If you're an international student studying in the United States on a F-1 visa, you might be wondering about your options for staying in the country long-term. While the path to permanent residency might seem complex, the EB-5 immigrant investor program offers an interesting alternative that many students don’t know about. Let's explore how these visa categories differ and what you need to know about making the transition.
The answer is Yes - and you have more flexibility than you might think. As a F-1 visa holder, you can apply for an EB-5 visa at any point during your stay in the United States. Whether you're just starting your first year of school, in the middle of your studies, or even during your Optional Practical Training (OPT) period, the option is available to you.
However, there are some important requirements to keep in mind. You'll need access to the minimum investment amount of $800,000, and if you're presently in the U.S., you must qualify as an accredited investor with at least $1 million in investable assets. Many students receive the funds for their investment through a gift or loans from family members, which is perfectly acceptable, as long as you can demonstrate that the money comes from legitimate sources.
When it comes to processing times, flexibility is key. The timeline for obtaining your EB-5 visa after applying from F-1 status can vary significantly, primarily depending on how quickly the U.S. Citizenship and Immigration Service (USCIS) processes applications. Currently, processing times typically range from 4 to 18 months. While there aren't set deadlines or guaranteed timeframes, there's good news - concurrent adjust filing options may be available, which can help streamline the process and provide you with work and travel authorization.
If you are considering this path, it's smart to apply early, ideally while concurrent filing is available for your country of origin. This gives you the best chance of completing the process before your F-1 visa or OPT expires.
One of the most attractive aspects of the EB-5 visa is the independence it offers. Unlike your F-1 visa, which ties you to a specific school and requires maintaining student status, or an H1-B visa that ties you to an employer, the EB-5 visa gives you complete freedom. You won't need an employer sponsor or school sponsorship, and there are no restrictions on where or how you work. Want to start your own business? You can do that. Interested in changing jobs or moving to a different state? That's completely fine too. You can also apply to internships during the school year and participate in the recruitment process so that upon graduation you do not have the stress of the OPT process.
The advantages of choosing the EB-5 path go beyond just employment freedom. You're not dealing with any lottery systems or random selection processes like some other visa categories. Instead, you're on a direct path to permanent residency without the hassle of ongoing renewals. If concurrent filing is available, you might even be able to file for adjustment of status while your EB-5 petition is processing.
For students pursuing higher education in the United States, the EB-5 visa can offer significant tuition advantages. As lawful permanent residents, EB-5 visa holders qualify for in-state tuition rates at public universities after establishing residency in their chosen state, typically after living there for12 months. This can result in substantial savings compared to the higher rates charged to international students or out-of-state residents.
In addition, EB-5 visa holders, as permanent residents, have significantly better access to financial aid opportunities compared to international students. They can apply for federal student loans through FAFSA (Free Application for Federal Student Aid) and qualify for government-backed education loans with more favorable interest rates and repayment terms than private international student loans. Additionally, permanent residents are eligible for many scholarships and grants that are restricted to U.S. citizens and permanent residents, opening a much broader range of funding opportunities that are unavailable to international students. This includes merit-based scholarships from universities, need-based institutional aid, and various state and federal grant programs.
Your family benefits too. With an EB-5 visa your spouse and unmarried children under 21 are eligible for green cards without any additional investment required. This means access to American educational opportunities and the ability for your spouse to work freely in the U.S.
It's also worth noting that the $800,000 requirement isn't just a fee, it's an investment that you may potentially recover after the minimum investment period. While you're working toward your green card, your investment is contributing to U.S. economic growth and job creation.
Timing is crucial when planning your transition. Keep an eye on concurrent filing availability for your country and plan around your F-1 visa and OPT expiration dates. You'll need to think about securing the minimum investment amount, meeting accredited investor requirements if applicable, and gathering all necessary documentation.
Speaking of documentation, you'll need to prepare quite a bit of paperwork. This includes proof of where your investment funds came from, investment documentation, verification of your current F-1 status, academic records, and financial statements. While it might seem overwhelming, proper organization and preparation can make the process much smoother. It is important to work with an experienced immigration attorney that has vast experience representing investors for the EB-5 Visa as this will ensure that your petition and documentation is in compliance with the program's requirements.
