EB-5 Visa: Return on Investment - Dynaxe Capital (2024)

FAQs

Is an investment of $500,000 sufficient for an EB-5 immigrant visa? ›

The standard capital investment requirement for an EB-5 investor is $1 million. in a Targeted Employment Area (TEA) which is either in a high unemployment area, (calculated as an area with an unemployment rate that is at least 150% of the national average), or a Rural Area (RA) is $500,000.

In order to qualify for the EB-5 program, investors must make a qualifying investment of at least $900,000 in an approved commercial enterprise. Investors may also qualify by investing $1.8 million if their investment is located in a TEA.

The reason why the standard of investment is so low, which is just the preservation of capital, is that the true return on investment for EB-5 investors is typically between 0.25% to 1%, or a maximum of 1.5%.

The EB5 program is governed by complex immigration laws that require careful navigation. Investors must invest a significant amount—typically $800,000 to $1,000,000—in a new commercial enterprise. Furthermore, the investment must lead to the creation of at least ten full-time jobs for U.S. workers.

Eligibility for a Green Card Through Investment

The $1 million minimum may be reduced to $500,000 if the business is located in a rural area or an urban area with an unemployment rate certified by the state government to be at least 150% of the national average.

Although an $800,000 investment might be sufficient for category EB-5, there are additional requirements to fulfill. One of the requirements for getting a U.S. green card based on investment (category EB-5) is that the would-be immigrant pumps a minimum dollar amount into a U.S. business.

EB-5 Investment Repayment

While loan terms can vary from project to project, EB-5 investors can usually hope to receive repayment back within a five-to-seven-year period. The investment must remain “at risk” throughout the loan period, and therefore cannot be guaranteed to be returned.

If an EB-5 project fails to meet the job creation requirements, it will likely result in exponential losses in capital and a green card denial. The next question is whether investors can have the invested amount reimbursed. The likelihood of reimbursem*nt depends on the investment option.

One of the ways in which you can fund your EB-5 investment is through a loan. This loan can come from a family member or friend, a banking institution, in the form of an unsecured loan, or any other legitimate source.

“Investing in a diversified mix of stocks across different sectors and geographies can offer the potential for returns at or above 5%,” said Kovar. “Consider index funds or ETFs that track a broad market index like the S&P 500.

How can I get 10% ROI? ›

The U.S. stock market is considered to offer the highest investment returns over time. Higher returns, however, come with higher risk. Stock prices typically are more volatile than bond prices.

The new guidance published on the USCIS website states that this two-year period begins when investor funds are deployed to the job-creating entity (“JCE”). As long as 10 jobs have been created by an EB-5 investor's investment, he or she can be repaid after two years and remain eligible for a U.S. Green Card.

On the other hand, an EB-5 candidate cannot simply buy real estate in the United States to qualify for the program. USCIS requires that the investment capital be placed at risk, such as through the creation of an enterprise, and funds must result in the creation of ten fulltime jobs per investor.

The EB-5 program, also known as the Million Dollar Green Card, allows investors to obtain a green card if they invest either $500,000 or $1,000,000 in business or projects that will create 10 full time jobs. To learn more about the EB-5 program, please click here.

As an EB5 investor you are required to invest a minimum of $1,050,000 in the new commercial enterprise. This amount is reduced to $800,000 if you choose to invest in a targeted employment area. Targeted employment areas are areas with an unemployment rate of at least 150% of the national average or rural areas.

Under the EB‑5 Visa program, Indian investors and their family members can get a US residence permit by investment in the US economy. EB‑5 Indian investors make an investment of $800,000 or $1,050,000 in the American economy and create at least 10 full-time jobs.

One of the ways in which you can fund your EB-5 investment is through a loan. This loan can come from a family member or friend, a banking institution, in the form of an unsecured loan, or any other legitimate source.