Regional centers are USCIS-approved entities that promote economic growth through foreign investment. They act as intermediaries between EB-5 projects and foreign investors seeking to immigrate to the U.S. Investors favor these projects because they offer flexibility in job creation and promise more safety through transparency and compliance.

In these projects, investors buy equity in a new commercial enterprise (NCE). The NCE then loans funds to or buys equity in a job-creating entity (JCE), which is typically the development project creating EB-5-compliant jobs.

Throughout the EB-5 process, regional centers take on various responsibilities. Among these are controlling the flow of EB-5 funds, managing loans or equity investments, and keeping investors informed with updates. Regional centers also ensure projects comply with offering documents, maintain thorough records, and oversee fund releases from escrow.

If a regional center isn’t independent, there is an increased risk of conflicts of interest between the regional center and the project developer. When selecting EB-5 projects, investors should avoid risky options to ensure their investment is safer and more compliant with regulations.

This article will cover potential conflicts of interest between EB-5 regional centers and developers, providing actionable tips on how EB-5 investors can avoid such conflicts.

Common Conflicts of Interest in EB-5 Investments

Sometimes, regional centers managing EB-5 funds are owned or connected to project developers, and they may even share the same name. This creates a conflict of interest, as the developer would then act as both borrower and lender.

Projects with affiliated regional centers may promise high returns with low risk, but investors should be cautious. Higher returns often mean higher risk. The safest projects usually offer lower returns.

Before selecting a project to invest in, foreign nationals should check for any conflicts of interest, especially between the regional center and developer. While USCIS allows some conflicts in specific cases, these must be disclosed and waived. It’s crucial for investors to have their own legal counsel review any project to evaluate risks before investing.

EB-5 success relies on the investment creating 10 new jobs and meeting other requirements. So, the project’s financial success directly affects the investor’s immigration success. Conflicts of interest prioritizing developers over investors can compromise immigrant petitions, especially if the market weakens.

If a project fails, conflicts of interest between regional centers and developers can severely harm investors. A regional center tied to the developer is likely to favor its own interests over those of EB-5 investors.

When regional centers managing EB-5 funds are independent from project developers, they avoid conflicts of interest. Independent regional centers are more likely to prioritize their EB-5 investors’ interests. For example, an independent regional center may require a developer to sell other assets to repay investors on time. Additionally, they can negotiate on behalf of EB-5 investors to ensure the required job creation occurs, protecting both the financial and immigration outcomes for the investors.

The Impact of the EB-5 Reform and Integrity Act of 2022

On March 15, 2022, the EB-5 Reform and Integrity Act (RIA) introduced new rules to ensure transparency in managing EB-5 funds. The RIA requires regional centers to prepare annual reports of their EB-5 capital for each NCE and mandates more frequent audits by USCIS.

USCIS can fine non-compliant regional centers, and even terminate them. Regional centers with conflicts of interest are at higher risk of non-compliance, which can directly affect investors.

Finding Safe EB-5 Projects With EB5AN

EB-5 investors should carefully review project documents for any disclosed financial relationships between a project’s regional center and its developer. Financial ties, joint ownership, or affiliations between a project’s regional center and developer create conflicts of interest and should be avoided. It would also be advisable to steer clear of a project if its documents fail to disclose obvious conflicts of interest. On the other hand, investors should look for long-term successful collaborations between independent entities for reduced risk.

EB5AN’s regional centers are completely independent of the developers in charge of our first-rate projects with a 100% USCIS project approval rate to date. With over a decade of experience in the industry, our expert team has helped more than 2,300 families from 60 countries relocate to the United States as lawful permanent residents.

To find out more about how we can help you and your family achieve financial and immigration success through a low-risk EB-5 investment, please book a free call with our team today.

In today’s economic landscape, EB-5 investors must be more careful than ever when selecting projects to invest in.

There are many factors to think of when choosing an EB-5 investment or project as making an EB-5 investment doesn’t fully guarantee that the investor will be approved for a Green Card. One of the factors to think of is whether the project has secured financing or not.

Especially with the rise in interest rates and the real estate market facing challenges, it’s important to choose EB-5 projects that have already secured financing.

This article will delve into the reasons why fully financed projects are the safest for EB-5 investors, and provide guidance on how to identify and evaluate such opportunities.

The Current Economic Climate and Its Impact on EB-5 Investments

The U.S. economy has been on a ride in recent years, with the Federal Reserve taking aggressive steps to fight inflation by raising interest rates. While these measures are intended to stabilize the economy, they also have significant consequences for businesses and investors.

Higher interest rates make borrowing more expensive for real estate developers, who often rely on a combination of equity, EB-5 funds, and loans to finance their projects. As the cost of borrowing increases, some projects may become financially unfeasible, leading to delays, scaling back, or even cancellation.

Moreover, as banks become more careful about lending in the face of economic uncertainty, securing financing for new real estate projects becomes increasingly challenging. Major banks like Wells Fargo, JP Morgan, and Bank of America have already tightened their lending practices or paused new loans altogether.

The Risks of Investing in EB-5 Projects Without Secured Financing

For EB-5 investors, there could be consequences for investing in a project that hasn’t secured financing. If a project is unable to get the necessary loans or raise enough capital, it may fail to create the required number of jobs or even fail altogether. This not only risks the investor’s chances of obtaining a Green Card but also puts their invested capital at risk.

Also, projects that rely heavily on EB-5 funds to fill financing gaps are inherently riskier. If such a project fails to attract the anticipated number of EB-5 investors, it may not have the financial resources to move forward, leaving the investors who have already committed their funds in a precarious position.

How to Identify EB-5 Projects with Secured Financing

To manage these risks, EB-5 investors should focus on projects that have already secured financing from known sources. The best EB-5 projects will have a senior loan from a major bank that is fully funded and in good standing.

A senior loan is the first to be repaid if the project encounters financial difficulties, and banks are known for their due diligence when approving such loans. If a project has secured a senior loan, it’s a strong sign that the bank has confidence in the project’s financial viability and potential for success.

When evaluating EB-5 projects, investors should also consider the ratio of EB-5 funds to other sources of financing. While EB-5 capital can play a valuable role in the financing structure, it shouldn’t be the only source of funding. Projects that are overly dependent on EB-5 investment may be less stable and more vulnerable to market fluctuations.

Assessing the Asset Class and Its Resilience in a Downturn

In addition to evaluating a project’s financing structure, EB-5 investors should also consider the type of real estate being developed. Some asset classes, such as luxury condominiums or hotels, may be more exposed to economic downturns as consumer spending on high-end goods and travel tends to decrease during recessions.

On the other hand, projects focused on multifamily housing, affordable housing, or senior living facilities may be more stable. These asset types cater to basic human needs and often experience stable demand even during economic turbulence.

Conducting Due Diligence and Seeking Professional Guidance

It’s important when selecting a low-risk EB-5 project to do strict due diligence. Investors should ask for detailed information about a project’s financing, including proof of senior loans and their current standing.

If a project sponsor can’t provide clear, written answers to these inquiries, it may be a warning sign that the project is not as secure as it appears.

To make better EB-5 investment decisions, many investors choose to work with experienced EB-5 regional centers. Reputable regional center teams have a track record of identifying projects with solid financials and strong potential for job creation, and guiding investors through the EB-5 process.

