Should You Invest in an EB-5 Visa Investment Project or Start Your Own USA Business to Get Your EB-5 Visa?

In order to help meet the demand for green card applications from foreign immigrants, the United States Citizenship and Immigration Services has implemented a process known as the EB-5 Immigrant Investor Visa program.

However, to qualify for the EB-5 Visa, participants are required to make an investment in the United States that creates and maintains at least 10 jobs. This investment can either be used to start a business in the targeted area or invest in an ongoing EB-5 visa project.

With that being said, let’s take a look at which investment method is best suited for you!

What is an EB-5 Visa?

An EB-5 Visa is an employment-based visa program created by the US Congress in 1990 with the purpose of encouraging foreign investments and job creation in the United States.

To acquire an EB-5 Visa applicants are required to invest a minimum of $900,000 in a targeted employment area (TEA) or $1,800,000 in a non-targeted employment area. The investment is expected to create and maintain at least 10 jobs within a span of 2 years.

If applicants are able to meet the requirements of the EB-5 Visa they not only secure Visas for themselves but for their spouses and unmarried kids under the age of 21.

Should You Invest in an EB-5 Visa Investment Project?

EB-5 Visa investment projects are often set up by regional centers and involve multiple foreign investors creating a pool of funds in order for them to take on larger projects.

The jobs created from an EB-5 visa investment project can either be direct jobs, indirect jobs, or jobs created in order to cater to the needs of the employees.

An advantage of investing in an EB-5 Visa investment project is that you don’t need to involve yourself in the day-to-day running of the business. However, the drawback to this is the administrative fees attached.

Finding a Suitable EB-5 Investment Project

The first thing to note when searching for an EB-5 Visa investment project is the viability of the business you are investing in and the projected profits you can make. You should do your research to find out if the business is actually a profitable one.

Secondly, it’s also advisable to search out EB-5 investment projects with low financial risk. This is very important because you might be investing a huge chunk of your savings and do not want to lose it on a risky business venture.

When searching for a suitable EB-5 investment project you should also take a closer look at who would be running the project. You can compare and contrast how they have managed precious businesses to decide if it’s the right investment project for you.

Should You Start Your Own USA Business?

Applying for an EB-5 Visa gives you the option to make a direct investment by setting up a business in the United States. This business could be a franchise, IT company, restaurant chain, real estate, and other ‘for-profit’ enterprises.

When you start your own business you are directly involved in the day to day of that business. You have to get to know the ins and out and you are responsible for all gains and losses.

However, an advantage to this is that it offers you higher earning potential than you would have gotten if you invested through a regional center.

Bottom line

Deciding on which route to take as a foreign investor is unique to each individual, for example if you already own and manage a business you might not have time to be directly involved in the creation and the day-to-day of another and might opt for an EB-5 investment project instead.

Nevertheless, before deciding on which investment path to take it is important that you consult your financial advisor and your immigration lawyer.