EB-5 Overview

Overseen by the U.S. Citizenship & Immigration Services (USCIS), the U.S. Immigrant Investor Program (EB-5) provides foreign nationals the opportunity to become legal permanent residents (green card holders) upon making an investment of $1.05 million, or $800,000 in a designated Targeted Employment Area, in a new commercial enterprise. Each unit of investment must create at least ten new, direct or indirect jobs for U.S. workers.

For official information regarding the EB-5 Program, please visit EB-5 Immigrant Investor web page.( https://www.uscis.gov/working-united-states/permanent-workers/employment-based-immigration-fifth-preference-eb-5/about-eb-5-visa )

The EB-5 Program was introduced in 1990 but only attracted a relatively small number of immigrant investors. In 1993, the U.S. government modified it to include a Pilot Program also known as the Regional Center Program, under which the federal government could designate "Regional Centers" so that multiple immigrant investors could pool their funds into larger job-creating businesses in certain target regions and industries. The primary goals are to promote domestic economic growth, improve regional productivity, and create jobs. Through the EB-5 program, local Regional Centers are approved and authorized to raise capital from immigrant investors.

The EB-5 Pilot Program has been reauthorized several times, most recently by the EB-5 Reform and Integrity Act of 2022 (“2022 Act”), which was signed into law on March 15, 2022. Taking effect on May 16, 2022, the new EB-5 Act made several major changes to the EB-5 program including:

• Minimum investment amount increased from $1 million to $1.05 million, and the reduced amount for investments in targeted employment areas (TEAs) from $500,000 to $800,000. Beginning January 1, 2027, and every five years thereafter, the minimum investment amount for standard EB-5 projects will be subject to increases keyed to the Consumer Price Index. For TEAs and infrastructure projects, the minimum investment amount will be increased to 60% of the standard investment minimum.
• Allowing concurrent filing: Investors for whom an EB-5 immigrant visa is immediately available is permitted to file their EB-5 petitions at the same time as their applications for adjustment of status to permanent residence, or file an adjustment with a pending EB-5 petition. This will enable them to obtain employment authorization and travel permission while their cases are pending.
• Visa Reserved: The new law sets aside 32% of the annual 10,000 EB-5 immigrant visa for specific types of EB-5 projects: 20% for rural area, 10% for high unemployment area as designated by USCIS; 2% for qualifying infrastructure projects administered by a federal, state or local government entity; unused reserves carry over to add to reserves for the next year, but in the third unused year go without reservations.
• Shortening of "Sustainment Period." For investors who filed I-526E after March 15, 2022, the 2022 Act requires only that from the beginning the investor's capital "is expected to remain invested for not less than two years" as long as the requirement number of jobs are created. This means that post-enactment investors could receive return of capital investment once it has been invested for two years and upon proof of creation of required jobs, even if the investor has not yet become a conditional resident or even has not yet received I-526E adjudication.
• Federal authority to designate Targeted Employment Areas. The Department of Homeland Security will be invested with the sole authority to designate TEAs; state and local government authorities will no longer have the ability to make these designations.
• Reauthorized the Pilot Program until September 30, 2027, with grandfathering protection to all pending applications filed on or before September 30, 2026.
• Additional fees for EB-5 petitioners. Foreign investors will be required to pay a new $1,000 fee that will be allocated to the Integrity Fund.

The EB-5 visa has proven to offer a very good immigration solution for those who have the financial resources to qualify. It does not require an employment offer from a U.S. employer as other employment-based immigration categories do, nor does it require a labor certificate. To qualify for EB-5 visa, the foreign entrepreneur must invest the statutory minimum capital amount of $1,050,000 or reduced amount of $800,000 for TEA projects . Other EB-5 requirements include:

• The investment of $800,000 must be spent in a targeted employment or rural area;
• The investment must be in a new commercial enterprise; and
• The enterprise must create or preserve at least 10 full time jobs for qualifying U.S. workers

Types of EB-5 Investment

There are two types of EB-5 investment opportunities:

1. Direct Individual Investment: A $800,000 (if the investment is made in a TEA area) or $1,050,000 investment into a business that is managed directly by the immigrant investor that requires constant detailed hands-on accountability and daily business management as well as direct job creation performance and proof
2. Regional Center Based Investment: A $800,000 (if the investment is made in a TEA area) or $1,050,000 investment into a federally approved Regional Center which provides complete turnkey management of all business investments, daily management and full accountability for meeting the required job creations.