Partnering with a trusted regional center can provide an additional layer of security and peace of mind for EB-5 investors, particularly during times of economic uncertainty.

Investing With EB5AN

While the current economic climate may present challenges for EB-5 investors, it’s still possible to find safe investment opportunities that offer a clear path to a Green Card and a brighter future in the United States.

EB-5 investors who take the time to understand the financing structure of potential projects, ask important questions, and seek guidance from experienced professionals will be better equipped to weather economic storms and achieve their immigration and investment goals.

As a leader in the EB-5 investment industry, EB5AN has established itself as a trusted regional center operator. With a proven track record of assisting over 2,300 investors in identifying low-risk projects, EB5AN has demonstrated its commitment to maximizing investors’ chances of achieving their immigration and financial goals.

To learn more about how EB5AN can help you discover the most secure EB-5 investment opportunities tailored to your needs, we invite you to schedule a free consultation with our EB-5 experts.

Foreign nationals looking to secure a better future for themselves and their family may not always be high-net-worth individuals. In fact, you don’t need to have millions in your bank account to obtain your Green Card through the EB-5 program.

However, obtaining your permanent residence through this program is a critical process, so you must understand the requirements and the best route to take.

In this article, we will explain the EB-5 program requirements, and provide you with valid funding options you can use for your investment.

Understanding EB-5 Visa Requirements

The EB-5 Immigrant Investor Program got launched in 1990 by the U.S. government to stimulate the economy while providing foreign nationals with an opportunity to get Green Cards. It offers successful applicants, their spouses, and children under the age of 21 a legal pathway to permanent residence in the U.S.

Below are the main requirements of this program.

Capital Investment Requirement

Capital, as defined by the United States Citizenship and Immigration (USCIS), includes cash as well as any real, personal, or mixed tangible assets that the foreign national owns and controls. This capital will be valued at a fair U.S. dollar market rate.

Under the EB-5 program, a $1,050,000 minimum investment is required. If the investment is made in either a rural location or one with high unemployment rates, collectively known as targeted employment areas (TEAs), this threshold can be lowered to $800,000.

However, this minimum investment does not need to come from a single , and there are ways to finance your EB-5 investment according to your financial goals and capabilities, which we will cover below.

Job Creation Requirement

Establishing full-time job opportunities for American workers lies at the core of the EB-5 visa program. Every EB-5 investment must result in the development of 10 or more full-time jobs for eligible workers.

EB-5 investments in regional center-sponsored projects can include indirect and induced jobs in this job count, which makes it easier to fulfill this requirement.

Source of Funds Requirement

A crucial requirement for EB-5 investors is that their capital must be both traceable and legally sourced. Failing to meet this condition can lead to the denial of an investor’s petition. Therefore, it is essential for investors to understand the legitimate sources of capital they can use for their EB-5 investment.

One of the most common sources for EB-5 investment funds is an investor’s regular income, such as their salary from employment or business profits. While this is a practical way to save for an EB-5 investment, primary earnings often aren’t enough to meet the required amount, leading investors to look for other sources to gather the necessary funds.

How Can You Invest in an EB-5 Visa if You’re Not a Millionaire?

Apart from savings from their main income, investors have other sources to meet the minimum investment requirement for the EB-5 program. EB-5 applicants can combine funds from gifts, inheritance, loans, property sales, and market investments, as long as they can provide the necessary documentation to prove the legal origin of the funds when filing their Form I-526E.

Here are some of the most common ones:

Gifted Funds

Foreign investors can use gifted funds, whether from family members or friends, to fulfill the EB-5 requirements. If an investor is considering this route, they need to have proper documentation of the gift. For one, the donor of the gift has to show that the funds come from a legal source. Additionally, the investor must show that it was a gift and not a loan that they are obligated to pay back.

It is common practice to establish the relationship between the donor and the investor, including when the funds were gifted and bank statements showing the receipt of the funds. USCIS may also require an affidavit attesting to the gifted funds.

Loans

You may get a loan from a bank, a lending organization, a financial institution, or even from close friends or relatives. In essence, any legitimate source may provide the loan. Yet, keep in mind that EB-5 regulations stipulate that the money must be at risk.

One common way for EB-5 investors to get money is through loans backed by their assets. It’s possible to use borrowed money for an EB-5 investment, but it can make proving the legality of the funds tricky.

For instance, if an investor gets a loan from a bank and uses an asset as collateral, they must show they legally own the asset and bought it with legal funds. This process gets even more complicated if the loan is from an individual. In that case, the investor must prove they own the asset and bought it legally, and the lender must show that the money they lent comes from legal sources.

Unsecured loans can also be used for EB-5 investments, provided the source of the funds and supporting evidence are documented.

The loan contract must detail the terms, including the interest rate and repayment deadline. Loan repayments must be traceable and follow market standards.

Inheritance

Applicants are allowed to use inheritance as a source of funds for an EB-5 visa, but only if the inheritance is legitimate and well-documented. When using inheritance as an EB-5 investment, you must submit documentation proving the deceased’s legal acquisition of the funds. This may include bank statements, tax returns, or other financial records.

You must also provide documents proving you received the inheritance, such as wills and/or documents from an estate administrator.

Existing Property

EB-5 investors often use money from selling a property to fund their investment. Whether the property was inherited or bought, they must prove it was legally obtained. If the investor bought the property, they need to show how they got the money to buy it.

This is a great option for investors who bought property years ago and may not have substantial liquid assets right now. They can sell the property at its current market value and use that money for their EB-5 investment.

To do this, the investor must provide all sale and purchase documents, including bank statements showing the money transferred to their account. They also need to include the ownership certificate and tax records to prove the property meets legal requirements.

Partial Investments

USCIS allows applicants to start the EB-5 with a partial investment and commit to investing the rest within a set timeframe.

This option is helpful for investors who don’t have all the funds upfront, giving them time and flexibility to arrange the remaining amount. It lets them secure an early priority date while allowing more time to liquidate their assets at a better rate.

Investors interested in this partial investment option need to find projects and regional centers that offer this flexibility.

Funds You Cannot Use for an EB-5 Visa

USCIS does not permit investment funding from the following sources:

• • Funds earned from illegal activities such as gambling.
  • Loans secured by non-personal assets.
  • Undocumented funds
  • Funds obtained through questionable transactions may raise red flags for money laundering.

  What Is the Accredited Investor Requirement?

  

  An accredited investor is a person who satisfies certain financial requirements established by regulatory organizations such as the Securities and Exchange Commission.

  EB-5 regional center program investors have to meet one of these two requirements:

  • • The investor must own $1 million, whether individually or jointly with a spouse, which does not include the value of their primary residence.
    • The investor must have earned at least $200,000 (or $300,000 when joined with a spouse) per year for the past two years and honestly anticipate continuing to make the same amount of money in the current year.

  With the second option, an investor can still invest in a regional center project by meeting the net annual income requirement, even if their net worth is not $1 million.

  Get Your Green Card With EB5AN

  

  Prospective EB-5 applicants have various options to finance their investment, whether through personal income, property sales, gifts, loans, partial investments, or other routes. However, ensuring all requirements are met can be complex. This is why it’s best to work with industry professionals who can provide guidance and support throughout the process, helping to ensure a smooth and successful EB-5 journey.

