The H-1B visa is popular in immigration program allowing many to gain status in the U.S. through their employer. While there are many other options to obtain a visa, an H1-B allows skilled labor to be sponsored by a company to work and live in the country.

However, it is not always a smooth process.

Critics of the program argue that it is a convoluted process that suppresses wages and can lead to the exploitation of foreign employees. There are also concerns about program abuse, the quality of the workforce, and its confusing process on obtaining status.

Although an H-1B visa may seem attractive as a fast way to move to the United States, it’s a temporary visa with extensive limitations.

Many are left to consider an alternative path especially if they can afford it.

The EB-5 Immigrant Investor Program has become an attractive alternative to the H-1B program for graduates and international investors with the financial capital to make the minimum $800,000 investment.

Those seeking to move to the United States with their family find the EB-5 visa the most time- and cost-effective solution. It offers permanent residency with a path to U.S. citizenship for foreign nationals seeking a second passport or dual citizenship.

We will break down how the H-1B visa compares to the EB-5 visa program and why transitioning to an EB-5 visa might be the best option to fast track permanent status.

Why More International Students are Choosing EB-5 Visas

Typically, the H-1B visa has been the go-to choice for students in the United States on an F-1 student visa to study at university. However, extensive limitations to the H-1B visa make an EB-5 visa more attractive. Suppose you’re an international student seeking to remain in the United States indefinitely. In that case, an EB-5 visa is the best way to obtain permanent residency with a route to U.S. citizenship and wider career opportunities.

Here are four reasons why international students are switching from H-1B to EB-5 visas:

Permanent Green Card

The main drawback of an H-1B visa is that it only enables the applicant to reside in the United States for up to three years, with extensions typically allowed for no more than six years. By comparison, the EB-5 visa provides permanent residency. Applicants start with a two-year conditional green card after their I-526 application is approved.

After these two years, an EB-5 visa holder can use a Form I-829 petition to remove the conditions of their residency to obtain a permanent green card. Although the processing time will vary depending on the investor’s country of origin, the rise of concurrent filing and introduction of reserved visas means an EB-5 visa is often processed faster than a H-1B application.

Sponsorships

One of the challenges of a H-1B visa is that applicants are required to have an employer sponsor their visa. The visa is then tied to that employer, which can limit job opportunities and career development. H-1B visa holders are unable to freely move between industries or companies as a result.

By comparison, an EB-5 visa gives the individual the freedom to work anywhere with no employer sponsorship requirement. EB-5 visa holders can start their company, work as freelancers, and switch employers freely.

Work and Travel Authorization

H-1B visas are restricted, requiring applicants to live in the state where their sponsorship employer has provided a job. By comparison, an EB-5 visa holder has work and travel authorization to move freely throughout the U.S. An EB-5 visa holder can work, study, and live anywhere in the United States as a U.S. resident and benefit from the same rights and opportunities as other residents.

Competition for H-1B Visas

There is a ton competition for H-1B visas, with the program being extremely oversubscribed. Only an estimated 1 in 11 applicants are successful, with these stats being even lower for applicants who work in non-STEM industries, crazy right? There has been an enormous backlog in H-1B, and this is a valuable solution to have the smartest minds stay here.

America has an innovation problem. The H-1B visa backlog is making it worse.

While there are technically fewer EB-5 investor visas left, they can provide a faster route for applicants, especially those from low-demand countries. Reserved and set-aside visas provide one of the best options for applicants from high-demand countries to reduce their wait time with priority processing by choosing a rural project or one in an area of high unemployment.

EB-5 Immigrant Investor Program

If you’re interested in pursuing EB-5 visa over its H-1B counterpart, you should fully understand the requirements involved.

The EB-5 Program offers residency through investment with a required minimum investment of $800,000 for targeted employment areas (TEA) or $1,050,000 for non-TEA areas. Investors can choose between a direct investment into a new commercial enterprise (NCE) or working with a regional center.

The foreign national’s investment must create at least 10 full-time jobs sustained for a minimum of two years. Most EB-5 investors choose to work with a regional center as it allows for a hands-off approach to investment management. Regional centers also benefit from indirect and induced jobs that count towards the job creation requirement.

A regional center project is more likely to meet the requirements of the EB-5 program, as long as you have done your due diligence when choosing the project.

The EB-5 program provides individuals with a permanent green card for themselves and direct family members with a path to U.S. citizenship.

Can H-1B Visa Holders Also Apply for an EB-5 Visa?

Individuals with a valid H-1B visa can submit multiple applications to the United States Citizenship and Immigration Services (USCIS).

 H-1B visa holders can apply for an EB-5 while they’re working in the United States without it impacting their existing H-1B visa.

Individuals can maintain their H-1B status while waiting for their EB-5 petition to be approved.

Although the H-1B visa is technically a non-immigrant visa type, individuals can enter on a non-immigrant visa and pursue an immigrant visa at a later stage.

By comparison, a tourist visa – another form of non-immigrant visa – does not allow for this dual intent.

Converting from a H-1B to an EB-5 Visa

If you’re currently in the US with an H-1B visa, you can transition to an EB-5 visa using the steps described below.

We recommend working with an immigration attorney to navigate the process of converting a H-1B visa to an EB-5 visa.

Your EB-5 application will have no impact on your existing H-1B visa. If your I-526 petition is not approved, you can reference your I-140 petition that is attached to your H-1B visa.

Some individuals choose to explore the EB-5 Visa Process as a backup for their H-1B status. More importantly, if they decide to live in the U.S. long-term or want to change jobs.

An EB-5 visa provides significantly more flexibility and freedom than the H-1B visa.

A H-1B visa holder who wants to transition to an EB-5 visa must qualify as an accredited investor.

This requires that they earn $200,000 in an individual capacity for two consecutive years with similar income expected for the current year or a combined income of $300,000 with a spouse under the same terms.

Alternatively, an H-1B visa holder and their spouse can have a net worth of $1 million, excluding their primary residence.

If you are not an accredited investor, you can still utilize the EB-5 program with a regional center program project. This is where an Eb-5 Lawyer comes handy.

Using Concurrent Filing to Go From an H-1B to an EB-5 Visa Holder

This part is the most intriguing and beneficial if you are currently on H-1B. The process from H1-B to an EB-5 has become easier by the recent addition of concurrent filing.  

H-1B holders can apply for their Adjustment of Status Form I-485 simultaneously with their 1-526 petition to reduce wait time.

The implementation of RIA since 2022 has made the switch from an H-1B to an EB-5 visa significantly more straightforward.

This an a perfect alternative for applicants from high-demand countries who are working in the U.S. under an H-1B visa. 

Because of concurrent filing and reserved visas, this has made the EB-5 Program even more appealing than its H-1B counterpart. Feeling stuck on an H1-b is a very normal feeling these days.

Individuals with an H-1B visa can continue to live and work in the United States as they wait for their I-526.

While your application is processed, you can wait to receive a conditional green card.

This provides all of the flexibility and security to make you feel safe in your current situation.

Summary & Takeaways

The EB-5 Program is no longer being seen as just an option for individuals outside of the United States. This program has become a popular option for foreign nationals already in the USA on H-1B.

Working with an Eb-5 lawyer is the best way to navigate the process if you’re already in the U.S. on another visa. Recent reforms, including concurrent filing, have made it easier for other visa holders to transition to the EB-5 program.

If you are on an H-1B or are considering it but want to explore EB-5 you can start the process by sharing your info for us to connect you with a professional.