EB5 Visas vs H1B Visas: What are the key differences?
The H1B non-immigrant professional work visa is very popular among foreign born STEM graduates, in particular. And there are literally hundreds of thousands of H1B Visa holders in the US.
H1B Visa holders in the US have to be sponsored for a Green Card by their US employers. And the positions they apply for are typically well remunerated, highly specialized roles. The key drawback to the H1B Visa route is that due to per-country quotas the processing backlogs tend to stretch for years, leading to a lot of limbo for applicants and their dependent families.
H1B Visa holders in the US face a range of potential challenges pertaining to their legal status in the country. For starters, H1B Visas are subject to an annual cap, and the demand often exceeds the supply, which triggers to a lottery based allocation scenario.
In this process, many applicants are not selected for approval, leading to uncertainty about their immigration status.
Another key drawback of the H1B Visa category is that you’re very dependent on your relationship with your sponsoring employer (and on that relationship staying healthy). Changing jobs as an H1B visa holder tends to be challenging, as any new employer needs to be willing to sponsor your H-1B transfer.
So if you get fired from your job with an H1B sponsoring entity, you can prepare for an exceptionally stressful time.
In addition, obtaining H1B extensions beyond the initial three-year or six-year limit can be difficult. In addition, H1B holders frequently face challenges related to family separation if their dependents (spouse and children) are not on H4 visas.
H1B Visa processing delays can also affect applicants’ travel plans and reentry into the US, which frequently leads to disruptions in work and personal life.
During the pandemic years, H1B Visa applications were also increasingly subject to USCIS Requests for Evidence (RFEs) and denials, making the Green Card application process all the more challenging and uncertain.
It is for these reasons that high-earning H1B applicants from countries like China, India, South Korea and Vietnam have increasingly been switching to the EB5 Visa Program with a view to make their transition to life – and a Green Card – in the US faster, smoother, and more predictable.
Let’s take a look at some of the key difference between the EB5 and the H1B Visa Programs as things stand going into 2024:
| Key Considerations | EB5 Visa | H1B Visa |
|---|---|---|
| Visa Type | Immigrant Investor Visa | Temporary Work Visa |
| Sponsorship Entity | Self-sponsorship, via a Direct EB5 Investment, or through a Regional Center Investment | Employer-sponsored |
| Immigrant Intent | Settlement (Permanent Residency) | Temporary Employment (Longer Term Temporary Residency) |
| Investment requirement | $800,000 (Rural/High-Unemployment/Public Infrastructure), OR $1,050,000 (Urban/Standard Projects) | N/A |
| US Job Offer Required? | No | Yes |
| Duration | Leads to Permanent Residency | Typically valid for 3-6 years, with possibility of extension |
| Annual visa quotas | Yes (10,000 per year) | Yes (65,000 per year, plus 20,000 additional visas for those holding a Master’s Degree or higher). |
| Family Member Eligibility | Spouse and kids under 21 (at the time of the EB5 visa application) eligible for Green Cards. | Spouse and children may be eligible for H-4 visas |
| Visa Lottery Component? | No | Yes (if demand exceeds the available visa cap) |
| Work Restrictions | No restriction on employment or job location. (And as an EB5 Visa applicant, you don’t need to work at all.) | Employer specific visa |
| Restricted Nations | None / All Eligible | None / All Eligible |
| Labour Certification Required | No | Yes |
| Minimum in-country presence requirements | EB5 Visa holders must live in the U.S. for a significant portion of the year. | H1B Visa holders must maintain a US residence while on this visa. |