  EB5AN has helped more than 2,300 families from 60 countries relocate to the United States as lawful permanent residents. Our expert team has more than a decade of experience, and offers clients first-rate, low-risk EB-5 regional center projects with a 100% USCIS project approval rate to date.

  To find out about the investment options that suit you best, please schedule a free consultation with our team today.

The number of Canadians living in the United States has reached its highest in a decade, according to data from the U.S. Census Bureau. Approximately 797,000 Canadian-born individuals were living in the United States in 2019, according to data from the Migration Policy Institute. By 2021, this number had increased to approximately 885,000. Over 126,000 Canadians immigrated to the U.S. in 2022—a 70% increase from a decade before.

This increase in Canadian migration to the U.S. can be tied to several factors. One of them is the strong American economy, with its active job market and higher salaries, attracting Canadians who seek better career and investment opportunities.

Also, lifestyle preferences and availability of a wider range of amenities, entertainment, and recreational activities in the U.S. have attracted some Canadians. Politics, climate, and the cost of housing are considered to be important factors, too.

Data also shows that the EB-5 Immigrant Investor Program is a popular visa option for Canadian citizens seeking permanent residency in the United States.

In fiscal year (FY) 2023, 124 EB-5 visas were issued to Canadian investors, followed by 17 EB-5 visas issued in FY 2024 so far (through consular processing only). This makes Canada the 14th top country for EB-5 visa issuance so far in FY 2024, without taking into account any adjustment of status data.

In this article, we will explain why the EB-5 visa has become a popular route for Canadians to pursue the U.S. Green Card, and what Canadians who want to get an EB-5 visa should keep in mind.

What Attracts Canadians to the EB-5 Visa?

Established in 1990 with the aim of boosting economic growth, the EB-5 program allows foreign investors and their immediate family members (spouse and unmarried children under 21) to obtain Green Cards through a required minimum investment amount of $800,000 (in a targeted employment area) or $1,050,000 (in other regions) that creates at least 10 full-time jobs for U.S. workers.

The EB-5 visa offers several attractive benefits that make it a good option for Canadians looking to invest in the United States:

Permanent U.S. Residency (Green Card)

The primary attraction of the EB-5 investment visa is the lawful permanent residence (a Green Card) for foreign investors and their immediate family members. This gives them the ability to live, work, and study anywhere in the United States without restrictions.

Fast-Track to U.S. Citizenship

EB-5 investors and their families are eligible to apply for U.S. citizenship after holding a Green Card for five years. This fast pathway to obtain citizenship makes the EB-5 visa unique among other U.S. visas.

Educational Opportunities

The dependent children of EB-5 investors can attend U.S. universities and colleges and pay the same tuition rates as U.S. citizens, which provides access to world-class higher education at more affordable costs.

Business Opportunities

The EB-5 visa allows Canadian investors to freely start or invest in businesses across the United States, opening doors to new markets and investment prospects.

Tax Benefits

After years of strong growth, the Canadian economy has recently slowed down. Similar to other countries, Canada has faced high inflation, which has caused interest rates to rise, leading to slower GDP growth and reduced demand for goods and services.

Americans typically pay lower taxes than Canadians. For instance, in 2021, Canada collected $14,493 per capita in taxes, while the United States collected $11,365 per capita.

Canada’s increasing tax rates are also a cause for concern for its local entrepreneurs and investors.

EB-5 Application Process for Canadians

To qualify for the EB-5 visa, Canadian investors must follow these basic steps:

1. Choose a low-risk EB-5 project and make the required investment in a new commercial enterprise.
2. File Form I-526E, Immigrant Petition by Regional Center Investor, with the United States Citizenship and Immigration Services (USCIS).
3. Upon I-526E approval, apply for conditional permanent residency (Green Card) through consular processing if residing in Canada. If you’re already in the U.S. in valid nonimmigrant status, you may qualify for EB-5 concurrent filing to apply for adjustment of status while submitting I-526E.
4. Approximately 21-24 months after receiving the conditional Green Card, file Form I-829, Petition by Investor to Remove Conditions on Permanent Resident Status, to have the conditions on your Green Card removed and obtain permanent residency.

This is just a basic outline of the entire process, which can vary greatly depending on each investor’s specific circumstances. It is highly recommended to work with an experienced immigration attorney at each step of the process.

The processing times for each step are different, and the overall timeframe can depend on the details of the case. Applicants can check the USCIS processing times page for current estimates. EB-5 investors from Canada can significantly reduce their wait times by investing in rural targeted employment area projects.

Challenges for Canadian EB-5 Investors

While the EB-5 visa offers many benefits, Canadian investors should also know about the potential risks and challenges associated with the program:

Investment Risks

As with any investment, there are inherent financial risks involved in EB-5 projects. Investors must carefully evaluate the viability and potential returns on the investment, as well as the reputation of the EB-5 regional center or project developer.

Immigration Risks

Meeting the EB-5 program requirements does not guarantee the approval of the investor’s Green Card application. Factors such as job creation and source of funds documentation can impact the success of the application.

Fraud Risks

Canadian EB-5 applicants must conduct thorough due diligence to ensure the legitimacy of any EB-5 investment opportunity. If possible, they should review other Canadian investors’ testimonials and speak directly to regional center principals.

Processing Times

While the EB-5 visa application process for Canadian investors is relatively faster compared to many other nationalities, the overall wait time can still take more than a year from the time of investment to getting permanent residency.

The First Step From Canada to the United States

The EB-5 visa remains a popular route for Canadian investors to access new business opportunities and obtain a U.S. Green Card for themselves and their families.

Prospective applicants should stay informed about the latest EB-5 updates to ensure a smooth investment and immigration process. Working with experienced EB-5 professionals can help Canadian investors navigate the program and maximize its benefits.

EB5AN, a top EB-5 firm, has several low-risk EB-5 projects for Canadian investors. These are some of the safest EB-5 projects on the market, with benefits like job creation guarantees, fast I-526E processing, and fully secured funding that doesn’t rely only on EB-5 investment capital.

Canadian nationals interested in the EB-5 program can book a free consultation with EB5AN to see if they qualify and to discuss the details of their specific circumstances.

Many foreign nationals are discouraged from choosing the EB-5 visa program because they believe it is complicated. However, they overlook the flexible nature of the EB-5 program. Compared to other visa options, it does not focus on the specific qualifications or exceptional skills of the applicants.

EB-5 is a straightforward program that focuses on two main criteria: capital investment and job creation. Applicants must invest at least $800,000 in a targeted employment area (TEA) project, or $1,050,000 in projects in other regions. This investment must create at least 10 full-time positions for qualifying U.S. workers before applicants will be eligible for an EB-5 Green Card.

Interested candidates can apply for the EB-5 visa either from outside the U.S. through consular processing or inside the U.S. through adjustment of status. In either case, certain foreign nationals tend to benefit from the EB-5 visa route more commonly than others. In this article, we look at those specific groups and explore how they can get their Green Cards through an EB-5 investment.

Foreign Nationals Who Are Ideal Candidates for the EB-5 Program

The flexible nature of the EB-5 program makes it possible for aspiring applicants to structure their investments in ways that fit their financial and immigration goals.

Furthermore, the EB-5 Immigrant Investor Program is not based on familial relations or skills. Most foreign nationals can apply for and obtain their Green Card through this pathway, as long as they fulfill all requirements.

