After November 29, 1990, Congress created a conditional residency for persons who invest $1,000,000 (or under certain circumstances $500,000 in a “targeted employment area”) in a new commercial enterprise which will benefit the U.S. economy in creating at least 10 full-time jobs.
10,000 immigrant visas per year are available to this EB-5 category while 3,000 of which numbers are reserved for “targeted employment area”. Since legal requirements to meet this EB-5 immigrant visa are very restricted and stringent, all visa numbers are never been used out every year since 1990. The record shows that only roughly 500 to 1,000 immigrants obtain their permanent residence annually through this category.
In 1998, the previous Immigration and Naturalization Service (INS) made EB-5 immigrant petition even much more difficult by deciding four precedent decisions which stringently construed the statutory requirements and significantly limited eligibility of this petition. In realty, it is estimated that CIS approves only approximately 15 percent of EB-5 petitions. Therefore, it is extremely challenging work for attorney and investor to successfully file this immigrant petitions since the operation or purchase of business in real world might not fully comply with legal standard for immigration purpose.
The key to succeed in EB-5 petition is to contact attorney before starting for the purchase or acquisition of new business in order to completely adhere to all legal criteria from the beginning to the end. For instance, many petitions were denied because of investors started to transfer funds to purchase new business in a manner which is normal to business practice but is not acceptable for immigration.
Authority: Section 305(b)(5) of the Immigration and Nationality Act (INA) provides statutory foundation for this EB-5 immigrant visa. 8 U.S.C. §1153(b)(5).
Criteria of EB-5 Immigrant Investor
Removal of Conditional Residence Status