The EB-5 program offers a unique opportunity for F-1 students to secure permanent residency through investment. Yes, the initial financial requirement is substantial, but the benefits of permanent residency, career freedom, and family inclusion make it worth considering if you have the means to invest.
Success in this transition comes down to careful planning, thorough preparation, and timely application. Given the complexity of immigration law and investment requirements, it's wise to work with qualified immigration attorneys and investment advisors who can guide you through the process and ensure you meet all program requirements. They can help you understand the nuances of your specific situation and maximize your chances of a successful transition from student to permanent resident.
Peachtree Group has more than 40 years’ experience in EB-5 investing. Have questions about EB-5, visit our website or fill out our contact form.
The EB-5 Visa program is a pathway for foreign investors seeking permanent residency in the United States. The EB-5 Regional Center Program stands out because it pools investments in specific geographic areas, stimulating economic growth and job creation.
To improve the administration of the Regional Center Program, on February 5, 2024, a bipartisan group of four US Congressmen introduced the EB-5 Regional Center Program Advisory Committee Authorization Act. Adam Greene, EVP EB-5 for Peachtree Group was in Washington D.C. recently meeting with congressional staffers as part of the IIUSA quarterly fly-in. It was a hectic day meeting and discussing EB-5 with 18 Congressional offices. Here is what the IIUSA delegation explained to the staffers:
The EB-5 Regional Center Program Advisory Committee Authorization Act, which is supported by IIUSA, would establish an advisory committee inside U.S. Citizenship and Immigration Services (USCIS) to communicate, coordinate, and advise USCIS on administering the Regional Center Program.
The purpose of the Act is to establish an advisory committee to communicate, coordinate, and advise USCIS on administering the Regional CetnerProgram.
The EB-5 Regional Center Program Advisory Committee Authorization Act will help EB-5 investors navigate the complex landscape of the EB-5 Program in the United States. As an officer of IIUSA and a member of the Public Policy committee, Peachtree’s Adam Greene is able to participate in discussions with policymakers as they refine the details of this legislation. EB-5 investors can look forward to potential enhancements that will strengthen their confidence in the program and pave the way for successful outcomes.
For more information on the EB-5 Visa Program or Peachtree Group’s offerings, Contact Us.
About Peachtree Group
Peachtree Group is an investment firm driving growth with a diverse portfolio of commercial real estate assets and other ventures, with a specialty in hospitality. We’ve executed hundreds of investments since inception with a focus on real estate acquisition, development, and lending. Today, we manage billions in equity, augmented by services designed to protect, support, and grow your investment.
The United States Citizenship and Immigration Services (USCIS) has recently announced a significant 204% increase in the filing fees for the I-526E, Immigrant Petition by Regional Center Investor, the crucial, first step in the EB-5 Immigrant Investor process. This adjustment in fees has near-term implications for prospective EB-5 investors. This article delves into the details of the fee increase and its potential impact on individuals seeking U.S. permanent residency through the EB-5 program.
The EB-5 Immigrant Investor Program offers a pathway for foreign investors to obtain a U.S. green card by making a qualifying investment in a new commercial enterprise that generates employment for U.S. workers. TheI-526E petition is a vital component of the application process, serving as the initial step in demonstrating the investor’s commitment to the program.
According to the USCIS website (Frequently Asked Questions on the USCIS Fee Rule | USCIS), the I-526E fee will increase from $3,675 to $11,160, a 204% increase, on April 1, 2024. This adjustment is part of the USCIS’s broader efforts to cover the escalating costs associated with processing and adjudicating immigration petitions. The fee increase applies to all new I-526E filings. EB-5stakeholders are still waiting for USCIS to conduct a separate fee study required by the new EB-5 law (the EB-5 Reform and Integrity Act of 2022, or the “RIA”). Section 106 of the RIA requires USCIS to perform a fee study about the level of fees needed to adjudicate EB-5 related petitions in a timely manner. The April 1, 2024 increase in fees is separate from any future increase that may result from this required fee study, so investors should stay informed about potential further increases in the future.
