There are numerous EB-5 Program benefits, but two, in particular, are worth discussing in further detail.
What is EB-5? EB-5 is a program that allows qualified foreign nationals to invest $900,000 in a US targeted employment area investment (or $1.8 million in a non-targeted employment area investment) in exchange for US lawful permanent residency.
Why invest in EB-5? These two EB-5 Program benefits discussed below are huge selling points for foreign investors. They play a major role in why many foreign nationals chose to invest in the EB-5 Program over other countries’ visa programs.
Here are the two benefits:
1. Permanent Residency for Underage Dependents
Under the principal EB-5 investor’s application, their spouse and any unmarried children under the age of 21 years will be able to gain unconditional lawful residency. Some other visa categories also allow underage children entry into the US with their parents, but upon turning 18 years of age they would have to apply independently for permanent residence.
Many foreign nationals want to send their children to study in the US. Unlike student visas, the EB-5 visa would allow their children to study in the US, work without restriction in the US, live anywhere in the US, and travel more easily between countries. Additionally, families may become eligible for reduced in-state tuition.
2. Potential Passive Income
The EB-5 Program requires investors to make an at-risk investment in a US new commercial enterprise. While at-risk means that the investment has the potential to increase or decrease in value. Investors choosing Regional Center real estate projects could see increases in property value over time. Other visa categories allow foreign workers to work and earn income in the US or other countries, but the EB-5 Program is unique in that it allows immigrants to make income off what are essentially passive investments.
EB-5 investors can take on a more passive policymaker role to fulfill Regional Center Program management requirements. EB-5 investors also do not need to live near their Regional Center investments to fulfill the program requirements. Their investment can be located in one state and they and their family can reside in a different state.
On November 21, 2019, new EB-5 regulations went into effect that raised the minimum investment amount for targeted employment area projects from $500,000 to $900,000. The new rate may mean that initially, the pool of interested investors in the program may shrink as the program adjusts. The good news for interested investors is that this may increase interest rates in order to attract more investors. In years past EB-5 investors were lucky to see a small return, but now they may start seeing a more competitive return on their investment.
- New York
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