Capital Investment Requirements
- Minimum qualifying investment of $1,000,000, reduced to $500,000 if investment is made in Targeted Employment Area (TEA)
- Investment capital cannot be borrowed
- Investment must be made in a new commercial enterprise
Job Creation Requirements
- Create or preserve 10+ full-time jobs within 2 years for U.S workers directly or indirectly as a result of the investment.
- Preserving jobs is only applicable for investments made in companies that have lost 20% net worth
Targeted Employment Area (TEA) – An area where the rate of unemployment is 150% greater than the national average at the time of investment.
Rural Area – anywhere outside of a city having greater than 20,000 people according to the census bureau or any location designated by the Office of Mangement and Budget.
Full-time employment – qualifying employees of the recipient company must be working over 35 hours per week to be considered full time.
A job-sharing arrangement whereby two or more qualifying employees share a full-time position will count as full-time employment provided the hourly requirement per week is met. This definition does not include combinations of part-time positions or full-time equivalents even if, when combined, the positions meet the hourly requirement per week. The position must be permanent, full-time and constant. The two qualified employees sharing the job must be permanent and share the associated benefits normally related to any permanent, full-time position, including payment of both workman’s compensation and unemployment premiums for the position by the employer.
Direct jobs – These are jobs which can be connected explicitly to the investment obtained through the EB-5 program.
Indirect jobs – This is a bonus of working with a regional center: jobs created as a byproduct of investment through a regional center can be counted as indirect job creation. This classification doesn’t exist outside of regional center EB-5 participation.
U.S. Workers – US citizens or those approved to work within the United States.
Commercial enterprises are businesses that create for-profit activity and lawful operation. These include:
- A sole proprietorship
- Partnership (whether limited or general)
- Holding company
- Joint venture
- Business trust or other entity, which may be publicly or privately owned
Holding companies and their subsidiaries do fall under this definition, assuming that each party is operating lawfully and is for-profit.
Owning and operating a home for personal use does not fall under this definition of a commercial enterprise.
New commercial enterprise, is:
- Established after Nov. 29, 1990
- Established on or before Nov. 29, 1990, but the business was purchased or acquired and re-formed constituting a new entity
- Established on or before Nov. 29, 1990, but the business grew by 40% in net worth or employees through the EB-5 investment