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EB-5 Disadvantages

EB-5 Disadvanatges

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The EB-5 visa is another pathway for foreign investors to travel to the United States, however, there are certain limitations that should be taken into consideration when thinking of investing. It is unfortunate that the program has been used as means of money laundering and as a result, immigration officials pay close attention to all the information provided to make sure they are legitimate.

The cost for the whole process require the investor to spend more than the minimum amount required for EB-5 visa, and this is why the EB-5 visa is also known as the “Millionaire Visa.” The EB-5 visa may have a rigorous process with multiple steps, and it may require the applicant to invest more money throughout the whole process and thereafter. Furthermore, just like any other form of investment, it is important to note that there is no guarantee of a successful investment return.


  • Unlike the E-2 visa category, the EB-5 requires a higher investment at a minimum of $500,000 for a “targeted employment area” and $1,000,000 for a new commercial enterprise.

  • Additionally, one will need to pay legal fees and other expenses such as any means that are necessary to create and maintain employment for 10 workers

  • Under a regional center investment, the investor does not manage the regional center, which makes it harder for investor-entrepreneurs to understand;

  • It is required that the EB-5 investor prove that the source of the amount invested is from legitimate means, such as employment, business ownership, investment, inheritance, or a gift. Should it be a gift, it is still required for it to have come from a legitimate sources. This is no easy task.

It is important that the EB-5 visa applicant considers all options and looks carefully at the advantages and disadvantages that come from this visa. The EB-5 visa requires the individual to invest more capital than other visas, and must provide detailed information as to where the money came from. Thus, the applicant should think carefully before deciding to invest in any regional center or making any direct EB-5 investment.


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No Legal Advice is Intended: This website includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments.

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