Visa Business Plan – The History of the EB5 Visa

Visa business plan proposals are something that any potential foreign investor has to consider at some point. But, before you launch into forming your ideas, it’s good to understand the history of the American EB5 system and why it exists. This allows you to build your plans on solid, well-informed foundations.

The EB5, a visa for immigrant investors, arrived with the creation of the Immigration Act of 1990 as a method for foreign nationals to gain a ‘green card’ (US citizenship) through investment in American business. Under the first program, the business had to be a brand new commercial endeavor with direct investment; but now investments can be made in so-called ‘Troubled Businesses’ or into job-creating, third-party managed regional centers. If approved, the conditional residency lasts two years. In the 90 days before the end of those two years, documented evidence must be submitted by the investor to prove that at least 10 full-time jobs have been maintained, created or will be created within a reasonable timescale. This documentation is important as it allows you to keep your green card. The EB5 program has seen sweeping changes since its introduction over 25 years ago. As recently as 2011, the United States Citizenship and Immigration Services (USCIS) pushed through changes to encourage more foreign investors with great success. By the end of 2011, 3,800 EB5 applications had been made – a big jump in the 800 or so applications that were received in 2007. In 2014, the program reached capacity for the first time – meaning that competition has never been tougher for foreign investors. In order to ensure success, you need an immigration business plan that will work – and expert EB5 business plan writers to help.

At Immigration Business Plan, we are the go-to experts for visa business plan proposals. We have helped hundreds of businesses achieve EB5 success. Don’t delay and miss out on our highly-valued services, contact us today on +1 (646) 612 7572. Or, if you want to find out more, visit us at https://www.immigrationbusinessplan.com/ or email us via info@staging-immigrationbusinessplancom.kinsta.cloud.

What types of businesses qualify for an EB5 investment?

The EB5 visa program offers foreign investors a flexible path to U.S. residency, accommodating various business models and investment approaches. Here’s a breakdown of the structures and strategies that qualify.

Eligible Business Structures

The EB5 program is notably inclusive when it comes to business structure, offering flexibility to suit a variety of entrepreneurial preferences and investment strategies:

Sole Proprietorships: Ideal for investors who prefer complete autonomy, allowing direct control over business decisions, daily operations, and long-term direction, without the administrative complexity of partnerships or corporate structures.
Partnerships: Whether general or limited, partnerships are attractive to those looking to share responsibilities, resources, and risk with other parties.
Limited Liability Companies (LLCs): A top choice among EB5 investors, LLCs offer a balanced blend of limited liability, operational flexibility, and pass-through tax benefits—making them adaptable across industries and ideal for ventures of varying complexity.
Corporations (C-Corps and S-Corps): C-corporations suit investors focused on growth and outside funding, offering a structure that supports shareholder investment and business scalability. S-corporations, meanwhile, are better for smaller, tightly held ventures looking to minimize tax burdens through pass-through taxation while maintaining corporate liability protections.
Regional Center Projects: These federally approved initiatives aggregate funds from multiple EB5 investors and often allow for indirect job creation, which can simplify the qualification process.

Qualifying Investment Pathways

How you engage with a business is as important as the entity type. Investors can:

Start a New Venture: Build a business from the ground up, generating new jobs and driving innovation.
Expand an Existing Business: Inject capital into an operating company to help it grow, scale operations, and hire additional employees.
Acquire and Revitalize: Purchase an existing business and enhance its operations—revitalizing jobs and expanding economic output.
Join a Regional Center Project: Contribute to large-scale developments that meet EB5 criteria while sharing risk and management responsibilities.

Each path has distinct advantages, depending on your risk tolerance, level of involvement, and long-term goals. Understanding these nuances ensures that your EB5 investment is compliant and strategically aligned with your vision for success in the U.S.

How Long Does the Entire EB5 Process Take?

The EB5 visa process involves several key steps, each with its own timeline. Here’s a comprehensive look at each phase and its duration:

1. I-526 Petition (Immigrant Petition by Alien Investor)

Average Processing Time: Approximately 18 months
What to Know: This petition proves your investment meets EB5 requirements, including lawful source of funds and job creation. USCIS is working on reducing this timeline through operational reforms.

2. Adjustment of Status vs. Consular Processing

After I-526 approval, you’ll either adjust your status in the U.S. or apply at a consulate abroad:

Adjustment of Status (AOS): Approximately 10–14 months (for applicants already in the U.S.)
Consular Processing: Around 8–12 months (depends on your country and consulate wait times)

3. Conditional Permanent Residency

Duration: 2 years
Benefits: You’ll receive a conditional green card allowing you to live and work in the U.S. while your investment meets job-creation and other program requirements.

