Although both involve "investment," EB-1C multinational executive immigration and EB-5 investor immigration are concepts that many clients often confuse. There are many fundamental differences between the two regarding time, investment amount, capital requirements, and employment requirements. Understanding the differences between these two, as well as the requirements for the applicant, is crucial when choosing an immigration category and project type. Early preparation and thorough understanding are essential to avoid unnecessary complications in the later stages of the application.
Differences in Immigration Categories
EB-1C first requires a qualified domestic company (multinational enterprise) and a U.S. branch; the two companies must have a parent-subsidiary or affiliate relationship. Furthermore, the U.S. entity must have been in existence for at least one year to be a qualified EB-1C petitioner. The beneficiary of an EB-1C application is a senior manager or executive who will be transferred to work at the relevant U.S. entity, while the petitioner is the U.S. entity of the multinational corporation.
EB-5 requires the applicant to invest in a business in the United States or in a Regional Center. At the same time, there are many forms of investment available to the applicant in the U.S. There is no need to own a domestic parent company or a U.S. subsidiary. In other words, as long as you have the investment funds stipulated by the USCIS and the investment project creates jobs, you are eligible for EB-5 immigration.
USCIS Review Focus
In EB-1C, USCIS will focus on the structure of the multinational corporation and the operations of the U.S. entity acting as the petitioner. The key to a successful EB-1C application lies in the U.S. entity's ability to demonstrate that it has established a senior management or executive position within its organizational structure for the beneficiary to fill. Furthermore, the U.S. entity must be actively operating and generating corresponding revenue; the operational status of the U.S. branch is a primary point of review when determining whether the requirements for green card approval are met.
In an EB-5 application, USCIS mainly focuses on the feasibility of the project, the creation of 10 jobs for U.S. workers, and the lawful source of funds. We will mention the critical nature of this EB-5 source of funds documentation below.
Proof of Source of Funds
In the adjudication of an EB-1C application, USCIS typically only focuses on the initial investment and capital flow between the overseas company and the U.S. entity. However, USCIS does not impose any rigid requirements on the amount of this investment, nor does it have strict requirements for the source of the investment funds.
In contrast, the purpose of EB-5 is to attract overseas investment to create U.S. jobs. Depending on the Regional Center, the required investment amount is between $500,000 and $1 million. Furthermore, the applicant must submit relevant valid evidence to prove the lawful source of funds, and the review of funds is quite strict; it is recommended to find an experienced team to prepare the documentation.
Applicant Position Requirements
In EB-1C, the level of the position must reach the height of a management organization. USCIS will consider these job responsibilities along with the U.S. company structure, operational status, etc., during the review.
EB-5 has no requirements for the applicant regarding their position, and there are no requirements for education, skills, or background.
Which Application Process is Faster
EB-5 investor immigration may take relatively longer and involve more uncertainties because it requires passing a re-examination after two years of conditional permanent residence to obtain a permanent green card. EB-5 currently has a waiting period of about 5 years (and the wait is getting longer), while EB-1C has no waiting period. Since EB-1C does not have a conditional green card stage, a permanent green card can generally be obtained in about two years. The United States provides 10,000 spots for overseas EB-5 investors each year, of which 3,000 are for Regional Center spots; EB-1C has 40,000 spots per year. In terms of time alone, EB-1C is much faster than EB-5. If a child is approaching the age of 21 and cannot wait for the EB-5 waiting period, we still recommend that clients take the EB-1C fast track.
Conditional Green Card Applies Only to EB-5
Once an EB-1C is approved, the beneficiary and their immediate family members can apply for adjustment of status if they are within the United States, or apply for a visa through consular processing if they are outside the United States. When they receive the visa to enter the United States or the adjustment of status is approved, they will receive an unconditional permanent green card.
In an EB-5 application, there is one more stage—the conditional green card—than in EB-1C. Once the EB-5 application is approved, the applicant can apply for adjustment of status; after approval, the applicant receives a 2-year conditional green card. The conditional green card has the exact same rights as a permanent green card during its 2-year validity period. One year and nine months after receiving the conditional green card, the applicant must submit relevant evidence along with Form I-829 to prove that they have met all requirements of the EB-5 investor immigration program regarding the establishment of a business and the employment of U.S. workers. If the I-829 is successfully adjudicated, the applicant and their immediate family members can obtain a permanent green card.
What is the Approval Rate
One of the questions that friends on the immigration path care about most is the difference in approval rates between these two types of immigration.
For EB-1C, based on processing experience, because EB-1C has a high degree of uncertainty and there is no rigid standard for judging the company's operational status, it can be challenging. However, a large brand or a U.S. enterprise that is actually operating generally does not find it difficult to meet such standards. Therefore, if the applicant themselves does not have extensive experience in establishing and operating a company in the United States, acquiring a third-party entity that is already successfully operating is also a time-saving and reliable method.
For EB-5, to put it bluntly, it depends on the project. The quality of the project is directly related to whether the green card can be approved and how long it will take. The feasibility and professionalism of the project plan, as well as the guarantee of job creation, are all closely related to whether the green card is approved. Therefore, when choosing an EB-5 investment project, applicants must keep their eyes open.