on the sale or refinancing of the project.

    Structure of the standard project EB-5

    EB-5 Investors
    Contribution
    New Company Establishment (NCE)
    (attracts investments)
    Loan
    Management company
    (management)
    Regional center
    (Regional center)
    Developer
    Contribution
    Project Company (JCE)
    (creates jobs)
    Credit
    Bank or another creditor
    Structure of an Ideal EB-5 Project
    1st stage
    EB-5 Investor Loan
    2st stage
    Developer's contribution
    Total project budget
    35%
    65%
    LTC: 65% debt to equity ratio and priority of right to claim loan repayment
    Capital structure of a high-risk project
    2st stage
    EB-5 Investor Loan
    3st stage
    Developer's contribution
    1st stage
    Loan bank credit
    Total project budget
    65%
    20,00%
    15,00%
    LTC: 85% Debt to Equity and Second Priority Claim

    Senior Lender:

    The senior lender is the first to be repaid, has priority, and has the right to foreclose on the collateral if the loan defaults. This means that if the project fails, the senior lender can take ownership of the assets of the unfinished project and sell them to get their money back. This lender is most often a bank, but sometimes it is an EB-5 investor company, and these projects provide the highest level of security.

    Second-priority lender (Mezzanine Lender):

    This lender is in second position and therefore second in line of claim, but the senior lender's claim must be fully repaid first. Most investor loans in EB-5 projects are second in line, so it is important to understand the senior lender's claim. The repayment order of your money determines the risk and return on your investment. Other key factors to consider include the current value of the asset at the time of construction, when construction will be completed, and the likelihood of completion on time.

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