4. I-829 Petition (to Remove Conditions)

Processing Time: Currently about 2.5 years
Looking Ahead: Times may decrease as USCIS implements efficiency improvements. Approval lifts the conditions on your residency.

5. Achieving Full Permanent Residency

Once your I-829 is approved, you become a lawful permanent resident without conditions, free to live and work in the U.S. indefinitely.

6. Path to U.S. Citizenship

Eligibility: After 5 years as a permanent resident
Timeline Start: The 5-year clock begins when you receive your conditional green card, not after the I-829 is approved.

In Total: From I-526 filing to naturalization eligibility, the full EB5 journey typically spans 7 to 9 years, though timing varies based on case specifics and USCIS efficiency.

How many EB5 visas are available each year, and what is their significance for investors?

Understanding EB5 Visas: Availability and Importance for Investors

Every year, the EB5 visa program makes 10,000 visas accessible to investors worldwide. This opportunity is significant for investors seeking permanent residency in the U.S. because it extends benefits not just to the primary applicant but also to their immediate family, specifically, a spouse and any unmarried children under 21.

Key Benefits of the EB5 Visa:

Pathway to a U.S. Green Card: Secure permanent residence for investors and eligible family members.
Family Inclusion: Spouse and children can enjoy the same residency benefits.
Investment in the Future: Offers a chance to live, work, and study anywhere in the United States.

This program is an attractive pathway for investors aiming to build a life and business in America.

What does "At Risk" mean for my EB5 investment?

Understanding the “at risk” requirement is essential when pursuing an EB5 visa. Your investment must carry real financial exposure—not just a formal transfer of funds. Here’s what that means in practice:

Genuine Risk of Gain or Loss: Your capital must be subject to the natural ups and downs of business. It should have the potential to earn profits—or incur losses—depending on the company’s performance.
No Guarantees: You cannot receive any promises, written or verbal, that your money will be returned. A guaranteed outcome would disqualify the investment under EB5 rules.
No Redemption Agreements: Any arrangement that allows you to pull out your investment at a predetermined time or price undermines the “at risk” requirement and may jeopardize your petition.
It Must Be Equity, Not a Loan: You should be contributing capital as an investor, not acting as a creditor. Loans, even if interest-bearing, typically fail to meet the program’s criteria.
Active Use of Funds: Your money must be deployed for active business operations—not just sitting in a bank account. USCIS looks for clear evidence that your investment is being used to drive growth and job creation.

Meeting these conditions ensures your investment complies with the EB5 program rules and supports your path to permanent residency.

Once my EB5 visa is approved, how soon do I have to enter the United States?

Once your EB5 visa is issued, you must enter the United States within six months of the visa’s issuance date. This six-month period is tied to the validity of the visa, not the approval date of your petition.

What happens next:

You’ll be admitted as a conditional lawful permanent resident upon entry, and your two-year residency period begins immediately.
Your physical green card (the conditional permanent resident card) will be mailed to your U.S. address shortly after arrival.

Key takeaway:

Entering the U.S. within that six-month window is critical—missing it could jeopardize your EB5 status and require you to restart the process.

Can my family members come to the U.S. on my EB5 visa?

Absolutely! As an EB5 investor, your spouse and any unmarried children under the age of 21 can also join you on your journey to the United States. They, too, are eligible to receive their own EB5 visas. This means they can eventually attain lawful permanent resident status, allowing your family to settle together in the U.S. and enjoy the same benefits that come with it.

What are examples of lawful sources of funds for an EB5 visa?

When applying for an EB5 visa, proving that your investment capital comes from a lawful source is critical. U.S. Citizenship and Immigration Services (USCIS) requires detailed, traceable documentation to confirm the legitimacy of your funds. Here are several examples of acceptable sources:

Earned Income: Salaries, bonuses, or dividends from employment or self-employment, supported by tax returns and payroll records.
Real Estate Transactions: Proceeds from selling property, with contracts of sale, title records, and proof of ownership and transfer.
Secured Loans: Loans backed by personal assets (e.g., real estate equity) are allowed, provided the lender, collateral, and repayment terms are clearly documented.
Business Sales: Capital gained from selling a business, supported by purchase agreements, tax filings, and asset valuations.
Inheritance: Funds passed down from a deceased relative, with a will, probate documents, and bank transfer records to validate the inheritance.
Gifts: Money received as a gift is valid, but the donor must also prove the lawful source of their funds and provide a formal gift letter.

For all sources, you’ll need to maintain clear, verifiable financial records, including bank statements, tax documents, and transaction histories. Strong documentation not only strengthens your EB5 application but also ensures compliance with USCIS standards.

What documents are required if the source of funds for an EB5 investment is a gift?

