EB-5 Glossary: Key Terms and Definitions

EB-5 immigration involves many specialized terms and acronyms. This glossary defines the key terms you will encounter throughout the EB-5 process.

Key EB-5 terms#

Adjustment of Status (AOS): Process of becoming permanent resident while in United States (Form I-485).

At Risk: Capital must be genuinely subject to loss if project fails; core EB-5 requirement.

Capital: Investment funds ($1.05M or $800K) provided to project.

Conditional Permanent Resident: Temporary status during first 2 years of green card; requires I-829 to remove conditions.

Direct Job: Jobs created directly by project operations (not indirect/induced).

EB-5: Employment Based Fifth Preference immigration category for immigrant investors.

Escrow: Third-party account holding investor capital until conditions are met.

Form I-485: Application to Register Permanent Residence or Adjust Status.

Form I-526E: Immigrant Petition by Entrepreneur (EB-5 main petition form).

Form I-829: Petition by Entrepreneur to Remove Conditions on Permanent Resident Status.

Form I-90: Application to Replace Permanent Resident Card (green card renewal).

Form I-131: Application for Travel Document (advance parole, reentry permit).

USCIS: United States Citizenship and Immigration Services.

Job creation terms#

Induced Job: Job created from economic activity generated by worker spending.

Indirect Job: Job created in supply chain serving project.

Job Unit: Single full-time position lasting 2+ years.

TEA: Targeted Employment Area (rural or high unemployment designation).

NCE: New Commercial Enterprise created for EB-5 project.

IMPLAN: Economic impact modeling software used for job calculations.

Investment and financial terms#

At-Risk Capital: See "At Risk."

Basis: Investor's initial capital invested; used for capital gains calculation.

Capital Return: Process of returning investor capital after project completes.

Capital Appreciation: Increase in property value beyond initial investment.

Debt to Equity Ratio: Proportion of debt financing to equity financing.

FIRPTA: Foreign Investment in Real Property Tax Act; withholding tax on property sales.

Loan to Value Ratio: Debt amount as percentage of property value.

Mezzanine Financing: Subordinated debt between first mortgage and equity.

Net Operating Income (NOI): Property revenue minus operating expenses.

Preferred Return: Priority distribution to investors before other payouts.

Redeployment: Reinvesting recovered capital in new project.

Return on Investment (ROI): Profit divided by initial investment; expressed as percentage.

Regional center and project terms#

Developer: Person or company developing the project.

Project Manager: Individual responsible for daily project operations.

Private Placement Memorandum (PPM): Offering document describing investment to investors.

Regional Center: USCIS designated entity overseeing EB-5 investments.

Subscription Agreement: Contract between investor and regional center defining investment terms.

Immigration process terms#

Concurrent Filing: Filing I-526E and I-485 applications simultaneously.

Consular Processing: Interview at US consulate abroad (vs. adjustment of status).

Derivative: Spouse or children included in petition.

Green Card: Permanent resident card; valid 10 years.

Immigration Court: Court system handling removal/deportation proceedings.

Immigrant Visa: Visa for permanent residence.

Priority Date: Filing date determining place in visa queue.

Provisional Waiver: Advance approval for visa processing complications.

Removal Proceedings: Immigration court process determining deportability.

Visa Bulletin: Monthly publication by State Department showing visa availability.

Visa Interview: Interview with consular officer or USCIS before approval.

Compliance and regulatory terms#

Compliance Review: USCIS examination of regional center operations.

Designation: USCIS approval allowing center to oversee EB-5 investments.

Due Diligence: Investigation and verification before investment.

Good Moral Character: Ethical/legal standard for immigration eligibility.

Integrity Fund: Capital set aside by regional center for fraud protection.

Misrepresentation: False statements in immigration application.

Regulatory Compliance: Following all laws and agency regulations.

Timeline terms#

I-526E Processing: Time from filing to approval (typically 18 to 36 months).

I-485 Processing: Time from filing to interview/approval.

Conditional Period: Two year period of conditional permanent resident status.

Visa Availability: When priority date becomes current and visa can be used.

Green Card Timeline: Complete timeline from investment to permanent residency.

Tax terms#

Alternative Minimum Tax (AMT): Additional tax for high income taxpayers.

Basis Carryover: Original investment basis used for tax calculations.

Capital Gains Tax: Tax on profit from property/investment sale.

Depreciation: Tax deduction for property deterioration over time.

Self Employment Tax: Social Security and Medicare taxes for self employed individuals.

Source of Funds: Documentation proving capital source is legal and legitimate.

Tax Treaty: International agreement reducing double taxation between countries.

General immigration terms#

Accredited Investor: Person/entity meeting financial qualification standards.

Derivative Beneficiary: Family member benefiting from primary immigrant's petition.

Expedited Processing: Faster than standard USCIS processing timeline.

Front Load Costs: Expenses paid upfront vs. over time.

Inadmissibility: Condition preventing immigration to United States.

Naturalization: Process of becoming US citizen from permanent resident.

Permanent Resident: Person with green card and indefinite right to stay.

Removal: Deportation or formal removal from United States.

Visa Quota: Limited number of visas available in category.

Visa Retrogression: Visa date moving backward (fewer visas available).

Document and form terms#

Affidavit of Support (I-864): Sponsor commitment to support immigrant financially.

Birth Certificate: Official documentation of birth.

Police Certificate: Official record of criminal history (or lack thereof).

Passport: Official travel document from home country.

Receipt Notice: USCIS acknowledgment of application filing.

Request for Evidence (RFE): USCIS request for additional documentation.

Transcript: Official school/university record.

Translation Certification: Certified translation of foreign language documents.

Regional center specific terms#

Administrative Fee: Annual fee charged by regional center; typically 0.5% to 2%.

Capital Deployment: Release and use of investor capital in project.

Compliance Officer: Regional center employee ensuring regulatory compliance.

Fund Manager: Professional managing investment capital.

Investor Relations: Department handling investor communications.

Final thoughts#

This glossary covers key EB-5 terms you will encounter. Bookmark this page for quick reference throughout your EB-5 journey.

For more detail, consult the USCIS website for official definitions, immigration law firm glossaries, industry associations for technical terms, or your immigration attorney for clarification.

Understanding terminology helps you communicate with professionals and read documents more effectively during the EB-5 process.