The USCIS’s decision to raise the I-526E filing fees introduces a new dimension to the already intricate landscape of the EB-5Immigrant Investor program. Prospective investors are advised to closely evaluate the updated fee structure, engage with immigration professionals for tailored advice, and make informed decisions based on their individual financial circumstances. As the EB-5 program remains an attractive avenue for obtaining U.S. permanent residency, investors should stay informed and adapt to changes in order to navigate the evolving landscape successfully.
Peachtree Group has current offerings that are structured to qualify investors to apply for the EB-5 program.
To learn more about EB-5 and Peachtree’s EB-5 offerings, fill out our contact form.
About Peachtree Group
Peachtree Group is an investment firm driving growth with a diverse portfolio of commercial real estate assets and other ventures, with a specialty in hospitality. We’ve executed hundreds of investments since inception with a focus on real estate acquisition, development, and lending. Today, we manage billions in equity, augmented by services designed to protect, support, and grow your investment.
On October 11, 2024 the U.S. Citizenship and Immigration Services, (USCIS), the American federal agency that oversees immigration, issued long-awaited guidance about the investment period (known as the “sustainment period”) required for EB-5, America’s residency by investment program.
The guidance stated that investors may receive back their required $800,000 capital after just two years from investing. While many in the EB-5 world have been waiting for USCIS to clarify the sustainment period requirement, the October 11 USCIS policy leaves open many questions, including whether the guidance itself was issued in accordance with proper procedures required under US law.
The Official Statute
The official statute regarding EB-5 was updated with the passage of the “EB-5 Reform and Integrity Act of 2022” (the “RIA)” on March 15, 2022. As with the federal agency administering any official statute, USCIS must write formal regulations under a proscribed process. Only after a formal rulemaking process, which requires a public notice and comment process, do regulations become the rules under which the law is administered.
While EB-5 program participants have been asking USCIS to issue guidance and regulations, it is not clear that USCIS has the legal authority to change existing rules unless and until it follows the rule making process. This is especially true in cases where existing regulations can be read as consistent with the new statute, as in the case of the sustainment period.
The Cause of Confusion
The cause for this confusion is statutory language in the new law itself. The law requires that the would-be immigrant’s investment “is expected to remain invested for not less than 2 years.” The section of the EB-5 law regarding “removal of conditions”, or when the investor has a permanent green card, was edited to eliminate specific wording that the investor “sustain” the investment. The removal of conditions section, however, allows for an investor to have an extra year, beyond the initial two-year period of conditional residency, to prove job-creation only if they keep their capital invested.
USCIS Interpretation
It seems that USCIS interpreted these two provisions to require just two years of active investing. USCIS went further to require that the initial investment remain in the initial project until sufficient jobs have been created. However, the new law also provides for “redeployment” if an initial investment is repaid before an investor is qualified to be repaid.
Remain Invested or Redeployment
A requirement to redeploy capital is illogical if the initial investment must satisfy the minimum sustainment period and job-creation requirements. The ability to withdraw capital after just two years seems illogical if the law allows an extra year to prove job-creation only if that capital remains invested for longer. When the RIA is read in its entirety, the new USCIS guidance does not seem to hold up.
Investment Timeline Defined
The question of when the two-year investing timeline starts is also unanswered. The USCIS guidance indicates that the start date is when the full amount of the investment is “made available to the job-creating entity.” Is this when the EB-5 money is spent? When the loan is closed, but not yet funded? Can the EB-5 funds be deposited and not used by the job-creating entity? How does bridge financing affect this calculation? These are all unanswered questions.
Structuring EB-5
In conclusion, EB-5 project sponsors must structure the EB-5 instrument responsibly, and EB-5 investors should not just rush into a deal that promises money back in two years. For now, it seems safest to maintain the EB-5 investment in the initial project for at least two years after the full amount of the EB-5 funds have been transferred to the JCE/borrower. Investors should stay informed of ongoing developments about the sustainment period, as this issue is sure to come up, again, in courts or USCIS policy in the future. More importantly, no matter what may or may not have changed in the rules, EB-5 investors must evaluate the financial and immigration risks of potential investments thoroughly.
To learn more about the EB-5 Visa program and Peachtree’s EB-5 offerings, fill out our contact form.
