How Much Does the EB-5 Program Actually Cost?

The EB-5 Immigrant Investor Program offers a pathway to U.S. permanent residency through a qualifying investment in a commercial enterprise. This program allows eligible foreign nationals to become lawful permanent residents by stimulating the U.S. economy through foreign capital investment and job creation. Understanding the financial commitments involved, beyond just the principal investment, is crucial. The program entails various costs, including the direct investment, application fees, and professional service charges.

Required Investment Amounts

The EB-5 program requires a direct capital investment into a new commercial enterprise. The standard minimum investment amount is $1,050,000.

A reduced minimum investment of $800,000 is available for projects located within Targeted Employment Areas (TEAs). These areas are defined as either rural areas or regions experiencing high unemployment. A rural area is typically outside a metropolitan statistical area and has a population of less than 20,000, while a high unemployment area maintains an unemployment rate of at least 150% of the national average.

The capital contributed must be “at risk,” meaning it is subject to potential gain or loss based on the success of the commercial enterprise, with no guaranteed return of capital. This capital can consist of cash, equipment, inventory, other tangible property, or cash equivalents. Indebtedness secured by assets owned by the investor may also qualify, provided the investor is personally liable and the new commercial enterprise’s assets do not secure the debt.

Associated Application and Administrative Fees

In addition to the primary investment, several application and administrative fees are incurred throughout the EB-5 process. These fees are separate from the capital investment and are generally non-refundable. United States Citizenship and Immigration Services (USCIS) filing fees form a significant part of these costs.

Key USCIS fees include:
Form I-526E, Immigrant Petition by Regional Center Investor: $11,160, plus an additional $1,000 Integrity Fund fee.
Form I-485, Application to Register Permanent Residence or Adjust Status (for U.S. residents): $1,440 for individuals aged 14 and above, or $950 for those under 14 filing with a parent.
Form DS-260, Immigrant Visa Application (for applicants outside the U.S.): $345 per applicant.
Form I-829, Petition by Investor to Remove Conditions on Permanent Resident Status: $9,525.

Biometrics fees are also required. These government fees are subject to change and are paid directly to USCIS.

Attorney fees, covering legal guidance, petition preparation, and representation, can range from $15,000 to $50,000 for the entire process. The portion for the I-829 petition typically ranges from $5,000 to $10,000.

Regional centers, which manage most EB-5 projects, typically charge administrative or subscription fees for their services. These fees, which cover operational costs and project management, commonly range from $50,000 to $80,000 and are usually paid upfront. Additional costs may arise from due diligence performed by third-party firms or the regional center, escrow management fees, document translation, notarization, and medical examinations.

Source of Funds Documentation Requirements

Proving the lawful source of investment funds is a significant requirement in the EB-5 process. U.S. Citizenship and Immigration Services (USCIS) mandates a clear and comprehensive trace of the origin of all funds, including the principal investment and any associated fees, to ensure they were obtained legally. This requirement extends to all capital, regardless of how long ago it was acquired.

Compiling this documentation can be a complex and time-consuming endeavor, necessitating the involvement of financial professionals such as accountants or forensic accountants. These professionals assist in gathering and organizing extensive financial records, which can include personal and business tax returns for the preceding five years, business registration records, and payroll records. For funds derived from specific transactions, documentation might include gift deeds, loan agreements, property sale documents, or inheritance records.

Bank statements are also critical to demonstrate the movement of funds from their origin to the investment vehicle. The cost associated with engaging these financial experts to prepare a comprehensive “source of funds” report can vary depending on the complexity of the investor’s financial history. Inadequate or incomplete documentation in this area can lead to significant delays, requests for additional evidence, or even denial of the EB-5 petition.