The EB-5 investment program offers foreign nationals from all nationalities the chance to become permanent residents of the United States. Billions of dollars of EB-5 investment funds have been poured into U.S. businesses since the EB-5 program began in 1990; investors and U.S. business owners alike recognize the many accomplishments of the EB-5 industry.

For all its merits, the EB-5 program does have to contend with several issues, including notoriously slow processing times for EB-5 visa petitions. United States Citizenship and Immigration Services (USCIS), which adjudicates all EB5 investment visa petitions, can take years to process Form I-526. This petition must prove that an EB-5 investment has been made in harmony with USCIS guidelines.

In addition to USCIS’s extended processing times, the EB-5 process can also be lengthened by requests for evidence (RFEs). USCIS sends an RFE when it deems that the information provided in an investor’s visa petition is incomplete, incoherent, or otherwise deficient. In many cases, RFEs for I-526 petitions point out issues in the EB-5 project’s business plan. We now examine common issues in EB-5 business plans and how to address these shortcomings when responding to an RFE.

Incomplete or Unclear Information

USCIS expects EB-5 business plans to provide abundant information on the project: its structure, potential for job creation, overall capital stack, and other details. Moreover, all projections must be supported by credible data. If a business plan is missing vital information, USCIS will likely send an RFE. Internal discrepancies in a business plan, such as inconsistencies regarding launch dates or the budget, may also result in an RFE.

RFEs usually specify what content is unclear or missing. EB-5 investors can either provide these materials or, in some cases, submit a new version of the business plan altogether. When the missing information is straightforward, investors can simply attach the needed documents to their response; if USCIS’s concerns are wider in scope, it may be preferable to update the whole business plan.

Minor inconsistencies within the business plan can usually be clarified without a substantial revision.

Lack of Compliance with EB-5 Regulations

The EB-5 program sets out a myriad of regulations governing the structure of EB-5 projects, how investments are made, the at risk status of the EB-5 investment, and other factors. Unfortunately, if the business plan clearly indicates a lack of compliance with USCIS guidelines, responding to the RFE won’t solve the issue. In contrast, an apparent lack of compliance may be the result of an inaccuracy or mistake in the business plan; investors in this situation should amend their business plans accordingly.

Outdated Information

As mentioned previously, USCIS may take years to adjudicate an investor’s Form I-526. Consequently, the agency may send an RFE asking for proof that the EB-5 project has complied with the job creation criteria or met other requirements. Project documents such as tax and employment records can be used to provide the needed evidence.

Investors will need to plan carefully and consult with EB-5 professionals to obtain their green cards. Admittedly, complying with USCIS regulations and gaining approval for Form I-526 can be challenging; still, the thousands of foreign nationals who have successfully relocated to the United States attest that the effort is well worth it. EB5AN offers valuable guidance to its investor clients, including RFE response consulting.

The EB-5 investment industry has afforded valuable opportunities to foreign nationals and U.S. business owners alike. In exchange for making an investment of at least $500,000 in a U.S. business, foreign nationals can apply for permanent resident status. Of course, a foreign national can be granted residency only if their EB-5 investment complies with all United States Citizenship and Immigration Services (USCIS) regulations. USCIS regulates EB-5 investments through Form I-526 and Form I-829, which investors must submit during the EB-5 process.

Project developers interested in the EB-5 industry must take care to ensure compliance with USCIS regulations. Even though raising EB5 investment funding is complex and can take several years, many U.S. businesses have benefitted from the below-market rates for EB-5 capital. To qualify for EB-5 funding, project developers must take the following steps.

Structuring an EB-5 Project

When deciding how to structure their EB-5 projects, developers must choose between offering a loan or an equity investment. All EB-5 projects involve a new commercial enterprise (NCE)—that is, the entity that receives the EB5 investment capital—and a job-creating entity (JCE). The NCE can either make a loan to the JCE or invest equity in it.

In equity EB-5 projects, investors are typically more involved in business management. This investment model is often used for smaller EB-5 projects. In contrast, most EB-5 investors choose loan projects, which are widely viewed as more secure. EB-5 investors in loan projects often play a limited role in day-to-day operations.

Once the investment type has been decided, an EB-5 project must gather several important documents, including a credible economic analysis, legal offering documents, a market feasibility study, an outline of the exit strategy for investors, and a business plan.

It is crucial for EB-5 business plans to show compliance with USCIS regulations. The Matter of Ho court ruling left a valuable precedent for EB-5 business owners and shows the major elements that must be included in an EB-5 business plan. These include descriptions of the project’s nature, business structure, job creation plans, budget, and personnel.

