EB-5 Direct Projects: Invest in a Project with an EB-5 Visa

An EB-5 direct project is the product of the direct investment of foreign nationals who are applying for the EB-5 Visa Program. An EB5 direct investment generates direct jobs and leads to a new enterprise, the purchasing of a new enterprise, or an investment in an existing business. The EB-5 Visa Program requires a minimum investment that creates at least 10 full-time jobs for Americans as a result of the EB 5 direct project.

Making an EB 5 direct investment project is a faster and more reliable path to permanent residence for foreign EB5 investors. Direct project investors have more potential to enjoy significant returns and have more control over their EB5 investment. An investment in an EB-5 direct project requires the foreign investor to manage and actively engage in the operations of the enterprise. The minimum 10 jobs created must be sustained for at least 2 years in EB5 direct project investment.

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What is an EB5 Direct Project?

An EB5 direct project is an investment in a U.S. business made to qualify for the EB-5 Immigrant Investor Visa Program. An EB5 direct investment is any investment that leads to a new business, the buying of a new business, or an investment in an existing business that does not involve a regional center. A regional center is a public or private unit authorized by the U.S. Citizenship and Immigration Services (USCIS) to boost economic development.

The EB-5 Visa Program requires both direct investments and regional center investments to generate at least 10 full-time jobs for Americans for each EB5 investor. The minimum investment for an EB-5 direct project in a targeted employment area (TEA) is $800,000. The EB 5 direct investment capital for a non-targeted employment area (TEA) is $1,050,000. A TEA is a region with high unemployment or rural areas.

How Does an EB5 Direct Project Work?

An EB5 direct project has specific requirements in terms of employment creation and business operation. Direct EB-5 projects have to generate direct jobs that appear on the company’s payroll. The foreign investor must be directly involved in the management and operations of the EB5 project. Direct management of the EB 5 project requires the foreign investor to reside in the same location as the company to operate it personally.

Most EB 5 direct investments involve equity ownership compared to regional centers with loan/debt investments. Direct EB 5 investment projects can be in the form of a limited partnership, general partnership, corporation, or limited liability corporation (LLC).

What are the Advantages of a Direct Project?

EB-5 investments in a direct project have increased because of the complications and processing delays involved with regional centers. The structure of an EB-5 direct project necessitates investors to be actively engaged in managerial or policy-creating positions. Active engagement in the direct project gives more control to the investor over the business. Direct EB5 projects are able to start their development, marketing, and external funding without the need for preapprovals, economic reports, and lengthy applications associated with regional centers.

A direct EB 5 project has more potential to reap significant returns compared to regional centers with earning caps. You can save on administrative costs with a direct EB5 investment project that typically ranges from $50,000 to $70,000 with regional centers.

What are the Disadvantages of a Direct Project?

One of the limits of a direct project is that only jobs directly created from the business are counted for the job creation requirement of the EB-5 Visa Program. Regional centers are able to include indirect and induced jobs which enable easier fulfillment of the job creation criterion for EB5. Indirect and induced jobs are not created by the EB 5 project itself but result from the economic growth brought on by the EB 5 investment. The direct jobs must be sustained for at least 2 years until the foreign investor’s petition to become an unconditional lawful permanent resident.

Active involvement in the direct project can also pose a problem for inexperienced investors and entrepreneurs. Foreign investors can opt for a limited partnership with a more experienced business partner or hire a CEO or CFO if the direct project is a corporation.

How to Qualify for an EB5 Direct Project?

An EB-5 direct project can be in a TEA or a non-TEA. EB 5 investment projects in a TEA require a minimum of $800,000 capital. EB5 investment projects in a non-TEA require a capital of at least $1,050,000.

Here we have the list of requirements for a direct project to qualify for the EB5 Visa.

Form I-526, Immigrant Petition by Standalone Investor.
Statement of the position of the EB5 investor including the job title and the job description of duties and responsibilities.
Proof that the EB 5 investor is in a corporate position or part of the corporate board of directors OR
Proof of engagement in direct management or policy-making in a limited or general partnership.
A business plan that includes information on the EB-5 business, financial and market analysis, and direct employment creation that is sustained for at least 2 years.
Legal source of funds which include income, business profits, loan, inheritance, or gift.

How to Invest in a Direct EB5 Project?

Investing in an EB-5 Direct Project qualifies foreign investors and their dependents for a Green Card (Permanent Resident Card). A Green Card (Permanent Resident Card) is a document issued by the U.S. government indicating that a foreign citizen has the right to stay permanently in the US.

