The EB-5 classification has several benefits like the rapid path to a US green card and citizenship, no sponsorship requirements, and flexibility to live and work anywhere in the United States.
However, none of these advantages can be obtained without the time and effort applied to becoming eligible for EB-5 status. In this article, you will find out what an eligible EB-5 business is.
What is an Eligible EB-5 Business? – Full Overview
The United States Citizenship and Immigration Services (USCIS) administers the EB-5 program. EB-5 eligibility depends on two foundational requirements, which are:
- The applicant must invest the required amount of capital in a US-based commercial enterprise, and
- The investment must create (or preserve) at least ten full-time job positions for qualifying US workers
USCIS defines the term “commercial enterprise” as “any for-profit activity formed for the ongoing conduct of lawful business, including:
- A sole proprietorship
- Partnership (whether limited or general)
- Holding company and its wholly owned subsidiaries (provided that each subsidiary is engaged in a for-profit activity formed for the ongoing conduct of a lawful business)
- Joint venture
- Business trust
- Limited liability company, or
- Other entity, which may be publicly or privately owned”
To qualify for EB-5 status, a foreign investor can start a new business from scratch, invest in an existing company, purchase an existing business in its entirety, or invest in a Regional Center.
What is the Minimum Amount Eligible for EB-5 Investment?
Since March 15, 2022, the minimum amount eligible for an EB-5 investment is $1,050,000. For foreign investors willing to invest the capital in a Targeted Employment Area (TEA), it is possible to qualify with a reduced investment of at least $800,000.
At the time of investment, the TEA can be either a rural area or an area that has experienced a high unemployment rate. As expected, the applicant must guarantee that the funds used in the investment have been lawfully obtained.
EB-5 Job Creation Requirements – In Detail
Signed into law by President Biden on March 15, 2022, the EB-5 Reform and Integrity Act introduced new requirements to the EB-5 visa category and the Regional Center Program.
A regional center is a business entity regulated by USCIS that functions as a pool for capital investment from multiple EB-5 investors. This capital pool serves as a funding source to develop a project to promote economic growth, boost regional productivity, and incentivize job creation.
The current regulation sets forth specific job requirements for commercial enterprises located within or out of a regional center.
If the applicant chooses to invest in a new commercial enterprise not located within a regional center, the investment must directly create the full-time positions required by USCIS and the enterprise must employ the qualifying workers by itself.
If the applicant prefers to invest in an EB-5 enterprise located within a regional center, the required full-time job positions can be created directly or indirectly. Indirect jobs are positions created as a result of the applicant’s investment but held outside of the EB-5 enterprise.
The American Dream is Not Over – Immediately Contact Attorney Romy B. Jurado
A well-versed legal advisor in US immigration and business law, Attorney Romy B. Jurado willingly wants to help you succeed. Contact us today by calling (305) 921-0976 or emailing [email protected] for an individual consultation.