The Basics of the EB-5 Progam

Although, most of our current immigration system is broken and impedes our economic prosperity; there is one program within our immigration system that significantly contributes to the U.S. economy and creates U.S. jobs, without costing  taxpayers a dime.  That program is titled EB-5.  The purpose of the EB-5 Program is to promote the immigration of investors who can help create jobs for the U.S. workers through investment of capital into the U.S. economy.

The EB-5 Program has gained popularity recently due to a struggling U.S. economy.  Because funding through this program is a lower-cost form of capital with minimal risk for the U.S. companies, the program has provided much needed capital to areas within the U.S. that have been hit hard by the recent recession and have struggled with high unemployment rate.

EB-5 is an immigrant investor program which allows investors to obtain Lawful Permanent Resident (LPR) status, also known as “Green Card”, if they (1) invest capital (2) in a new commercial enterprise (3) that creates U.S. jobs.  These are the basic three elements of the program.

The statute governing the EB-5 Program provides that the investor must invest at least $1,000,000 in capital in a new commercial enterprise with the exception that if the commercial enterprise is doing business in a “targeted employment area”, the required capital can be as low as $500,000.  “Targeted employment area” is defined as a rural area or an area that has an unemployment rate which is 150% of the national average.  The program requires that a minimum of 10 full-time jobs are created through this investment and that the immigrant investor be engaged in the management of the new commercial enterprise.  Assuming a passive role in regards to his or her investment, does not qualify the investor for a Green Card.

Once the immigrant investor satisfies the initial criteria under the EB-5 Program, the investor along with his/her family (spouse and children under the age of 21) will obtain conditional LPR status for two years.  After the two year period, if the immigrant investor has satisfied all the conditions of the EB-5 Program, then he/she can file a petition to obtain unconditional LPR status.

The EB-5 Program allows cheap financing for U.S. developers because immigrant investors are far more interested in obtaining LPR status than high rate of return on investment.  Therefore, this program is where immigrant and economic aspirations coincide, creating a win-win situation for the U.S. and its workforce and the foreign investors who wish to become permanent residence of the U.S.

If you are a business owner looking for potential investors, or if you are a foreign investor searching for investment opportunities in the U.S., please contact Jeff Senney or Shahrzad Allen at 937-223-1130 or via email or

AND ONE MORE THING:  The team at Bradstreet CPA’s shares an interesting article about a Surprise IRA Tax.  The team noticed that while preparing 2012 individual tax returns in early 2013,  a trickle of problems on Schedule K-1 from partnership investments in IRAs. That trickle became a flash flood this latest tax season. It is a problem which will erupt in an earthquake of tax and penalty if taxpayers receive an unexpected 1099-R for 2014 IRA distributions of which they were unaware!  Click here for the full article.

AUTHOR: Shahrzad Allen