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EB-5 Visa Glossary: All The Terms You Need to Know
It might be challenging to make your way through the EB-5 Immigrant Investor Program without knowing the ling. This page discusses all the major EB-5 terms so that you can feel more comfortable as you proceed on your path to U.S. residency.
1. EB-5 Visa
An immigration visa within the U.S. granting legal permanent residency (Green Card) to foreign investors making an investment of a specified size in a new commercial enterprise and employing American employees.
2. Immigrant Investor
Foreigners investing funds in an American business under the EB-5 program with the aim of receiving a Green Card.
3. Lawful Permanent Resident (LPR)
A person who has a Green Card and is allowed to work and live in the United States in perpetuity.
4. New Commercial Enterprise (NCE)
A for-profit enterprise that were established after November 29, 1990, or an enterprise that has been reorganized or expanded to become a new entity. This is where one makes the EB-5 investment.
5. Capital
Funds or assets contributed by the investor. It must be at risk of earning a return and cannot be borrowed unless personally secured with the use of the investor’s assets.
6. At Risk Investment
Investor’s capital must be at risk of increase or decrease based on the success of the business. Simply contributing funds or securing return is not sufficient.
7. Targeted Employment Area (TEA)
A rural zone or an area of high unemployment (at least 150% of the national average). Investing in a TEA makes the investor eligible for the reduced $800,000 threshold.
8. Job Creation
A condition to create at least 10 full-time employment opportunities for U.S. employees. The jobs must be created within two years from the date of the investor becoming a conditional resident.
9. Direct Jobs
Actual, definable positions for qualified personnel who work directly in the commercial venture being invested in under EB-5.
10. Indirect Jobs
Jobs indirectly created as a consequence of the investment but not directly within the business—usually sustained through economic modeling. Only regional center projects can include these.
11. Regional Center
Economic unit designated by USCIS where EB-5 pooling investments are to be invested in economic development activities. Regional centers allow users of direct, indirect, and induced employment.
12. Direct EB-5 Investment
An investment in which the investor personally participates in the day-to-day activities or in policy making within the firm. Generation of employment must be direct.
13. Indirect EB-5 Investment
An investment that is made through a regional center in which job creation can include indirect and induced employment. Management involvement by the investor is passive or minimal.
14. USCIS (U.S. Citizenship and Immigration Services)
Government agency responsible for managing lawful immigration, including processing of EB-5 petitions and Green Card applications.
15. Form I-526
First petition filed with USCIS to create eligibility for the EB-5 program through a regional center project. It provides investment details, job creation plan, and source of funds.
16. Form I-526
First petition (pre-2022 updates) filed by direct investors investing. Currently, regional center investments use I-526E.
17. Source of Funds
Evidence that the investor’s funds were legally obtained. This may be tax returns, business records, real estate deeds, loans, inheritances, or gifts.
18. Path of Funds
Paper trail documenting how investment money moved from the legal source to the EB-5 investment, step by step.
19. Form I-829
Filed 90 days before the second anniversary of receiving conditional residency. Requests condition removal by proving the investment was held and jobs were created.
20. Conditional Green Card
Two-year status of residence given at approval of the EB-5 investment. Conditions are lifted with approval of the I-829 petition.
21. Unconditional Green Card
Permanent residence free of the condition of two years. Given after the USCIS approves the I-829 petition.
22. Adjustment of Status
If already in the U.S. with a valid visa, investors can submit Form I-485 to convert to conditional permanent residence without having to leave the country.
23. Consular Processing
The process of submitting a visa application outside the U.S. at a U.S. embassy or consulate following approval of I-526E.
24. Priority Date
The date USCIS receives your I-526E application. It establishes your position in line for visa availability.
25. Visa Bulletin
Monthly notice of the U.S. Department of State that reports when immigrant visa numbers become available by chargeability country and visa classification.
26. Reserved Visas
A portion of EB-5 visas reserved each year for specific categories:
- Rural projects
- High unemployment regions
- Infrastructure projects
27. Redeployment
If your capital will have to remain “at risk” later than the initial period of investment due to delay on the part of USCIS in processing, it can be redeployed in another qualifying project.
28. Sustainment Period
The duration of time that your investment will have to remain in the project. Typically, this is your conditional residency period until the I-829 filing and approval.
29. Exit Strategy
A plan for when and how the EB-5 investor will have their capital returned. This is typically established in project offering documents.
30. Offering Documents
Legal and financial reports (like the Private Placement Memorandum or PPM) declaring the investment structure, risks, and return terms.
31. Private Placement Memorandum (PPM)
A legal report made available to potential investors declaring all the risks and details of the investment project, including use of funds and return strategy.
32. EB-5 Reform and Integrity Act of 2022
Regulations renewing the EB-5 Regional Center Program and adding other compliance, transparency, and investor protection requirements.
33. Child Aging Out
Children should be unmarried and under age 21 to continue as derivatives. With the Child Status Protection Act (CSPA), your I-526E filing date can lock in age so that they can continue to qualify.
34. Material Change
Significant alterations to an investment or project after submitting the I-526E. These will have an impact on visa eligibility and can require a new petition.
35. RFE (Request for Evidence)
A USCIS letter asking you for additional documents or clarification when deciding your petition.
36. NOID (Notice of Intent to Deny)
A USCIS letter indicating they will deny your petition unless you provide strong evidence to overcome the issue(s) presented.
37. Due Diligence
The process of investigating a project, regional center, or service provider to evaluate risk and confirm compliance before investing in an EB-5.
38. Immigration Attorney
A professionally qualified legal professional who deals with U.S. immigration law. It is strongly recommended to hire an attorney to effectively operate the EB-5 process.
39. Business Plan
A detailed proposal outlining the way the enterprise will use the investment, earn income, and meet job creation requirements. It must meet USCIS requirements.
40. Economic Report
Input-output modeling-based report to calculate the generation of jobs, specifically useful for regional center projects to establish indirect job generation.
Work with trusted experts
Managing EB-5 investments is complex, but you don’t have to do it by yourself. Dealing with experienced professionals—immigration attorneys, financial advisors, and registered regional centers—can make it a reassuring experience and reduce the possibility of costly mistakes.
Ready to invest in EB-5 wisely?
Whether you’re new to EB-5 or down to your last few project possibilities, we’re here to help. Call to schedule a consultation