The US EB-5 Investment Visa Programme – the ultimate route for international students
The United States has long been the first choice for parents of international students, who are drawn by the high quality of US higher education, its value on the international labour market and the access it offers to job opportunities in the US post-graduation.
US universities consider any students who do not hold either US citizenship or a ‘Green Card’ – officially known as a Permanent Resident Card – to be an international applicant, regardless of where they live or attend school.
International students who study in the US under standard international student visas are disadvantaged because they are subject to the following conditions:
- Lower university acceptancy rates.
- Higher fees than US residents.
- Minimal US-based internship and post-graduate employment opportunities.
- Limited ability to set up their own business in the US after graduation.
The Green Card allows holders to live, work and study permanently in the US. Importantly, Green Card holders are also considered to be domestic applicants for places at US universities, alongside US citizens.
This means that international students who first obtain permanent residency in the US before applying to a US college or university can enjoy the following benefits:
- A greater chance of admission to selective US colleges and graduate schools because they are not subject to official (or unofficial) international student quotas that restrict admissions.
- Reduced college tuition fees of up to 50% at public universities.
- Do not require employer sponsorship upon graduation, avoiding the need for an H-1B visa, which are now awarded via an annual lottery system and are routinely heavily over-subscribed, subject to delays and arbitrary rejections.
- Gain unfettered access to highly competitive and attractive US professional opportunities. Currently only 30% of US companies sponsor international students for a full-time position.
- Enjoy the ability to join start-ups or smaller companies that typically do not sponsor foreign students, and/or pursue entrepreneurial opportunities and start their own business.
- A residency back-up plan in times of political instability, social unrest or economic crisis in their homeland.
- A direct path to US citizenship after maintaining permanent residency in the US for five years.
Establishing Permanent Residency in the US – The EB-5 Immigrant Investor Programme
The EB-5 Immigrant Investor Programme enables high-net-worth foreign nationals and their qualifying family members to obtain a US ‘Green Card’, known officially as a ‘Permanent Resident Card’, which entitles its holder to permanently live, study and work in the US.
The EB-5 Immigrant Investor Programme is administered by the United States Citizenship and Immigration Service (USCIS). By investing a minimum of USD800,000 in an EB-5 qualifying project that creates jobs for US workers, eligible foreign nationals and their families will first receive conditional Green Cards. After an additional two years, conditional Green Cards holders are eligible for Permanent Residency.
Benefits of the EB-5 Programme
The EB-5 Visa Programme provides successful applicants with the freedom to live, study, work in the US, one of the most desirable lifestyle and business destinations worldwide. They also benefit from the following:
- Minimal application requirements, with no business experience or language proficiency tests.
- Applicants can include their spouse and any unmarried children under the age of 21.
- Access to reduced tuition fees for schools and universities.
- A cost-efficient route to gain permanent residence in the US.
- No sponsorship requirements for employers or schools.
- Flexible physical presence requirements.
- The EB-5 visa can lead to US citizenship. The principal investor and family members may be eligible for US citizenship five years after their initial entry into the US.
EB-5 Programme – Recent Amendments
The EB-5 programme regulations were revised in March 2022, introducing several new rules that benefit applicants, including visa set asides, faster processing, stringent compliance measures that enhance the safety of the investment, and concurrent adjustment of status, which hugely benefits students and working professionals already in the US.
Depending on the type of project selected and country of birth of the applicants, investors can typically receive their Green Cards within one to three years of application.
EB-5 applicants already residing in the US on other types of visas can now obtain work permits within three to five months and travel permits within eight to 11 months of applying for an EB-5 visa.
EB-5 Visa – Qualification Requirements
The EB-5 Immigrant Investor Programme requires a foreign individual to invest into a new commercial enterprise that is associated with government-approved regional centres to promote economic growth.
To qualify, applicants must show that they have met one of the following investment criteria:
- Invested USD800,000 into a targeted employment area project established within a rural area or an area with high unemployment.
OR - Invested USD1.05 million into a non-targeted employment area project.
Investors are also required to provide evidence that their investment funds have been legally sourced and that, after two years, their chosen investment project has created and maintained 10 permanent full-time jobs for qualified US workers. They must also hold their investment for the full investment timeframe of approximately five years plus.
EB-5 Programme – Initial and Overall Costs
In addition to their chosen minimum qualifying investment amount, applicants must also budget for an administration fee ranging from circa USD65,000 to USD80,000, legal fees of circa USD20,000 to USD25,000, and a USCIS filing fees of circa USD24,000.
Successful EB-5 qualifying projects will return investors funds after roughly five to six years, usually once the investor has completed their two-year conditional residency period in US. In such cases, the subsequent overall cost of the EB-5 programme will be the legal and administrative fees, less interest earned on the investment.
Depending on the project selected, on average EB-5 investors receive an annual return of 1%. Meaning under the USD800,000 qualifying investment option, the net total cost of the EB-5 programme will be circa USD70,000 to USD90,000.
EB-5 Visa Programme – Process and Approximate Timeline
Applicants must first determine whether they have the financial resources, appropriate risk tolerance, investment liquidity and time frame (five years plus) to meet and hold the minimum investment requirements.
The EB-5 is a multi-step process administered by the USCIS, which can be split into four distinct stages:
Renewal of a permanent Green Card
Permanent Green Card holders are required to renew their Green Card every 10 years.
US Citizenship by Naturalisation
Whilst the EB- 5 programme does not lead directly to US citizenship, permanent Green Card holders are eligible to apply for US citizenship by naturalisation.
An applicant for citizenship by naturalisation must have resided continuously in the US, after his or her lawful permanent resident (LPR) admission, for at least five years prior to filing the naturalisation application and up to the time of naturalisation.
Contact Sovereign to learn more
The Sovereign Group, together with our partner US Immigration, legal and investment providers, delivers all encompassing advice and support to individuals and families who wish to establish permanent residency in the US.
For further information, to discuss your requirements or to determine whether you qualify for the EB-5 Immigrant Investor Programme or any other residency or citizenship programmes, please contact Sovereign’s Residency and Citizenship Planning team Below.
