There are many entrepreneurs, both foreign and domestic, who would like to know what an EB-5 Regional Center is. The short answer is that EB -5 stands for Employment Based 5th category.
A slightly more in-depth explanation is that, under United States immigration law, there are five different employment-based categories that offer ways to immigrate to the United States. EB-5 is based on the creation of jobs by someone desiring to immigrate into our country, and it is the fifth category. It is also known as the Investor or Investment Green Card. EB-5 Regional Centers provide a way for foreign nationals who invest money in the United States to obtain a green card. If a foreign investor would like to come to the United States and start a business that creates jobs for U.S. citizens, this is the program that the government has created to facilitate that process.
There are some minimum requirements, though. Generally, the minimum qualifying capital investment in the United States is $1 million. If the EB-5 RC is investing in a project located in a “targeted employment area,” the minimum investment is $500,000. The investment capital must not be borrowed.
In reality, the EB-5 visa is usually the main objective for the foreign investor. The process established by the federal government to determine a foreign nationals’ eligibility for the EB-5 visa program is a two-step process and includes procedures that are common to applicants of all visa categories. Numerous background checks and national security screenings are also required. If the EB-5 applicant is found to be admissible into the United States, a conditional visa will be granted allowing the applicant to live in the U. S. for two years. Before this two-year period is over, the EB-5 visa holder must submit another petition proving that the investments made through the EB-5 program have created a minimum of ten full-time jobs.
The purpose of the program is to promote the immigration of those who can help create jobs for U.S. workers through their investment of capital into the U.S. economy. Today, there are over 1,100 EB-5 Regional Centers flourishing around the country.
Learn more about EB-5 Regional Centers, their uses and how to achieve and maintain the designation in our upcoming Wise Learning Series guide.