If your EB5 investment is funded through a gift, you’ll need to submit specific documentation to establish both the legitimacy of the gift and the lawful origin of the donor’s funds. Here are the essential documents required:

Gift Letter
- A signed and dated letter from the donor clearly stating:
  - The amount gifted
  - That the funds are irrevocable and not a loan
  - That the gift is intended for your EB5 investment
  - The donor’s relationship to you
Your Bank Statement
- A copy showing receipt of the gifted funds in your account, matching the amount and date referenced in the gift letter.
Donor’s Proof of Lawful Funds
- Evidence showing how the donor legally earned or acquired the gifted funds. This may include:
  - Tax returns
  - Pay stubs or employment income verification
  - Business ownership or sale documentation
  - Real estate or asset sale records
  - Inheritance or investment income documentation
Donor Identification and Financial Records
- Government-issued ID
- Bank statements from the donor showing the withdrawal or transfer of funds
Affidavit of No Expectation of Repayment (if applicable)
- A sworn statement confirming that the donor expects no repayment, reinforcing that the transaction is a true gift.

All documentation should be consistent, translated (if not in English), and professionally organized to support your EB5 petition.

What documentation is necessary if the source of funds for an EB5 investment is from a loan?

If you’re using loan proceeds as your source of funds for an EB5 investment, USCIS requires thorough documentation to confirm the loan is lawful, secured, and compliant with EB5 rules. Here’s what you’ll need:

1. Loan Agreement

A complete, signed loan contract outlining:
- The principal amount
- Interest rate and repayment terms
- Dates of issuance and maturity
- Collateral (if secured)
- Signatures of both borrower and lender

2. Collateral Documentation (if applicable)

If the loan is secured, include:
- Proof of ownership of the asset used as collateral (e.g., property title, stock certificates)
- Appraisal or valuation documents confirming asset value
- Proof that the asset belongs to the investor (not the enterprise)

3. Lender’s Confirmation Letter

A letter from the lender (bank or private individual) stating:
- That the loan was issued
- The amount and terms
- Confirmation of collateral, if any

4. Bank Statements

Show the deposit of loan proceeds into your account
Include statements from both the lender and your own account to trace the fund transfer

5. Proof of Lender’s Lawful Source of Funds (for private lenders)

If a private individual lent you the funds, they must prove how they lawfully acquired the money, with:
- Tax returns
- Pay stubs or income records
- Business or asset sale documentation

6. Translation and Certification

Any documents not in English must be accompanied by certified translations.

Key Compliance Reminder:

USCIS requires that you, not your business, be the loan recipient, and that you remain personally liable for repayment (especially important if the loan is secured). Unsecured loans may still qualify, but their structure must show the funds are genuinely “at risk.”

What documents are needed if the source of funds for an EB5 investment comes from owning a business?

When your EB5 investment is backed by business ownership, meticulous documentation is essential. Here’s a comprehensive checklist of the necessary documents:

Balance Sheets: Provide comprehensive balance sheets from the past several years that reflect your business’s financial health, including key metrics such as assets, liabilities, and net worth.
Business Formation Documents: Submit foundational documents—such as articles of incorporation or articles of organization—that confirm your business’s legal establishment and structure.
Tax Returns: Provide complete business tax returns spanning multiple years to demonstrate financial performance and consistent tax compliance.
Income Verification Letters: Attach a letter from your company’s accountant—or an authorized officer—verifying the income you’ve received as an owner or investor. This adds weight to the legitimacy of your claimed earnings.
Personal Employment Overview: Write a concise but thorough narrative describing your role—your title, responsibilities, duration of employment, and how you’ve been compensated.

Together, these materials help build a credible and transparent case showing that your EB5 investment funds were earned lawfully through your business activities.

What documents are required if the source of funds for an EB5 investment comes from the sale of a property?

If your EB5 investment capital comes from the sale of a property, you’ll need to present a clear and well-documented financial trail to prove the legitimacy of those funds. Here are the key documents required:

Purchase and Sale Agreement: Submit a signed and dated copy of the contract outlining the terms of the property sale, including buyer and seller names, price, and conditions.
Closing Statement (Settlement Statement or HUD-1): Provide the official closing document issued at the time of sale, detailing the financial breakdown of the transaction.
Proof of Payment Received: Include documentation showing how you received the funds, such as bank statements reflecting the wire transfer or deposit of proceeds from the buyer.
Property Ownership Proof: Present records (like the original deed or property tax records) confirming you legally owned the property prior to the sale.
Capital Gains Documentation (if applicable): If available, include tax filings or related documents that reflect the gain realized from the sale to support the source of the proceeds.
Source of Funds for Property Purchase: USCIS often requires a full chain of documentation, so you may also need to show where the money came from to originally buy the property.

Ensuring these documents are organized, legible, and consistent will strengthen your case and help meet the EB5 program’s rigorous standards.