The H-1B visa is a temporary employment nonimmigrant visa with the only routes to permanent residency being the EB-2 and EB-3 categories. EB-2 and EB-3 are characterized by substantial backlogs for foreign nationals from certain countries. The EB-5 immigrant investor program offers an alternative path to circumvent these substantial backlogs. This path is predictable and 2026 marks the perfect time for prospective investors to get involved with the EB-5 program.
The H-1B and EB-5 programs serve different purposes within the U.S. immigration system and have fundamentally different structures. The H-1B is a nonimmigrant visa that permits U.S. employers to hire foreign workers in specialty occupations. The program has an annual statutory cap of 85,000 visas and in recent years, demand has far surpassed this limit which has led U.S. citizenship and immigration services (USCIS) to use a lottery system to select eligible applicants.
The legal status of H-1B workers in the U.S. is contingent upon their employment with their sponsoring company. A change in employment (such as the recent spur of tech layoffs) affects the H-1B holder and their family's ability to remain in the United States.
The EB-5 program is an immigrant visa category that provides a direct path to a green card based on an individual's investment in the U.S. economy. The standard investment is $1,050,000 in non-targeted employment areas and $800,000 in targeted employment areas. The EB-5 program is self-sponsored which removes employer dependence and allows the individual to regain their freedom.
H-1B Limitations and Instability
The H-1B visa is a common vehicle for skilled professionals to work in the U.S. but the visa has inherent limitations that create instability for the visa holder and places them in a position of inferiority and dependence to their employer.
One of the most profound examples of uncertainty is when the relationship with the employer ends whether by layoff, termination or company closure, a 60-day countdown to find new employment starts immediately. For a foreign national who has spent over a decade waiting on the EB-2 or EB-3 backlog this can feel like a rug pull.
The financial profile of many tech workers on H-1B visas align well with the EB-5 requirements. H-1B tech workers typically have years of high salaries, accumulated RSU vesting events, and have purchased real estate that they can take lines of credit against to fund the EB-5 investment. The $800,000 investment threshold is not a significant barrier for someone who has spent a decade earning a senior software engineer or product manager's salary at a major tech company. The flexibility in sourcing funds makes the EB-5 program even more accessible. A tech professional who owns a home in the Bay Area or Seattle may have hundreds of thousands of dollars in home equity available through a HELOC. Other H-1Bs may be able to borrow against a portfolio of vested RSUs or publicly traded companies and some may have family members willing to provide a documented gift.
The H-1B Salary Disadvantage
Research consistently shows that H-1B workers earn less than their American counterparts for the same job. A 2026 study by the National Bureau of Economic research found that H-1B workers earn approximately 16% less than Americans. This wage gap is not a reflection of skill but a reflection of the structural limitations inherent to the H-1B program. The visa is tied to a specific employer and H-1B holders have limited job mobility and therefore diminished bargaining power in salary negotiations. This dependency creates a situation of employer leverage where companies can legally pay H-1B workers below market wages and face no repercussions. This practice is prevalent among major tech companies which abuse the program to hire highly skilled workers at a significant discount.
Indirect and Direct Benefits of the EB-5 Program
Green Card Backlogs for EB Categories
The most relevant challenge for H-1B workers seeking permanent residency is the extensive backlog in the EB-2 and EB-3 categories. These backlogs are a result of high demand exceeding the per-country annual limits on immigrant visas. For individuals from countries with many applicants (like India and China), the wait for a green card typically extends for more than a decade. According to USCIS, the estimated wait time for a new EB-2 applicant from India could be between 12 and 18 years and be as high as 100+ years. During this prolonged waiting period the H-1B worker and their family will remain in a temporary status with substantial career progression and salary limit restrictions based on their H-1B status. This long-term uncertainty is a primary driver for the exponential increase in interest for the EB-5 program. Check your estimated wait with our Visa Backlog Checker.
Career Freedom and Entrepreneurship
Permanent Residency allows the H-1B holder to pursue any career path as well as entrepreneurship. Green card holders can start their own businesses, work as independent contractors or move between companies and industries without restriction. This is a game changer for many tech workers who have entrepreneurial ambitions but are constrained by their H-1B status.
Family Stability
The EB-5 visa provides a stable future for the entire family. The investor's spouse and unmarried children under 21 are eligible for green cards which allows them to live, work and study in the United States unencumbered. Spouses can obtain work authorization and children can benefit from lower in-state tuition at public universities, enhanced career and study opportunities and greater financial aid. Use our Tuition Calculator to see the savings.
Stability During Periods of Economic Uncertainty
The concurrent filing provision introduced to the EB-5 program by the Reform and Integrity Act provides a critical safety net. If an H-1B worker is laid off after filing their I-526E and I-485 petitions they can remain in the United States under the pending adjustment of status and use their EAD to seek new employment. This removes the pressure of the 60-day grace period and the risk of being forced to leave the country.
