EB-5 Investment Projects
The EB-5 Immigrant Investor Program offers foreign investors a pathway to permanent residency in the U.S., as well as a number of additional benefits.
One of the most critical decisions for potential investors is selecting the right EB-5 investment project. But with so many options, knowing which one is right for you can be tricky.
By understanding your options, you can make more informed decisions and find the right project that aligns with your needs and goals.
In this guide, we explore EB-5 investment projects. We will look at the ways to invest, the main types of EB-5 projects, as well as other key information.
Types of EB-5 investment projects
EB-5 investment projects can be in almost any sector or industry as long as they meet USCIS criteria. Below are some of the most common categories of EB-5 projects.
Real estate developments
Real estate development projects are among the most common types of EB-5 projects, accounting for a large portion of the market.
Real estate can include residential and commercial properties. Some examples of real estate projects include:
- Housing
- Shopping centres
- Hotels
- Office buildings
For EB-5 investors, real estate allows them to invest their capital in a tangible asset that produces a steady rate of return.
Hospitality and tourism
The U.S. is one of the most visited countries globally. Data from Statista shows that nearly 51 million people visited the country in 2023, and travel and tourism are expected to generate $198.70 billion by 2024. As a result, hospitality and tourism are lucrative markets.
EB-5 investments in this sector aim to capitalise on tourism trends and generate revenue. Projects that may require EB-5 funding include hotels, resorts, and restaurants. Some of these are large franchises like Hilton and Marriott Hotels.
According to a report, franchising added around 254,000 jobs in 2023. This makes the sector a good option for fulfilling the EB-5 visa program’s job creation requirement.
Infrastructure projects
The EB-5 Reform and Integrity Act of 2022 defines an infrastructure project as one administered by a governmental entity. This could be federal, state or local authority.
Projects can include:
- Transportation
- Energy projects
- Water and sanitation systems
- Telecommunications
Of the 10,000 EB-5 Visas available each year, 2% are reserved for those who invest in infrastructure projects.
Manufacturing
Manufacturing ventures support the production of goods and the creation of jobs in the U.S. These projects may include:
- Factories
- Production facilities
- Industrial parks
Technology and innovation
The U.S. has a third of the $5 trillion global information technology (IT) sector, making it the world’s largest tech market. The tech industry accounts for $1.9 trillion of the U.S. GDP and over 12 million jobs.
Thanks to large hubs such as Silicon Valley, the U.S. has a growing number of tech companies. CompTIA data shows over 557,000 tech companies in the United States.
EB-5 projects focusing on technology and innovation often create new products and services. These projects can include tech startups, research and development initiatives or innovation centres.
Ways to invest in EB-5 projects
In addition to having multiple EB-5 projects to choose from, there are various ways to invest. Investors can either go direct or invest through a regional center.
With both options, the minimum investment amount for the EB-5 is $1,050,000. However, if the project is in a certain area, this amount can be reduced to $800,000.
Direct investments
As the name suggests, direct investment projects are those where capital is invested directly into a business. This is typically either:
- A new commercial enterprise OR;
- Expanding an existing business
Investors are tasked with actively managing the business. They must also create at least 10 full-time jobs for U.S. workers. With this option, only direct employment counts towards meeting the criteria.
Regional centers
EB-5 regional centers are entities designated by the United States Citizenship and Immigration Services (USCIS). Around 95% of foreign investors choose the regional center route, making them the most popular option.
Regional centers connect investors with developers. They pool funds from multiple investors, which are used to fund large-scale projects. These often include real estate development or local infrastructure projects.
Unlike the direct option, investors are not involved in the day-to-day running of the business. Also, both direct and indirect employment count towards the job creation requirement.
Targeted employment areas (TEAs)
A targeted employment area (TEA) is a specific geographic area. For an area to be granted TEA status, it must be either:
- A high unemployment area – 150% above the national average OR;
- A rural area
These areas are crucial in the EB-5 program as they help develop the areas most in need. At the same time, TEAs help to reduce the minimum investment amount for investors.
For non-TEA projects, the minimum capital investment amount is $1,050,000. However, for EB-5 projects in a TEA, the price is reduced by nearly 24% to $800,000.
Are EB-5 investment projects risky?
There is no such thing as a risk-free investment. All investments carry a certain level of risk, and EB-5 projects are no different. In fact, the USCIS states that a foreign investor’s capital must be’ at risk’ for an EB-5 project to qualify.
The term ‘at risk’ simply means that capital used to invest is subject to gains and losses. In other words, there are no guarantees, just like with any other type of investment.
Every investment carries a different level of risk. Typically, the higher the potential returns, the higher the level of risk.
Speak to one of our experts who can help you identify the best EB-5 projects based on your goals and appetite for risk.
Securing a U.S. Green Card with Holborn
Of the employment-based visa options, the EB-5 program is typically the fastest way to get a U.S. Green Card because it does not require a job offer.
However, other schemes, such as the EB-3, may be more suitable for some people, depending on their situation and goals. Download our EB-3 and EB-5 factsheets to learn more about each program in more detail. Alternatively, speak to one of our specialists.
Holborn Pass is an international leader in investor visas. Our expert team provides a bespoke, end-to-end service and support throughout the application process.
We are part of the wider Holborn Assets Group, a leading, award-winning financial advisory company with over $2 billion in assets under management (AUM).
We have successfully assisted hundreds of individuals and families in securing golden visas. To find out how we can help you, book a consultation with one of our advisers.