EB-5 Glossary: 75+ Terms Every Investor Should Know

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

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, re-entry permit).

USCIS: United States Citizenship and Immigration Services.

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.

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.

Developer: Person or company developing the project.

Project Manager: Individual responsible for day-to-day 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.

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 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.

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

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

Conditional Period: 2-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.

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/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.

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).

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.

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

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.

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

Additional resources:

• USCIS website for official definitions
• Immigration law firms' glossaries for detailed explanations
• Industry associations for technical terms
• Your immigration attorney for terminology clarification

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