While not a startup visa, the EB-5 investor green card offers many entrepreneurs a path to a green card by investing money and creating jobs in the U.S. Under the EB-5 program, an entrepreneur’s family is also eligible for green cards.
Imminent regulatory changes to the EB-5 program are expected to make obtaining an EB-5 green card a whole lot more expensive. The minimum investment is anticipated to more than double to $1.35 million from the current $500,000. And with individuals from India expected to face a backlog for EB-5 green cards shortly, the opportunity to obtain an EB-5 green card at a relatively low cost and in a timely manner is closing.
What is the EB-5 green card?
The EB-5 investor green card program consists of two main investment options: One requires investors to actively manage the company in which they put their money. The other, called the Regional Center program, allows investors to assume a passive role by putting their money in a business—often a real-estate project—approved by U.S. Citizenship and Immigration Services (USCIS). The program aims to attract foreign investment and create jobs in the U.S.
Currently, investors and their families are eligible for an EB-5 green card by putting up at least $500,000 in a Regional Center or business located in a rural or high unemployment area. Investors are required to put up at least $1 million into their own business or commercial project or in a regional center located outside of rural or high unemployment area.
In addition to the investment, each regional center and business must create at least 10 full-time jobs for an EB-5 green card. In a regional center, the jobs can be created indirectly in the local economy.
Under the expected regulatory change, the $1 million investment is expected to rise to $1.8 million. The job creation number is expected to remain the same.
Another expected change would protect investors from losing their place in the green-card line if a regional center is terminated or otherwise falls through. That’s great news since some regional centers have been embroiled in fraud and securities violations, forcing investors to start the EB-5 green card process all over or find an alternative. It is crucial that investors find a vetted, trusted regional center to keep the green card process on track.
Wait times growing
Investors from China are facing long waits for an EB-5 green card due to the per-country limits placed on them under U.S. immigration law. Investors from India are beginning to face long waits for EB-5 green cards as well.
U.S. immigration law caps the number of employment-based green cards issued each year at 140,000. The law also limits the number of green cards issued to the citizens of each country at 7 percent. Known as the “per-country cap” or “per-country ceiling,” it was designed to maximize the diversity of immigrants that permanently live and work in the U.S. Last week, the House passed legislation that would eliminate the per-country cap for employment-based green cards.
Individuals from all over the world, especially those from India, who have been considering the EB-5 green card at the $500k level are advised to consider their options now prior to any regulatory changes.