Here are the 6 steps in investing in an EB-5 Direct Project for U.S. permanent residence.

Choosing an EB5 Direct Project. Working with an investment advisor and an immigration attorney to find the right Direct EB5 Project that suits your investment and immigration needs.
Petitioning for an EB-5 Visa with Form I-526. Form I-526, Immigrant Petition by Alien Investor is submitted to the U.S. Citizenship and Immigration Services (USCIS) together with your business plan for the EB5 Direct Project.
Applying for an EB5 Green Card. Filing Form I-485, Application to Register Permanent Residence or Adjust Status grants the foreign investor and their dependents Green Cards.
Obtaining a Conditional Green Card. A Conditional Green Card is valid for 2 years for the foreign investor and their dependents.
Removing conditions on permanent residence. Form I-829, Petition by Investor to Remove Conditions on Permanent Residence is submitted within the 90-day period prior to the second anniversary as an EB 5 Visa holder in the US.
Gaining lawful permanent residence. A lawful permanent residence is valid for 10 years for the foreign investor and their dependents.

Learn more about the detailed EB5 Process to get a U.S. Green Card.

What is the Future of the EB5 Direct Project?

The EB-5 Direct Investment Program is a permanent ongoing program by the USCIS that allows for a quicker and more reliable route to US permanent residence for foreign investors. Regional centers need continual reauthorization by the U.S. Congress. The EB-5 Reform and Integrity Act (RIA) of 2022 authorized immigrant visas under the Regional Center Program until September 30, 2027. An EB 5 direct project in a TEA now requires only a minimum of $800,000 in investment capital per the Reform and Integrity Act (RIA). The RIA also allows EB-5 investors for direct projects in TEAs to be eligible for priority processing of their I-526 petitions and the 20% visa set-asides for direct TEA investors. Another benefit of the RIA for EB5 direct project investors is the concurrent filing of Form I-526 and Form I-485, Application to Register Permanent Residence or Adjust Status to obtain a Green Card.

List of EB5 Projects in US States

Most EB-5 direct projects are in franchise businesses, restaurants, information technology (IT), and retail store chains. Here we have the types of direct projects in US states with significant EB5 markets.

EB-5 projects in Alabama are in aerospace, education, healthcare, and banking. Other industries available for EB5 investment in Alabama are manufacturing, mineral extraction, and steel production and fabrication.
EB-5 projects in Texas include the Flying Biscuit. The Flying Biscuit is set to open 5 new franchise locations in Dallas from direct EB5 investments.
EB-5 projects in California include the agriculture, film, technology, and tourism industries. The state of California is the top state for EB investors.
EB-5 projects in Nevada are focused on tourism and entertainment. Other top industries in Nevada include mining, cattle ranching, machinery, printing and publishing, eclectic equipment, and food processing.
EB-5 projects in Florida include the Drunken Dragon. The Drunken Dragon is set to open in a new location in Miami from direct EB 5 investments.
EB-5 projects in New Jersey are in multi-family residential real estate and mixed-use developments. Other main industries in New Jersey are manufacturing, technology, pharmaceuticals, financial services, and transportation.
EB-5 projects in Illinois include hotel construction and hospitality industries. The immigrant community in Illinois makes up 14.2% of the state’s population according to the American Immigration Council.
EB-5 projects in Arizona are in hospitals, assisted living facilities, and hospitality. Other top industries in Arizona are manufacturing, technology, aerospace, and defense.
EB-5 projects in Colorado are in mixed-use developments and multi-family residential buildings. The state of Colorado is also known for its tourism, mining, manufacturing, and agriculture industries.
EB-5 projects in Idaho include agriculture, food processing, science and technology, machinery, lumber, electronics manufacturing, mining, and tourism. The American Immigration Council estimates that 6% of Idaho’s total population are immigrants. More than 5% of the immigrants in Idaho are business owners and contributed $104.2 million in total revenue.

What is the Best Project to Invest in with an EB-5 Visa?

Top EB-5 Visa projects include investments in real estate, hotel construction, and the restaurant industry. EB5 direct investments in these industries have consistent demand and the potential for return on investment. Restaurant EB-5 projects can open and expect a return on investment within the first year. Hotel construction and real estate EB5 projects generate numerous jobs that ensure the fulfillment of the job creation requirement of the EB5 Visa Program.