Below, we will look into some groups of foreign nationals for whom the EB-5 program can be a great option, regardless of their educational or professional backgrounds.

Nationals of Countries With High Demand for Employment-Based Visas

Due to a high demand for Green Cards, nationals of some countries face additional difficulties throughout their immigration journeys. Chinese and Indian nationals typically experience prolonged backlogs in employment-based visas. This is often due to the large number of highly skilled professionals that apply for visas, vastly exceeding the countries’ quotas. As a result, many visa applicants—particularly in EB-1, EB-2 and EB-3 categories—are frustrated by the waiting times and are often forced to give up on their dreams of obtaining a Green Card.

The introduction of the reserved visa categories by the EB-5 Reform and Integrity Act of 2022 (RIA) makes the EB-5 visa pathway an excellent alternative for foreign nationals from backlogged countries. By setting aside visas for rural and high-unemployment TEAs, the program ensures a more equitable distribution of visas. This reduces wait times and even introduces a priority processing opportunity in the case of rural investments. The set-aside EB-5 categories have no backlogs at the time of writing.

International Students Who Want to Stay in the U.S. Long-Term

The F-1 visa offers a pathway for international students to study in the U.S. However, this visa is granted for the duration of the student’s academic program (plus additional extensions in some cases.) However, F-1 is not an immigrant visa and students who wish to remain in the U.S. after graduation need to change their status to another visa.

The EB-5 visa offers F-1 student visa holders an opportunity to remain in the U.S. post-graduation without requiring a job offer from an employer. It is one of the fastest routes for international students to achieve permanent residency in the United States.

On December 20, 2023, USCIS revised its regulations for student visas. These visas require students to plan to leave the U.S. after finishing their studies. The new rules clarify that F and M student visa holders can apply for an immigrant visa without breaking their visa terms, as long as they have a home in another country. With this change and the concurrent filing option provided by RIA, F-1 students can apply for EB-5 visas while still studying. They can also apply for work authorization, a travel permit, and adjustment of status at the same time, enjoying Green Card benefits while their applications are processed.

E-2 Visa Holders

The E-2 visa permits investors who have made substantial investments to enter the U.S. to manage their businesses, if their country of origin has a treaty with the U.S. This visa option is suitable for foreign nationals who are only interested in residing in the U.S. temporarily. It does not directly lead to permanent residence since the E-2 visa is a non-immigrant visa. Instead, eligible investors extend their stay by renewing their visas.

Investors seeking better stability should change to an immigrant visa category, such as the EB-5 visa for immigrant investors.

Transitioning from an E-2 visa to an EB-5 visa is feasible because the funds invested in the E-2 enterprise can be counted toward the $800,000 minimum investment needed for the EB-5 visa. Additionally, if the business already employs full-time U.S. workers, these positions can fulfill the EB-5 visa’s job creation requirements.

In most cases, the E-2 investor already resides in the U.S., so they may file their Form I-485 to adjust their status concurrently with their EB-5 application.

Individuals With No Sponsorship Options

Many U.S. visa pathways require sponsorship from either family members or employers. The EB-5 visa is one of the few options available to foreign nationals who have no sponsorship opportunities.

The H-1B visa is a common sponsored visa type, and it requires applicants to first be selected in a visa lottery and then maintain employment to stay in the U.S. With the recent tech layoffs affecting many H-1B visa holders, the EB-5 visa can offer a fast-track to a U.S. Green Card and eventual citizenship, all without work or travel limitations or the need for sponsorship.

For a real-life example of how the right EB-5 investment can impact your Green Card process, watch how Milan from India invested with EB5AN in April 2023 and had his I-526E approved.

Why Choose the EB-5 Immigrant Investor Program?

The following section highlights the advantages of the EB-5 program over some other types of popular U.S. visas.

Direct Path to Obtaining a Green Card

The EB-5 visa provides a direct path to obtaining a Green Card, unlike many employment-based categories. It does not require visa extensions or renewals, and once an investor removes conditions on their Green Card, they face no restrictions.

The fact that the visa requires no sponsorship is also beneficial for nationals of countries with high demand, where finding an employer sponsor tends to be challenging.

Family Inclusion

The EB-5 visa allows the primary applicant to include their spouse and unmarried children under 21 in the application. This family inclusivity is particularly beneficial for applicants who want to provide their children with better access to high-quality education and healthcare. Spouses who hold EB-5 Green Cards can also live, work, and study in the U.S. without restrictions, unlike some other popular visa categories like E-2 and H-1B.

Potential Return on Investment

While the primary goal for many EB-5 investors is to secure a U.S. Green Card, the investment itself holds the potential for a return. Depending on the terms of the project’s PPM and the success of the investment, EB-5 investors can receive their entire capital back in a relatively short time, potentially with profits.

Avoidance of Professional and Academic Barriers

The EB-5 visa does not require extraordinary abilities, talent, specific professional qualifications, or higher education degrees that are needed for other visa types like the EB-1 or EB-2. This makes it accessible to a broader range of applicants, including those who may not meet the stringent requirements of other employment-based visas.

Furthermore, unlike the E-2 visa, EB-5 eligibility does not depend on the applicant’s nationality.

Get Started on Your EB-5 Journey With EB5AN

While EB-5 visas are accessible to applicants who have fulfilled the given criteria, it is common for investors to overlook certain requirements, miss dates, or fail to provide correct documents. Such mistakes can lead to serious setbacks and ultimately harm the application. This is why investors should consult experienced EB-5 professionals to provide them with guidance and support throughout the EB-5 process.

If you are considering the EB-5 pathway to obtaining a Green Card, schedule a free consultation, and our expert team will be happy to help you get started.

A Green Card is an essential document for non-citizens who want to live and work in the U.S. It grants the holder permanent residency status, providing a variety of benefits. These include rights and opportunities that contribute to economic, social, and familial stability. Additionally, holding a Green Card has paved the way for many foreign nationals to gain full citizenship.

The means of obtaining a Green Card can be broadly categorized into two: sponsored and unsponsored. Unsponsored pathways are often more appealing because they give foreign nationals greater autonomy, flexibility, and control over their immigration process.

Unsponsored Green Card options offer independence from sponsors, which can be hard to find and arrange in the first place. These pathways allow foreign nationals to plan their immigration journeys according to their own personal and professional goals.

This article will summarize the different unsponsored pathways to obtaining a U.S. Green Card.

Five Pathways to Get a Green Card Without Sponsorship

Unsponsored Green Card pathways are ideal for foreign nationals who do not have job offers or family members to fund their immigration to the U.S. Below are five common options.

EB-1A Extraordinary Ability

The EB-1A visa, also known as the “Extraordinary Ability” Green Card, is one of the first preference employment-based immigration categories. It benefits a very select group of individuals who have extraordinary ability in their field, including the sciences, arts, education, business, or athletics.

EB-1A applicants must demonstrate that they meet at least three out of 10 criteria set by the United States Citizenship and Immigration Services (USCIS) or provide evidence of a single extraordinary achievement, like prizes such as a Pulitzer, Oscar, or Olympic medal. Once EB-1A applicants confirm they qualify and gather proof of their extraordinary ability, they can start their visa process by filing Form I-140.

The EB-1A category allows applicants to self-petition and has shorter processing times than other employment-based categories. However, it is highly competitive, and only a small percentage of applicants qualify.