Benefits of Regional Center Investment

The Regional Center EB-5 program has become the fastest growing program and the most popular choice for immigrant investors in recent years. Today, 95% of all EB-5 capital is raised and invested by Regional Centers and most Regional Centers are located in TEA.

Regional Centers identify investment opportunities that will create jobs in local communities, often in partnership with government economic development agencies and professional developer and operators. Regional Centers ensure that the investment offering complies with federal and state securities laws and SEC regulations as well as specific EB-5 immigration law requirements.

Besides more convenient management and less risky investments, the Regional Center Program offers multiple advantages to immigrant investors, including:

Minimum Investment is reduced to $800,000

(instead of $1,050,000) because all ECRC investment projects will be located Targeted Employment Areas

Benefit of “indirect employment creation”

that aids the EB-5 investor in meeting the job-creation requirement.

No Active Management Required:

Other than proof of legal source of invested fund, Investors are not required to actively manage their investment on a daily basis, which gives them the freedom to explore other interests

No Restrictions On Age, Business Training, Management Skills, Experience and Language Aptitude:

different from the direct individual EB-5 investment, investing in ECRC Regional Center project, does not have any requirement regarding investor’s age, education, business and management experience and language

Investment Capital Can Be Secured by Any Lawful Source,

including gifts, inheritance and bank loan secured by investor’s personal assets.

Opportunity:

Investors may bring their spouse and all unmarried children under the age of 21. As a participant in the EB-5 program, investors may also enjoy the benefits of favorable admissions and reduced tuition costs at colleges and universities.

Flexibility:

Permanent residents need not physically be present in the United States on a continuous basis; they can maintain business and professional relations in their country of origin. EB-5 investors may return to their homeland for personal or business purposes, as long as a residence is maintained in the United States.

No Quota Backlogs:

there is a multi-year backlog for many employment and family-based green card categories, but there is no quota backlog for the EB-5 investor category (with exception of nationals from Mainland China, for which the waiting is still much shorter in comparison with the other employment based category).

Path to U.S. Citizenship:

Should an investor wish to become a U.S. citizen, the time spent as a conditional permanent resident is credited towards the five-year lawful permanent residency requirement for U.S. citizenship. After a period of five years, investors have the opportunity to apply for U.S. citizenship.

Ultimate Redemption of Investment:

You have the option of redeeming your investment upon removal of conditions at the maturity of the loan.

How to Apply

To apply EB-5 visa through ECRC projects, simply follow these 6-steps:

Step 1. Contact ECRC to Determine Suitability

• Review ECRC Investment Fact Sheet.
• Understand all the Risks Factors.
• Understand the criteria about Accredited Investors.
• Contact ECRC to obtain a copy of the Accredited Investor Questionnaire.
• Obtain notice from ECRC about suitability.

Step 2. Review Offering Documents

• Hire immigration attorney or designated representative to review offering documents and perform due diligence before selecting a project.
• If investment project is suitable, sign Subscription Agreement, remit subscription proceeds amount and wire to designated escrow account.
• Receive remittance confirmation letter from Escrow Bank.

Step 3. Submit I-526E Petition

• Prepare necessary Source of Funds documents.
• Retain an immigration attorney to prepare and file the I-526E Petition with the USCIS.
• Receive notice from the USCIS about the adjudication decision (approximately 12~15 months).
• Upon approval, investor will receive a Welcome Package from ECRC. In the case of a denial, principal and the administration fee might be promptly refunded by ECRC.

Step 4. Prepare for Concurrent Filing of Adjustment of Status or Consulate Interview

• If investor resides in the U.S. with a valid visa, investor's immigration attorney will help to file adjustment of status application that can be filed concurrently with the I-526E EB-5 immigrant petition or thereafter when I-526E is pending, provided that the priority date is current and the visa is available. This will enable investor to obtain employment authorization and travel permission while their cases are pending.
• If investor resides outside of the U.S., upon approval of I-526E, immigration attorney will help to file DS-260 immigrant visa application and investor’s Consulate Interview will be scheduled.
• Upon approval Investor will receive 2-year valid conditional green card.

Step 5. Submit I-829 Petition

• Three months before the conditional green card expires, immigration attorney will submit the I-829 Petition to remove the condition.
• Once I-829 petition is approved, investor may receive a permanent green card.

Step 6. Redemption of Investment Principal

All ECRC investment project will use secured loan structure. Principal might be repaid to each investor after the loan matures.