EB-5 Glossary: Key Terms and Acronyms Explained

The EB-5 Immigrant Investor Program is a complex pathway to obtaining U.S. permanent residency. Understanding the specialized terminology and acronyms is crucial for anyone navigating this process. This glossary breaks down the essential concepts you need to know.

Core Program Concepts

These terms define the fundamental structure and requirements of the EB-5 visa.

• EB-5: Refers to the employment-based, fifth preference immigrant investor visa category.
• Immigrant Investor Program (IIP): The official name for the EB-5 program, administered by U.S. Citizenship and Immigration Services (USCIS).
• Regional Center (RC): USCIS-designated economic entities approved to sponsor EB-5 projects. They pool capital from multiple investors.
• Direct Investment: An investment made directly into a new commercial enterprise where the investor manages the day-to-day operations, rather than investing through a Regional Center.

Investment Requirements and Metrics

The financial commitments and job creation metrics are central to eligibility.

Capital Requirements

The minimum investment amount is subject to geographic location:

1. Targeted Employment Area (TEA): Requires a minimum investment of \$800,000.
2. Non-TEA Area: Requires a minimum investment of \$1,050,000.

Job Creation

The program mandates the creation of qualifying jobs:

• Qualifying Jobs: Must represent full-time employment (at least 35 hours per week) for U.S. workers.
• Direct Jobs: Jobs directly hired and managed by the New Commercial Enterprise (NCE).
• Indirect Jobs: Jobs created in supporting industries, often calculated using economic models, typically utilized by Regional Centers.
• Induced Jobs: Jobs created in the local economy due to the spending of wages by the directly and indirectly employed workers.

Immigration and Status Terminology

These terms relate to the investor's immigration journey and status maintenance.

The investor must demonstrate that the required capital has been "sustainably invested" throughout the conditional residency period.

• Form I-526/I-526E: The initial petition filed by the immigrant investor to establish eligibility for the EB-5 visa. I-526E is specifically for Regional Center investments.
• Form I-829: The petition filed to remove the conditions on the investor's permanent residency (Green Card) after two years.
• Conditional Permanent Resident (CPR): The two-year Green Card status granted immediately following the approval of the I-526 petition.
• Source of Funds (SOF): The requirement to prove that the invested capital was legally obtained (e.g., salary, gift, loan repayment).
• New Commercial Enterprise (NCE): The business entity receiving the EB-5 capital and responsible for job creation.

Regional Center Specifics

When investing through a Regional Center, additional acronyms apply:

RC Regional Center. AEI Average Employment Impact, often used in economic reports. OMB Office of Management and Budget, whose guidelines are often used for economic impact studies.

Conclusion

Navigating the EB-5 landscape requires meticulous attention to detail regarding investment amounts, job creation, and USCIS filing procedures. Familiarity with this glossary is the first step toward a successful application.