EB-2 National Interest Waiver

Normally, obtaining an EB-2 visa requires a job offer from a U.S. employer and a labor certification from the Department of Labor. This type of visa is granted when no qualified U.S. workers are available for the job.

However, the EB-2 National Interest Waiver (NIW) is a special category that allows eligible applicants to waive these conditions. That is, successful applicants can request that the job offer and labor certification requirements be set aside because their admission to the U.S. would greatly benefit the nation.

To qualify for the NIW, applicants must have an advanced degree (a master’s degree or higher) or a bachelor’s degree with at least five years of experience in their field. If the applicant does not have an advanced degree, they can qualify based on exceptional ability in the sciences, arts, or business. In addition to these requirements, the USCIS evaluates NIW petitions based on these three core criteria.

NIW candidates also file Form I-140 to begin their visa processing. They should gather important documentation, as well, such as a detailed petition letter explaining how they meet the NIW criteria and other supporting documents.

While NIW candidates do not need to undergo the complex labor certification process, proving that their work is of national interest can be difficult, and the documentation requirements are strict.

Diversity Visa Lottery

The Diversity Visa (DV) Lottery is a U.S. government program designed to promote immigration diversity. As many as 55,000 diversity visas are available each year to individuals from countries with low immigration rates to the United States.

The lottery entry period typically opens once a year, usually in the fall. Applicants apply through the official diversity visa lottery website, where they provide personal information, including name, date of birth, gender, country of eligibility, and contact information.

The U.S. Department of State randomly selects winners and publishes them on the official diversity visa lottery website, usually in May of the following year. If selected, applicants will need to use their confirmation number to verify their selection.

Selected applicants need to complete and submit the DS-260 application form. They will then undergo a medical examination and attend an interview at a U.S. embassy. At that stage, applicants must have all required documents, including the interview appointment letter, DS-260 confirmation page, and medical examination results.

If the U.S. Department of State approves the visa application, the candidate will receive a Green Card, granting them permanent residence in the U.S.

EB-4 Special Immigrant

The EB-4 visa is an employment-based fourth preference category designed for “special immigrants.” It covers a variety of specific groups who do not fit into the more traditional employment-based visa categories. Eligible groups for the EB-4 visa include:

Religious Workers

This includes ministers and non-ministers in religious occupations. Applicants must have been active members of a religious group for at least two years before applying.

Special Immigrant Juveniles (SIJ)

Minors in the U.S. who have been abused, neglected, or abandoned and are under juvenile court supervision.

Certain Broadcasters

Employees of the U.S. International Broadcasting Bureau of the Broadcasting Board of Governors or grantees.

Certain Physicians

This includes certain foreign physicians who have been practicing medicine in the U.S. for many years.

Members of the U.S. Armed Forces

Certain foreign nationals who have served in the U.S. Armed Forces for at least 12 years.

Panama Canal Zone Employees

Employees who worked in the Panama Canal Zone in certain capacities on or before September 30, 1979.

Others

• Employees of the U.S. government who are abroad alongside their family members.
• Retired officers or employees of a G-4 international organization or NATO-6 civilian employees and their family members.
• Non-citizens who have supplied information about a criminal organization or enterprise or a terrorist organization, enterprise, or operation.

EB-4 applicants begin their visa processing by filing Form I-360. They can also file the Petition for Amerasian, Widow(er), or Special Immigrant. After USCIS reviews and approves the immigration case, the applicant can file Form I-485 for adjustment of status before eventually receiving their Green Card.

EB-5 Immigrant Investor Program

The EB-5 Immigrant Investor Program is an immigration program that aims to stimulate U.S. economic growth by creating jobs and attracting foreign investment. It provides an opportunity for foreigners to get Green Cards by investing in a new commercial enterprise (NCE) in the U.S.

To qualify for an EB-5 visa, applicants must invest at least $1,050,000—or $800,000 in a targeted employment area (TEA). The investment must also create at least ten full-time jobs for U.S. workers.

There are two types of EB-5 investments: direct investments and regional center investments. That is, investors may either invest directly in an NCE or through regional centers designated by USCIS. Regional center investments are more popular because they have relatively simpler requirements and offer the flexibility of not having to manage the business daily.

The EB-5 visa process starts with Form I-526E. Once this is approved, investors and their immediate family members (spouse and unmarried children under 21) may apply for conditional permanent residency. If they are already in the U.S., eligible candidates can adjust their status by filing Form I-485 concurrently with their Form I-526E. However, those outside the country will have to go through consular processing.

After investors have maintained their investment for a minimum of two years and created the required jobs, they will be eligible to file Form I-829 to remove conditions on permanent resident status. If approved, the investor and their family members become unconditional permanent residents. They can apply for citizenship by naturalization after five years of getting their conditional Green Card.

Depending on their nationality and investment category, EB-5 applicants may face challenges like long processing times. However, new applicants investing in rural EB-5 projects can benefit from reserved visa quotas and priority processing, allowing them to get their Green Cards much faster than usual.

Other Options and Special Cases

For those looking to get a Green Card without family or job sponsorship, there are several special options available. Asylum and refugee status can lead to a Green Card for those who face persecution in their home country due to their race, religion, nationality, social group, or political views. After one year of being granted asylum or refugee status, they can apply for permanent resident status.

Victims of certain crimes can apply for a U visa if they have suffered serious abuse and are helping law enforcement. Similarly, the T visa is for victims of human trafficking who assist law enforcement. After three years on a U or T visa, they can apply for a Green Card.

The Violence Against Women Act (VAWA) allows abused spouses, children, or parents of U.S. citizens or permanent residents to self-petition for a Green Card without the abuser’s knowledge. This helps protect them and their independence during the process.

Secure an EB-5 Visa With EB5AN

Choosing unsponsored pathways to become permanent residents in the U.S. offers foreign nationals greater autonomy. However, this independence can come with challenges, such as extensive documentation requirements, high eligibility standards, and various legal complexities.

For those particularly interested in the EB-5 visa pathway, EB5AN can provide the support you need. EB5AN is a leading EB-5 firm with decades of experience in the industry. We have successfully guided over 2,300 families from 60 countries through the EB-5 process.

To learn how you can achieve permanent residency in the U.S. through the EB-5 program, book a free consultation with our expert team today.

The U.S. tech sector, which includes a large number of H-1B visa holders, has been volatile in recent years. In 2022, about 150,000 white-collar employees were laid off and many job offers were revoked. Tens of thousands of tech workers lost their jobs during the first few months of 2024.

Many tech workers come to the United States on H-1B visas. Between 2019 and 2022, more than 45,000 H-1B foreign workers were hired. Indian nationals represent nearly three-fourths of that number.

If you’re one of them, it makes sense to plan ahead. Continuing rounds of H1B layoffs are likely to affect you or people you know. Unfortunately, you cannot count on job security or new employment with many tech companies. It’s not always easy or quick to find a new employer in this job market.

In this article, we will explain what you can do if you’re affected by an H-1B layoff.

What Happens If H-1B Workers Are Laid Off?

The H-1B is a popular and temporary nonimmigrant visa. In 2023, more than 780,000 foreign nationals submitted petitions. Visa holders must have employment sponsors.

Such workers may be required to leave the United States and return to their home country with little notice if they are laid off and cannot find a new employer quickly.