The EB-5 Program Overview as an Alternative Path
The EB-5 program represents the ultimate bypass to the backlog for the employment-based visas and allows the investor to self-petition directly for an immigrant visa based on capital investment. The central requirement of the EB-5 program is an investment in a new commercial enterprise. The investor's capital must be considered at risk meaning it is subject to both potential gain and loss. The investor must also provide documentation proving that the investment funds were obtained from a lawful source. For an H-1B worker the acceptable sources can include accumulated salary, personal savings, proceeds from the sale of assets, secured loans and gifts from friends or family.
Most EB-5 investors choose to pool their funds in projects managed by USCIS designated regional centers. A regional center is an entity that facilitates EB-5 investments within a defined geographic area. Learn more about choosing a regional center.
What is the EB-5 Application Process for U.S.-Based Applicants?
For H-1B workers already residing in the United States, the EB-5 process can be initiated while they maintain their current nonimmigrant status. The general steps to initiating the EB-5 process are as follows:
• 1. Investment: The investor conducts due diligence to select a suitable EB-5 project and then makes the required capital investment into the new commercial enterprise
• 2. Filing of Form I-526E: The investor files Form I-526E, Immigrant Petition by RC Investor, with USCIS. This petition documents the investment and provides a detailed business plan showing how the job creation requirement will be met
• 3. Concurrent Filing of Form I-485 (Adjustment of Status): The EB-5 Reform and Integrity Act of 2022 introduced a significant benefit for U.S.-based applicants which is the ability to file Form I-485 Application to Register Permanent Residence or Adjustment of Status concurrently with the I-526E petition. This allows the applicant and their dependent family members to remain in the United States in a period of authorized stay while the EB-5 petition is adjudicated
• 4. Interim Benefits: EAD / AP: When filing Form I-485 (Adjustment of Status) applicants can also file Form I-765 for an Employment Authorization Document and Form I-131 for an Advance Parole travel document. Once approved, the EAD grants unrestricted work authorization which frees the individual from dependence on an H-1B sponsor. The Advance Parole allows for international travel without abandoning the Adjustment of Status application
• 5. Petition by Investor to Remove Conditions: Within the 90-day period before the two-year conditional green card expires, the investor must file Form I-829 to remove the conditions on their residency. Upon approval of the I-829, the investor, their spouse and their children receive permanent green cards
Conclusion
The EB-5 immigrant investor program remains a viable and direct path to permanent residency in the United States for those who have the necessary capital. The EB-5 offers a degree of control and flexibility not found in any other visa categories. The recent reforms allowing for concurrent filing have made the program even more attractive to individuals already in the United States. While the initial investment is significant, the long-term returns make it a compelling proposition. Grandfathering deadlines for the current program are on September 30, 2026, and investors are encouraged to act now to receive the benefits of the current program before the grandfathering provision expires. Track the deadline with our Grandfathering Countdown Timer.
Ready to take the next step toward U.S. permanent residency? With the September 30, 2026 grandfathering deadline approaching now is the time to secure your place in the current EB-5 program before the window closes.
Contact Student EB5 today to explore your options and begin your journey to a green card.
References
• U.S. Bureau of Labor Statistics. (2025, May 20). *Foreign-Born Workers: Labor Force Characteristics — 2024.* https://www.bls.gov/news.release/pdf/forbrn.pdf
• U.S. Citizenship and Immigration Services. (2023, March 1). *EB-5 Immigrant Investor Program.* https://www.uscis.gov/working-in-the-united-states/permanent-workers/eb-5-immigrant-investor-program
• Kroft, K., Norwich, I., Notowidigdo, M., & Tino, S. (2026, January 20). *Closed Visas Trap Temporary Foreign Workers in Worse Jobs.* Becker Friedman Institute, University of Chicago. https://bfi.uchicago.edu/insights/closed-visas-trap-temporary-foreign-workers-in-worse-jobs/
• Wang, X. (2021). *U.S. Permanent Residency, Job Mobility, and Earnings.* Journal of Labor Economics, 39(3). https://www.journals.uchicago.edu/doi/10.1086/709689
• U.S. Citizenship and Immigration Services. (2025, July 8). *Green Card for Immigrant Investors.* https://www.uscis.gov/green-card/green-card-eligibility/green-card-for-immigrant-investors
• Kandel, W. A. (2020, March 26). *The Employment-Based Immigration Backlog* (CRS Report R46291). Congressional Research Service. https://www.congress.gov/crs_external_products/R/PDF/R46291/R46291.1.pdf
The opinions expressed on this website are solely those of the author/presenter. The information provided is for general informational purposes only and should not be considered professional or legal advice. Student EB5 and its contributors do not endorse or take responsibility for any actions taken based on the information presented here. Visitors are strongly advised to consult with qualified immigration attorneys and financial advisors before making any EB-5 investment decisions or taking any actions based on the content on this website.
