Permanent residency in the US, no sponsorship requirements, and future citizenship are some of the major EB-5 visa program benefits investors can enjoy as part of the program. In recent years, over 1.5 million immigrants have chosen to make America their new home. However, there are some common misconceptions about the visa program that could be deterring potential investors from taking the leap onto US soil.
Is the EB-5 visa only for the wealthy? Is the program plagued with fraud? In this article, we’ll address and debunk some of the most
5 common myths surrounding the EB-5 visa program:
Myth #1: The EB-5 Program Enables Investors To “Buy” US Citizenship
One of the main misconceptions surrounding the EB-5 US visa for investors is that it is a fast-track method for obtaining US citizenship. This could not be further from the truth given that applicants are subject to rigorous background checks, various restrictions, and a two-year application process.
There is a misunderstanding that investors exchange their funds for citizenship without contributing something in return. Applicants must adhere to the following requirements before they can enjoy EB-5 visa benefits:
- Provide a minimum investment of $1.8 million (or between $500,000 and $900,000 in the case of a Targeted Employment Area)
- Create or preserve at least ten new jobs for US workers
- Risk investment capital over two years
Permanent residency is granted to applicants who fulfill the requirements of the two-year application process and citizenship can only be pursued after the applicant has resided in the US for five years.
Myth #2: The EB-5 Program is “Plagued by Fraud”
Some people believe that the EB-5 US visa program is rife with fraud and this can deter potential investors from choosing the pathway. The reality is that the EB-5 visa program is highly regulated and monitored by the US Citizenship and Immigration Service (USCIS) and other authorities to ensure applications are lawful.
Background checks, strict vetting measures, and continuous monitoring contribute to the safeguarding and integrity of the EB-5 visa program. The USCIS also has dedicated prevention units to deal with suspected cases of fraud. You can find out more information on EB-5 visa security measures by consulting with a visa expert such as Shoora EB5.
Myth #3: The EB-5 Visa is Only for the Wealthy
Although the EB-5 visa requires a large investment amount, there are more affordable options for investors with smaller funds. The minimum investment for direct investment projects is $1.8 million, however, there is a lower-cost option of $500,000-$900,000 for Targeted Employment Areas (TEAs).
It is also important to note that the investment capital is at risk for the two-year duration of the visa application. Even though it is a substantial investment, the applicant may not reap the rewards until after the EB-5 visa has been granted.
Myth #4: The EB-5 Program Benefits Only the Wealthy
Some critics claim that while EB-5 applicants create jobs for US workers, only the investors receive the benefits. In fact, the EB-5 US visa program is structured to benefit numerous areas of the economy including the following:
- Generating tax revenue for local governments
- Revitalizing communities with TEA investments
- Developing the economy by investing in infrastructure, real estate, and business development projects
These benefits demonstrate that the EB-5 program benefits more than just the investors and that the impact extends beyond the applicant.
Myth #5: Lacks Security Checks of Other Immigration Programs
Another common misconception is that the EB-5 visa program has softer security measures in comparison to other US immigration processes. According to Pew Research, there were around 10.5 million illegal immigrants in the United States in 2021. In reality, the EB-5 visa program demonstrates some of the most rigorous security measures including:
- Biometric Screening
- Collaboration With Various US Government Agencies
- Investment Fund Verification
- Comprehensive Background Checks
The documentation list is also extensive for potential investors completing their EB-5 application. Authorities often request additional information from applicants to perform further checks and maintain the security of the United States.
In Summary
Although there are many obstacles to overcome during the EB-5 visa application process, they should not deter you from investing funds in US enterprises. By debunking the common myths associated with the EB-5, you can better understand the true nature of this exciting visa program. The EB-5 is a well-monitored and regulated visa program that is supported by stringent security measures to ensure the safety of your investment. Speak with an experienced visa consultant if you have more questions about the EB-5 visa process.