If an H-1B worker is fired, the following may eventually happen if they do not secure new employment:

• They lose their non-immigrant status and cannot remain in the United States.
• Any family members on dependent H-4 visas will also have to leave the country.
• Any family members working on an employment authorization document will no longer be able to work in the United States.

But they can avoid this if they act fast.

The 60-Day Grace Period

Before 2017, H-1B holders had no extra time to find new employment after being fired. They were required to leave the United States immediately after being let go.

Fortunately for everyone now on an H-1B visa, a revised USCIS policy went into effect in January 2017 that gives foreign workers additional time and flexibility.

An H-1B visa holder now gets a grace period that allows them to look for a new job or adjust their visa status. Workers are eligible for this benefit regardless of whether they are fired or voluntarily leave their jobs.

The duration of this grace period is the shorter of either:

• 60 consecutive calendar days.
• Until the end of their authorized validity period.

If you are an H-1B holder who has not found a new employer, you must depart the United States at the end of this time frame. You will no longer have a valid status.

Failure to comply may mean being deported or facing additional difficulties if you attempt to re-enter the United States at a later date. Staying for six months or longer past an authorized period means you cannot come back to the country for at least three years.

The grace period begins the day after your last paid day from your job and if your I-94 is still valid. You can keep your authorized status by doing one of the following during that time frame:

1. Filing for a change of nonimmigrant status.
2. Filing for adjustment of status.
3. Filing for a “compelling circumstances” employment authorization document.
4. Changing your employer.

Here are a few considerations to keep in mind when you apply:

1. Keep track of exactly when your 60 consecutive calendar days will be up from the last day of employment at your job.
2. Ask your H-1B sponsor to not revoke your H-1B visa. Explain this will make it easier to transfer your H-1B status to a new position.
3. Review the USCIS policy guidance mentioned above.

Let’s take a closer look at each of the options to maintain a legal status in the United States.

Potential Actions to Take During Grace Periods

An H-1B holder who wishes to remain in the United States can pursue one of several courses of action during the 60-day grace period.

Find a New H-1B Role

If the holder finds new employment during the grace period, the new employer files a petition on the employee’s behalf to extend their stay in the United States. The employee would thus keep their nonimmigrant status.

Each foreign worker is eligible for one 60-day grace period for each employer’s authorized validity period. With each new employer petition approval, another grace period is possible.

So, if you are fired by Employer A, you may be approved for maintaining status for 60 days to conduct a job search or change status. If you then begin employment with Employer B and have a new petition validity period, you may qualify for another 60-day grace period under Employer B if you are subsequently terminated.

Find Employment Under a Different Visa Type

Another option is to pursue another nonimmigrant visa category that allows you to continue working in the United States. Here are a few examples of such programs:

1. TN: Applies to Canadian or Mexican nationals, who can work in the United States in professions identified under the North American Free Trade Agreement.
2. E-2: Applies to nationals of countries that have a treaty of commerce and navigation with the United States. A qualifying investment in a U.S. company is required.
3. O-1: Applies to those with extraordinary ability in art, athletics, business, education, or science.
4. L-1: Applies to employees of multinational companies who have specialized knowledge or occupy a management or executive position.

You must file during the grace period to be eligible for work under another visa category.

Request a Change of Nonimmigrant Status

If your priority date is current, another option is to adjust your immigration status.

For example, an H-1B holder can become an international student via the F-1 program, as long as they participate in an approved program of study. F-1 students are eligible for limited employment opportunities.

An alternative is to change status to become a B-1 or B-2 visitor and travel around the United States. B-1 and B-2 visitors cannot legally work in the country, but they may search for new employment and participate in interviews while in a B-1 or B-2 status. They must change this status before beginning work.

A worker may also become a dependent of their spouse under the H-4 or L-2 programs and remain in the country.

An adjustment of status application must be delivered to the United States Citizenship and Immigration Services (USCIS) before your last day on the job. A late petition means that you will probably be denied.

File an Application for a Compelling Circumstances Employment Authorization

The Compelling Circumstances Employment Authorization Document is another possibility for laid-off workers who have an approved I-140.

To be approved, you must show that you face major hardship. Consult USCIS guidance and an experienced immigration attorney for a better sense of whether you qualify and whether this is the right approach for you.

File an Immigrant Visa Application (Adjustment of Status)

If you have a strong background in science, technology, engineering, or math, you may wish to apply for a Green Card under the EB-1 program.

However, for many applicants (especially those who have the required capital), applying via the EB-5 program is the better course of action. It’s a fast and reliable pathway to lawful permanent resident status in the United States.

Live Permanently in the United States With an EB-5 Visa

A Green Card holder has the right to live and work anywhere in the United States regardless of their employment status. In addition, an EB-5 visa comes with the following major benefits.

EB-5 Visa Benefits

• Lawful permanent resident status in the United States for yourself and eligible dependent family members (spouse and unmarried children under the age of 21).
• No restrictions on employment with private sector U.S. companies (but restrictions on employment with the federal government may exist).
• Access to U.S. healthcare, insurance, retirement, and other benefits.
• Freedom to travel outside of the United States periodically.
• No requirement to reapply for lawful permanent residence status.

Applying for an EB-5 visa is a desirable choice for many Indian nationals on H-1B visas and their families.

EB-5 Program Requirements

USCIS administers this program. Completing the EB-5 application process comes with many professional and personal benefits, as long as the applicant fulfills the program’s requirements. These include:

• Invest the correct amount in a new commercial enterprise: ordinarily $1,050,000, or $800,000 for a project located in a targeted employment area.
• Choose either a direct or regional center investment.
• Ensure the investment creates at least 10 full-time jobs for U.S. workers.
• Submit the required documents for each family member (including marriage certificate, birth certificates, etc.) and respond to any questions or requests for evidence from USCIS fully and accurately.

Even though it is not an explicit requirement, working with an experienced immigration lawyer is highly recommended to help you navigate the complexities of the EB-5 process.

How to Apply for an EB-5 Visa

EB-5 investors must complete four main steps to receive lawful permanent resident status for themselves and their family members:

• Find the right EB-5 project.
• Invest the required capital.
• File Form I-485 and Form I-526E.
• Obtain conditional permanent resident status.
• File Form I-829 and remove conditions on lawful permanent resident status.

This is a broad overview, and the process can get complicated. However, it’s much easier if you work with an expert team.

Invest in Low-Risk Projects With EB5AN

We at EB5AN have a strong track record of helping H-1B holders from India (and many other countries) to obtain Green Cards for themselves and other family members as part of the EB-5 visa process. Rahul’s experience is one of our many success stories.

EB5AN has helped more than 2,300 families from 60 countries relocate to the United States as lawful permanent residents. Our expert team has more than a decade of experience, and offers clients first-rate, low-risk EB-5 regional center projects with a 100% USCIS project approval rate to date.

Please book a free call with us today to learn more

Thousands of foreign nationals apply to work in the United States under employment-based visa categories every year.

The most popular of these is the H-1B visa program. About three out of every four H-1B holders are Indian nationals. In many cases, they wish to bring their immediate family members along to preserve the family relationship. Each qualified relative receives an H-1B dependent visa, which is also called an H-4 visa.

However, there are H-1B and H-4 visa limits that can cause problems for those seeking to build a new life in the United States. Better options are available for some individuals.

In this article, we will explore the advantages and disadvantages of the H-1B, H-4, and EB-5 visas.

