EB-5 Visa Project Options: Explore Your Investment Opportunities
EB5 visa projects are exciting because they offer a path to permanent U.S. residency. You can invest $800,000 to $1,050,000 in an EB5 project and receive a Green Card, but your investment must create ten full-time jobs and meet other requirements.
Exploring your investment opportunities requires you to know what projects qualify for the visa.
Types of EB-5 Projects
EB5 Visa classification requires that investors do a few things:
- Invest in a new commercial enterprise that was founded after November 29, 1990, OR
- Projects on or before this date that are being restructured, reorganized or expanded through investments
You have multiple project types that you can pursue, and the one you select will determine how much of an investment you’ll need to make.
Rural vs. Urban Projects
Urban and rural projects seeking investment may suffice for anyone petitioning for the EB5 visa. You want to focus on project quality above all else, but there are a few things to know about each type of project:
Rural Projects
Many investors assume that rural projects pose more risks, which is true to some extent. You need to do your due diligence, but many rural areas are in dire need of investment to help spur the local economy and job market.
With this in mind, you’ll also benefit from:
- $800,000 investment requirements instead of $1,050,000
- Priority processing so you can have your application streamlined
Rural projects must be in areas with fewer than 20k people.
Urban Projects
Urban projects are often in major metropolitan areas, which, from an investment perspective, offers a greater chance of project success. These projects will require a $1,050,000 investment.
TEA (Targeted Employment Area) Projects
A TEA project can be in a rural area or one where unemployment is high. TEA areas must have an unemployment rate that is 150% of the national average unemployment rate.
Non-TEA Projects
EB5 visa projects can also be non-TEA, which means that the investment can be in a thriving area of the country. You may be investing in an area where employment is already high, but your project can spur job growth and the local economy.
Popular EB-5 Investment Sectors
Some sectors are far more popular than others for EB5 investors. The following are the most popular sectors:
- Real estate, such as commercial buildings or residential developments
- Technology startups
- Healthcare or the biotech industry
- Infrastructure projects
- Renewable energies
- Hospitality and tourism
Many investors are opting to invest in residential projects or hotels or resorts because they have a high chance of being a success and are in high demand.
Regional Center Projects vs. Direct Investment Projects
The EB-5 visa program offers two investment pathways:
- Direct: You invest directly in a project and maintain independent control of its operations. This pathway is more hands-on.
- Regional Center: You pool and invest with other individuals, and the management of the project is handled by other professionals. This route is more hands-off.
Key Considerations When Choosing an EB-5 Project
When choosing an EB-5 project to invest in, there are several things to consider, including:
- Is the project likely to create the required number of jobs?
- Is the project likely to succeed? Finding a well-planned project is key, and agencies can help. For example, Shoora EB5 connects investors with sought-after EB5 investment projects that have a higher certainty rate of securing jobs.
- Where will the project operate?
Steps to Invest in an EB-5 Project
To start investing in EB-5 investment projects, you will need to follow the steps below:
- Determine whether you will invest directly or through a Regional Center.
- Conduct Due Diligence to evaluate risks, including an assessment of job creation viability, financial projects and management team expertise.
- Prove your Lawful Source of investment funds.
Potential Risks and How to Mitigate Them
No investment is without risk. Whether you choose to invest directly or in a Regional Center project, it’s important to remember that there is a risk:
- The project won’t create the required number of jobs
- The project could fail
Mitigating risks starts with understanding all of the details of the project and how it will be funded. For example, a project that is fully dependent on receiving a certain amount of EB-5 investment capital may be riskier than a project that is fully capitalized because a certain number of EB-5 investors must be on board before the project can get off the ground.
Benefits of Investing in EB-5 Projects
Investing in EB-5 projects comes with many benefits.
- You are helping the economy by creating new jobs.
- The EB-5 program offers permanent residency and a direct path to U.S. citizenship.
- No sponsorship is required.
- An EB-5 visa will give you access to education opportunities.
- EB-5 investors also have travel flexibility within the U.S..
Successful EB-5 projects will also provide a great ROI.
In Conclusion
There are several types of EB-5 investment projects, each with its own benefits and considerations. It’s important to weigh your options carefully and consult with a professional before making your final decision.