An Overview of EB5 Direct Investment

 

Direct Investment is one of two ways to pursue a Green Card through the EB-5 program.

 

When we use the term “Direct Investment,” we are referring to an EB5 investment in a unique business established and operated by the investor, rather than an investment in a USCIS approved Regional Center in which the investor has no control of their investment. 

 

If you’re an investor who requires business operational control, the Direct Investment option, we feel, is the best option for you. You can invest in any type of business. Often, people select the Direct Investment option  because they wish to invest in a particular industry with which they are familiar, and because they want to have business operational control.  

 

A Direct Investment EB5 will allow you to manage the business as you wish and you are required to take an active role in managing the business in which you place your investment.

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A Direct Investment EB5 requires a $1,000,000.  investment in a new or restructured business. 

 

There are two main phases to the application process, which occur roughly two years apart: 

1. In the first phase, you must prove to USCIS that you have established a business entity and made a qualifying investment. of $1 million.

2. You must also invest in a business that was created after 1990, unless you significantly expand it or change what it does.

 

 

A critical part of this first application is preparing a good business plan, with the help of an attorney and business plan professional. Your business plan will give extensive details as to the nature of your business, as well as information about the business’ personnel needs, which provide evidence that the business will meet USCIS’s requirement for job creation.

 

If your first application is successful, you will be issued a temporary Conditional Green Card, as will the members of your immediate family who you listed on the application.

 

In the second phase, which begins about two years after you have received your Conditional Green Card, you must prove to USCIS that your investment has employed 10 persons.

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In most cases for the EB5, your investment must have led to the creation of 10 full-time jobs for new employees. However, if you invest in a business that is struggling, this can include the jobs for current employees that your investment helped save.

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If you are successful in this second application, you and your family will receive what we refer to as Permanent Resident Green Cards. These are fully renewable every 10 years and are no longer dependent on the success of your EB5 business.

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If You Are Living Outside the United States

You can become a permanent resident through consular processing if you live outside the United States. Consular processing is when USCIS works with the Department of State to issue a visa on an approved Form I-526, Immigrant Petition by Alien Entrepreneur, petition when a visa is available. 

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If You Are Living in the United States

You can become a conditional permanent resident through adjustment of status if you live inside the United States. Once the Form I-526 is approved and a visa number is available, you can apply for conditional permanent residence on Form I-485, Application to Register Permanent Residence or Adjust Status. 

 

There is also an option to invest $500,000 instead of $1,000,000.  but that would be in a TEA only area (targeted unemployment area).  In this case the business needs to be located in a rural area or one with high unemployment.  

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