What Is an H-1B Visa?

The H-1B is a temporary nonimmigrant visa that lasts for three years and is renewable for another three years. Most H-1B visa holders must live outside the United States for at least one year after this six-year period.

While the H-1B renewal process can extend the applicant’s stay to six years, recent updates have introduced a pilot program allowing certain H-1B visa holders to renew domestically without leaving the U.S.​ This program, however, is still very limited and comes with stringent requirements.

H-1B visa holders must have employment sponsors and may face issues with underpayment. It is not easy for those on H-1B visas to change jobs. They also face a great deal of uncertainty and could be required to leave the United States with little notice if they are laid off.

What Is an H-1B Dependent Visa?

The H-1B dependent visa is more commonly called the H-4 visa. Qualified family members of an H-1B visa holder may apply for it by providing evidence of the following:

• Legal status if residing in the United States.
• Family relationship between the H-4 applicant and H-1B visa holder.
• Employment authorization for the H-1B visa holder to work in the United States.

The H-4 dependent visa presents benefits and challenges similar to those of the H-1B.

Like H-1B visa holders, those who have an H-4 can live and study in the United States. In some situations, they can also work.

However, the validity and conditions of these dependent visas are tied to the status of the H-1B principal visa. If the principal visa holder loses their job, then the H-4 holders will lose their immigration status.

Like H-1B visas, H-4 visas also need to be regularly extended. This can be done using Form I-539, which should be signed by the H-1B holder’s primary dependent (unless that person is a minor child).

When Can H-4 Visa Holders Work in the United States?

Whether H-4 visa holders can request employment authorization and work in the United States depends on the H-1B holder’s status.

If the H-1B nonimmigrant is the principal beneficiary of an approved Form I-140, Immigrant Petition for Alien Worker, then an H-4 dependent spouse may work in the United States. The H-4 holder would apply for an employment authorization document by filing Form I-765, Application for Employment Authorization.

Once approved, the H-4 visa holder will be eligible for many U.S. work opportunities. The employment authorization document will usually expire with the H-4 visa, so they will have to apply for extensions to both documents.

Can H-4 Visa Holders Travel Outside the United States?

H-4 visa holders can still enjoy international travel, but they must have the required documentation and are subject to certain limitations.

Documents Required

To travel abroad, H-4 visa holders should carry the following:

• Visa.
• Valid passport.
• H-4 visa stamp in the passport.

Although not required, an H-4 holder may also wish to carry a letter from the H-1B holder’s employer indicating this person is still employed. Carrying a marriage certificate and copies of utility bills may also help to answer questions from immigration authorities.

It’s generally recommended that an H-4 visa holder not travel when the principal H-1B visa is up for extension or set to expire. This can lead to complications with a pending form.

If you must travel around that time, make sure to travel with Form I-797H Approval Notice as further evidence of the H-1B holder’s status in the country. This will help to avoid problems with the Department of Homeland Security.

If the H-1B visa expires while outside the United States, the holder must apply for and be approved for an extension at a consulate before returning to the country.

Enjoy Greater Freedom With an EB-5 Visa

H-1B and H-4 visa holders are subject to restrictions that do not apply under the EB-5 Immigrant Investor Program. Switching from nonimmigrant status to an EB-5 visa can be the right choice for certain Indian nationals.

The United States Citizenship and Immigration Services (USCIS) administers this program. Completing the EB-5 application process comes with many professional and personal benefits, as long as the applicant fulfills the program’s requirements.

EB-5 Visa Benefits

• Lawful permanent residence in the United States for yourself and qualified dependent family members (spouse and unmarried children under the age of 21).
• Freedom to live and work anywhere in the United States.
• Freedom to travel outside the United States temporarily.
• Access to U.S. healthcare, insurance, retirement, and other benefits.
• No need to keep reapplying for lawful permanent residence status.

EB-5 Eligibility Requirements

• Invest the correct amount in a new commercial enterprise: ordinarily $1,050,000, or $800,000 for a project located in a targeted employment area.
• Choose either a direct or regional center investment.
• Ensure the investment creates at least 10 full-time jobs for U.S. workers.
• Submit the required documents for each family member (including marriage certificate, birth certificate, etc.) and respond to any questions or requests for evidence from USCIS fully and accurately.

Even though it is not an explicit requirement, working with an experienced immigration attorney is highly recommended to help you navigate the complexities of the EB-5 process.

Invest in an EB-5 Project With EB5AN



Many Indian EB-5 investors have worked with the EB5AN team to change from H-1B and H4 nonimmigrant status visas to the EB-5 program, gaining Green Cards for themselves and other family members in the process. For example, listen to Rahul’s story.

Of course, you don’t have to be from India to become another one of our valued clients. We welcome the opportunity to partner with applicants from all over the world.

EB5AN has helped more than 2,300 families from 60 countries relocate to the United States as lawful permanent residents. Our expert team has more than a decade of experience, and offers clients first-rate, low-risk EB-5 regional center projects with a 100% USCIS project approval rate to date.

Please book a free call with us today to find out more.

The EB-5 visa is one of the world’s most popular investor visas. It is a rare gateway for foreigners to gain residency (and eventually citizenship) rights in the world’s biggest economy through investment.

Investing in a regional center project is the most common route to an EB-5 visa—the other is direct investment. As defined by the U.S. Citizenship and Immigration Services (USCIS), “an EB-5 regional center is an economic unit, public or private, in the United States, involved with promoting economic growth.”

When a regional center project is within a targeted employment area (TEA), EB-5 applicants have to invest a minimum of $800,000, rising to $1,050,000 for non-TEA projects.

With such significant investment thresholds, investing in an EB-5 visa regional center project is a big decision that requires careful due diligence. Investors are advised to evaluate the project, developer, and regional center before taking this step. In this article, we will take a look at some due diligence best practices.

Key Factors When Assessing EB-5 Investment Opportunities

USCIS Project Approval

A foundational step is confirming the project has been reviewed and approved by USCIS. The approval showcases the project’s readiness and credibility.

It’s important to note that pre-approval by USCIS does not guarantee future approval of individual petitions, but it can speed up processing times.

Job Creation Potential

The core of the EB-5 program is economic growth through job creation. Each EB-5 investment must create at least 10 full-time jobs for U.S. workers. Look for projects that are likely to exceed this minimum threshold to provide a buffer against any unforeseen issues.

It’s also important to understand how and when jobs will be created. While updated policies can affect this timeframe, it’s best to look for projects that have already started to create jobs at the due diligence stage.

Regional Center Track Record

Evaluating the regional center’s EB-5 history provides valuable insight. Key data points include:

• Number of past projects successfully completed and percentage of EB-5 capital repaid.
• USCIS approval rates for both I-526E and I-829 petitions.
• Any regional center terminations, investor lawsuits, defaults or failures to return capital.

Investors should not just focus on the number of approved projects but also discover the details behind any rejections. A high volume of denials or a pattern of RFEs (Requests for Evidence) from USCIS can be a red flag.

Principals’ Experience and Background

Beyond the regional center, it’s crucial to vet the individual principals, developers, and managers involved in a project. Investigate their professional histories, previous developments, and any legal or financial troubles.

At this stage, investors can consider a few items, such as:

• Successful experience with similar projects and/or EB-5 developments.
• Absence of criminal records, fraud allegations, SEC violations or lawsuits.
• Likelihood of the team remaining intact to manage the project long-term.
• Financial health and capitalization to weather any challenges.

