Citizenship Invest looks into what’s driving the growing popularity of the EB-5 Program and the updates amplifying its benefits for global investors and local communities.
The United States has long been heralded as the land of opportunity, a sentiment that holds especially true for investors seeking stability and growth. As the Business Standard noted, America is already home to 37% of the world’s millionaires, with around 5.5 million high-net-worth individuals. Furthermore, the country is expected to see an inflow of 3,800 more millionaires in 2024.
The growing relocation numbers can be attributed to the US EB-5 Immigrant Investor Program, which gives immigrants a faster route to acquiring residency in the US if they invest in a business in the United States.
A little more about the EB-5 program
The EB-5 Program, established by Congress in 1990, was designed to stimulate the U.S. economy through job creation and capital investment by foreign investors. By making a qualifying investment in a commercial enterprise that creates or preserves at least ten full-time jobs for qualifying U.S. workers, investors and their immediate families including their spouses and children below 21 years become eligible for permanent residency or what is commonly known as Green Card in the United States.
The required investment amount is $1.05 million, or $800,000, if the investment is made in a Targeted Employment Area (TEA)—a rural or high-unemployment area. The program has seen numerous success stories, with investors who have secured their future and significantly contributed to local economies through business ventures that drive job creation.
Access to a global powerhouse
Understandably, the program’s popularity can be attributed to the United States’ reputation for innovation and dynamism. The country has ranked consistently high in global competitiveness indices, offering a market filled with opportunities across various sectors. The global innovation of companies such as Google and Facebook contributing to a world-leading technology sector, the lucrative opportunities in commercial and residential properties, evidenced by solid demand in cities like New York, and the burgeoning healthcare sector, supported by advanced research and development are only a few of examples of how the diverse economic landscape and consumer market provide a fertile ground for business ventures and investments. In addition, investors in the EB-5 Program can benefit from the country’s cutting-edge infrastructure, including advanced transportation networks, telecommunications, and energy systems. The skilled workforce, bolstered by world-class educational institutions like Harvard, MIT, and Stanford, also ensures a steady supply of talent to drive business growth.
Most importantly, the U.S. also offers a robust and transparent regulatory environment. The EB-5 Program is governed by stringent regulations overseen by the U.S. Citizenship and Immigration Services (USCIS), ensuring the legitimacy and security of investments. To invest in an EB-5 project, the individual must first secure a Regional Center through which they can invest. Investment through a Regional Center involves committing capital to a USCIS-approved entity that pools funds from several investors to finance large-scale projects. Regional Centers typically focus on industries such as real estate development, infrastructure projects, and hospitality – although this has also been diversified in recent years.
Investor advantages
One key advantage of the EB-5 program is that it offers not only the investor but also their whole family the opportunity to secure a green card and become a resident of the U.S. This green card gives them the legal right to live, work, and study anywhere in the country and access to a whole host of benefits that come with being a citizen of the U.S., including access to healthcare, education, and retirement programs.
Another critical advantage for HNWIs is that EB-5 investors are not required to manage the day-to-day running of their project investment actively. Once in the U.S., they can pursue other employment avenues or business interests as they see fit. This means they can also live abroad or their home countries while maintaining a U.S. residency for their families.
What’s making further driving its popularity?
Close to 123,000 qualified investors and their family members have obtained legal permanent residence in the USA via the program since 2000 according to Invest in the USA’s EB-5 Data Dashboard. In 2024, nearly 6,000 EB-5 visas have been issued. The uptake is due to the benefits above, which draw investors, and recent changes and improvements to the program have strengthened its popularity.
For example, in 2023, there was a notable uptick in the EB-5 visa application processing speed, with reports showing a surge in approvals, indicating quicker processing of new and existing applications, with some approvals happening in under three months.
The Financial Express also reported on the updates initiated by the USCIS for the EB-5 program, notably the introduction of concurrent filing. This enables investors, especially those on F-1 or H-1B visas, to simultaneously pursue their Green Card alongside their EB-5 applications, offering interim benefits like work authorization and travel documents.
An evolving program
The EB-5 Reform and Integrity Act of 2022 significantly strengthened the program’s integrity and transparency, enhancing investor protections with stricter background checks and improved oversight. Investments in Targeted Employment Areas are now fast-tracked, expediting the process. The two-year minimum investment mandate clarifies investor commitments and creates reserved visas under the 2022 Act, accelerating the process for new investors.
The launch of online visa application system is a game-changer, poised to further accelerate visa processing significantly. This digital move streamlines the process, reducing processing times, enhancing accuracy, and providing real-time application status updates.
A path for a new chapter
Investing in the United States through the EB-5 Program undoubtedly opens doors to various growth opportunities. The program’s requirement for job creation ensures that investments directly contribute to the local economy, fostering community development and economic expansion. This has a multiplier effect, as the creation of new jobs spurs additional economic activities and development. Moreover, investors gain the advantage of living and working anywhere in the U.S., allowing them to capitalise on regional economic booms and emerging markets. States like Texas, Florida, and Nevada are experiencing rapid growth, driven by favorable business climates and population influx. This geographic flexibility enables investors to diversify their portfolios and maximize returns.
The EB-5 Immigrant Investor Program continues to attract high-net-worth individuals worldwide, drawn by the promise of a green card and the potential for substantial economic gains. If you want to see if this is the path for you and your family, contact one of our experts today.
