To EB-5 or not to EB-5?

The term ‘EB-5’ has been buzzing around a lot lately. But what is EB-5? What does it stand for? And, more importantly, what does EB-5 mean for me? First things first: EB-5 is a United States Citizenship and Immigration Services (USCIS) Immigrant Investor Program. The program was created in 1990 to stimulate the US economy through job creation and capital investment by foreign nationals. Because of the sustainable job creation of each investment, the US government allows EB-5 investors to apply for permanent residency within the United States. Due to the unfortunate state of the US economy, the EB-5 Program has seen a significant increase in popularity as it addresses several fundamental needs that can help to restore the economy—job creation, economic stimulation, and alternative funding sources.

For a firmer grip on what EB-5 is, we must answer the second question: What does EB-5 stand for? EB-5 stands for Employment Based-Fifth Preference. There are five ways to obtain US visas through employment. The first four preferences relate to your own employment. The last, or fifth, preference requires that the applicant employ others. Since the Immigrant Investor Program focuses on job creation and the employment of others, it satisfies the fifth preference and is thus called the EB-5 Immigrant Investor Program, or EB-5, for short.

Finally, the most important question: What does EB-5 mean for me? By its very nature, the EB-5 program provides plenty of benefits to US citizens. The purpose of the program is to create jobs and stimulate local economies through foreign investments. Jobs are created in areas of high unemployment and employ US citizens. With the addition of jobs, the EB-5 Program helps to stimulate the economy as additional revenue is introduced into the area. The biggest perk of all: these benefits are achieved through EB-5 investment funds—not US tax dollars.

So how do these EB-5 investors create the jobs through their investments? The easiest way is to team up with a Regional Center. Two years after the EB-5 Immigrant Investor Program was created, the USCIS introduced the EB-5 Pilot Program. The EB-5 Pilot Program created the Regional Center. A Regional Center is a United States government approved entity dedicated to the promotion of economic growth, improved regional productivity, job creation, and increased domestic capital investment of a regional.

Regional Centers, like Chicagoland Foreign Investment Group (CFIG), facilitate the matching of foreign investment funds with viable projects. CFIG, in particular, is approached both by foreign nationals interested in obtaining an EB-5 visa and local businesses and projects in search of alternative funding sources. Regional Centers are popping up all across the country. The past few years have seen a growth in the number of designated EB-5 Regional Centers nationwide of over one hundred percent.

The seemingly overwhelming immigration and funding processes can be easily managed by the firms associated with Regional Centers. For example, CFIG was born out of both the need for a Regional Center in Chicago and its principal’s 16 years of experience as an immigration and international business law attorney. Regional Centers offer the perfect starting point for discovering the role that the EB-5 Immigrant Investor Program can play in your life and the life of your project.