EB-5 can be a long process, and it’s best to have full confidence that the team involved will operate with integrity throughout.

Investment Structure and Terms

EB-5 investment structures can vary widely regarding equity versus loan positions, at-risk requirements, refund provisions, and capital return schedules. Carefully review all documents, private placement memoranda, and subscription agreements.

Key considerations include:

• Whether the total investment will be contributed at once or via deposit and installment.
• Provisions for investment refund if Form I-526E is denied.
• Expected return on investment and whether distributions will be made during the immigration process or only upon maturity.
• Clear exit strategy specifying when and how the investment principal will be repaid after immigration requirements are met.

It’s recommended that investors speak to experienced securities counsel who can explain the investment terms and their rights and risks fully.

Immigration Risk and Redeployment

EB-5 capital must be sustained “at risk” for a minimum of two years. But what happens if the original project is completed or repays the investment early? The investor’s funds must be redeployed into one or more new projects until the required timeframe is completed.

Redeployment policies vary significantly. Some regional centers allow investors to provide input into different projects, while others don’t.

Examine the redeployment terms and the regional center’s track record with past redeployments. Ideally, look for a clear policy stating that redeployment will be into similar projects and allowing investors’ consent.

Get Your Green Card With EB5AN

These factors can provide a framework for evaluating EB-5 regional centers, but navigating the program’s complexities could be challenging for even experienced investors. The most effective approach is to hire an experienced EB-5 immigration attorney to guide you through the due diligence process.

It’s also important for EB-5 investors to stay updated on any policy changes or new laws affecting the program. By keeping up with the industry through reliable sources, EB-5 investors can ensure the regional centers and projects they’re considering meet the latest program requirements.

EB5AN can provide expert guidance through all stages of the EB-5 application process for a straightforward immigration journey. Please book a free one-on-one call with our team to discuss the specifics of your case.

Investors hoping to establish a future in the U.S. may find it difficult to understand the different immigration processes. The United States Citizenship and Immigration Services (USCIS) offers specific pathways to foreign nationals. The E-2 and EB-5 visas are two common options for foreign investors planning to live in the U.S.

While both programs have benefits, they also have different requirements. One such distinction is the issue of proving source-of-funds. Applications often get delayed or denied due to a lack of understanding of these requirements.

In this article, we will provide an overview of the EB-5 and E-2 visas. We’ll also compare the source-of-funds requirements for both pathways.

Immigrant vs. Nonimmigrant Investor Visas

Foreign investors have different options that enable them to live in the U.S. legally. Selecting the right route for you and your family can help you make precise and timely decisions about your immigration goals.

An immigrant investor visa, namely the EB-5 visa, provides a pathway to permanent residency, commonly known as a Green Card. This means that investors and their immediate family members can live and work in the U.S. indefinitely, enjoy most of the rights and benefits of U.S. citizens (except for voting), and eventually apply for citizenship.

On the other hand, a nonimmigrant visa is a type of visa issued to foreign nationals who wish to enter the United States temporarily for a specific purpose, such as tourism, business, study, or temporary work. Unlike immigrant visas, nonimmigrant visas are designed for those who plan to stay for a limited period of time. Visa holders are expected to return to their home country once their visa expires. Among all U.S. nonimmigrant visas—which include tourist visas, student visas, and others—the only investment visa category is the E-2 visa.

Let’s consider these two popular investor visa options below.

EB-5 Immigrant Investor Program

Introduced by the Immigration Act of 1990, the EB-5 Immigrant Investor Program offers foreign nationals who invest in a new commercial enterprise an avenue to obtain a U.S. Green Card. The program’s aim is to boost the U.S. economy by attracting foreign investors and creating jobs for Americans.

EB-5 applicants can either invest $1,050,000, or a reduced rate of $800,000 in a targeted employment area (TEA).

The investor typically submits an application to USCIS using Form I-526E (Immigrant Petition by Regional Center Investor). To approve this petition, USCIS requires documentation of the investment, a business plan, and source-of-funds evidence that shows the capital investment is based on lawful sources—among other requirements and supporting documents. After approval, investors and their eligible families can become conditional Green Card holders and enjoy several benefits. They can later apply to remove the conditions on their Green Cards and become lawful permanent residents of the United States.

E-2 Nonimmigrant Treaty Investor Program

The E-2 visa allows investors to enter and work in the U.S. temporarily. These visas are for nationals of countries that have a treaty of navigation or commerce with the U.S. Unlike the EB-5, the E-2 visa does not have a set minimum investment amount but requires a substantial investment in a U.S. business.

E-2 visa holders can renew their visas indefinitely if they continue to meet the requirements, but this visa does not lead to permanent residency. Foreign investors cannot apply for a Green Card directly through the E-2 visa.

Individuals interested in this visa must submit Form DS-160, the Online Nonimmigrant Visa Application, and the DS-156E (Nonimmigrant Treaty Trader/Investor Application). Applicants must provide other documents such as passports and marriage certificates, as well as business-related paperwork like proof of ownership and a comprehensive business plan.

EB-5 vs. E-2: Comparing the Source-of-Funds Requirements

Both EB-5 and E-2 visa applicants are required to provide proof of lawful source of funds.

EB-5 investors must submit detailed records that trace their investments from the source to the point of investment in the U.S. There are several sources of funds accepted, including earnings, gifts, loans, property sales, inheritances, and personal savings. However, both the source and the path of the investment funds need to be thoroughly documented.

In contrast, E-2 visas do not require as much source-of-funds information. E-2 application documents must show that the money will go to the E-2 business and that it was obtained lawfully, but the path of funds and supporting evidence are less scrutinized.

While E-2 applicants do not need to conduct the same thorough tracing and paperwork, consular officers or adjudicators must still guarantee that the funds are legitimately obtained and adequate for the business entity.

Given that the EB-5 visa leads to permanent residency, it’s only natural that its source-of-funds processes are more closely scrutinized compared to the nonimmigrant E-2 visa. Because this is such a crucial aspect of the EB-5 process, it can directly impact the success of an application. This is why investors must pay close attention to their source-of-funds package and work with the best immigration attorneys and EB-5 experts to ensure their documentation is comprehensive and accurate.

Transitioning From E-2 to EB-5

E-2 visa holders may opt to transition to EB-5 status, provided they fulfill all requirements, including presenting evidence for a lawful source of funds. Therefore, E-2 applicants should be careful about keeping a detailed paper trail of their source and path of funds from the start. This precaution is important in case they eventually choose to switch to a long-term permanent residency option in the U.S. Proper documentation from the beginning can help E-2 investors make a smoother transition to EB-5 status and ensure compliance with USCIS requirements.

Compile Your Source-of-Funds Documentation With EB5AN

EB-5 applicants finance their investments in a number of ways. Since every investor’s situation is unique, there isn’t a comprehensive collection of standard source-of-funds documentation.

Instead, EB-5 investors can collaborate with industry experts to determine the necessary documents to meet USCIS’s requirements and increase their chances of financial and immigration success.

EB5AN has helped more than 2,300 families from 60 countries relocate to the U.S. as lawful permanent residents. Schedule a free call with our expert team today to answer any questions about your source-of-funds package or any other EB-5 visa details.