Only 1 EB-5 Investor Permitted for Direct Investment

The EB-5 Investor Visa program has long been a pathway for entrepreneurs and investors aiming to establish businesses in the United States while securing permanent residency. However, recent changes to the program’s structure have significant implications for potential investors. Understanding these changes is crucial for anyone looking to leverage this visa category for immigration and business development purposes.

Traditionally, the EB-5 visa allowed multiple investors to pool their resources in a single enterprise, with each participant eligible for a green card if they met the investment thresholds and job creation requirements. This collaborative approach made it feasible for smaller investors to participate in larger projects that could meet the EB-5 program’s stringent requirements.

As of March 11, 2022, the rules governing the EB-5 visa have undergone a noteworthy transformation. Now, only one investor per business venture is eligible to receive a green card. This shift dramatically alters the dynamics of group investments and necessitates a more solitary approach to qualifying for an EB-5 visa. Prospective investors must now either fully fund a project themselves or ensure that their investment is the primary one recognized for immigration benefits.

This change heightens the stakes for potential investors, as the competition for viable and qualifying EB-5 projects may increase. It also places a greater emphasis on thorough due diligence and the need for a well-structured business plan that clearly delineates ownership and investment stakes. Investors must be more strategic in selecting projects, focusing on those that not only meet the financial thresholds but also provide a clear path to green card eligibility for themselves.  Investors can no longer pool funds to get multiple green cards with one entity unless you are using a regional center.

Given the restrictive nature of the new rule, exploring alternative visa options may be prudent for some investors. Other investment-based visas, such as the E-2 visa, might offer more flexibility for certain nationalities and investment levels, though they do not provide a direct path to permanent residency.  In addition, pooled investments can be done with a Regional Center so EB-5 could still be an option.  A regional center has some risks so you should evaluate those before going forward.

Understanding the recent EB-5 visa adjustments is essential for any prospective investor. Take advantage of our complimentary resources or book a consultation today to personalize your immigration and investment plans in light of these changes.