Ensuring Job Creation

Perhaps the most important USCIS requirement is that every EB-5 investment must generate at least 10 full-time jobs for U.S. workers. In light of this rule, EB-5 investors tend to favor projects with strong potential for job creation. Project developers should, in fact, aim to create more than 10 jobs per investor and thus offer a safer investment opportunity.

Moreover, the projected EB-5 capital raise will depend on the project’s capacity for job creation. The minimum EB-5 investment thresholds are $500,000 for targeted employment area (TEA) projects and $1,000,000 for non-TEA projects. For example, suppose that an EB-5 project’s job creation capacity can accommodate a maximum of 10 EB-5 investors. If the project is located in a TEA, it can therefore aim to receive $5,000,000 in EB-5 investment capital.

Projects that are carefully structured to follow USCIS requirements and have adequate potential for creating jobs will likely succeed in the EB-5 industry. Since keeping track of the many EB-5 regulations for project developers can be difficult, consulting firms such as EB5AN offer invaluable guidance on how to raise EB-5 investment funding.

As of November 2021, it has been more than four months since Congress allowed the EB-5 Regional Center Program to expire on June 30, 2021. The EB-5 investment industry was thus left without its most popular and practical investment model. Since then, there has been much speculation among EB-5 industry members about how regional center investment might be reauthorized; many hope that EB-5 reform, including renewal for the regional center program, will be attached to a legislative vehicle in Congress. However, due to the unpredictable nature of such legislation, EB-5 investors and project developers can only speculate as to when Congress will act.

Before the June 30 suspension, the vast majority of EB-5 investments were made through regional center-sponsored projects. In fact, an August 2021 study found that 93.4% of all EB-5 visa petitions had been filed by regional center investors. Regional centers, which are designated by United States Citizenship and Immigration Services (USCIS), manage EB-5 funds and act as service agents for the EB-5 industry.

Due to the central role of the regional center program, EB-5 investors and project developers are eager to see it reauthorized. The return of regional center investment will benefit both the EB-5 industry and the U.S. economy at large.

Benefits for the EB-5 Industry

The regional center EB5 investment model benefitted investors in many ways; for instance, the job creation requirements for regional center-sponsored projects were quite flexible. In addition to counting direct employment (jobs that appear on the project’s payroll), regional center investors could also calculate indirect and induced employment. Indirect and induced jobs are created by a regional center project’s positive economic impact. These criteria made it much easier for regional center investors to generate at least 10 full-time jobs and thus qualify for their EB-5 visas.

In addition, regional center investors were typically given very light managerial duties. Most regional center projects subscribed their investors as limited partners, allowing them to vote on important business decisions but not requiring their participation in day-to-day management. This managerial structure was convenient for investors and undoubtedly contributed to the popularity of regional center projects.

In contrast, now that regional centers cannot operate, all EB-5 investments must be direct. Direct EB-5 projects can count only direct full-time jobs and typically require their investors to have a more active role in business management. Many more foreign nationals will surely make EB-5 investments once the regional center program is revalidated.

Reauthorization is also urgent due to USCIS’s visa processing policies: after the June 30 suspension, the agency announced that it would halt the processing of all existing I-526 petitions associated with regional centers. This decision leaves thousands of regional center investors in limbo. If these investors lose confidence that the regional center program will be reauthorized, they could try to get their EB-5 investment funds back, thus putting regional center projects in an uncomfortable position. However, these issues can be solved if Congress acts quickly to pass legislation that revalidates the regional center program.

Benefits for the U.S. Economy

The EB-5 investment industry has created tens of thousands of jobs for U.S. workers and poured billions of dollars into U.S. businesses—all at no cost to taxpayers. Moreover, the EB-5 program encourages investors to choose projects located in targeted employment areas (TEAs), which need economic development. The valuable source of EB-5 investment capital provided by the regional center program has undoubtedly bolstered the nationwide economy.

The regional center component of the EB-5 program has provided investors, project developers, and the U.S. economy with innumerable benefits. It remains unclear when Congress will pass the legislation needed to reauthorize regional center EB-5 investment, but doing so will aid not only the EB-5 industry but the United States as a whole.

The Visa Bulletin for December 2021 contains important news for the EB-5 investment industry: as of December 2021, all direct EB-5 investors with approved I-526 petitions will be able to apply for and receive their conditional residence visas. This development is particularly significant for Chinese EB-5 investors, who had been subject to a final action date and a date for filing since 2015.

However, regional center investors with pending I-526 petitions are unable to benefit from the Department of State’s (DOS’s) removal of the cutoff dates. Since the EB-5 Regional Center Program has been suspended, United States Citizenship and Immigration Services (USCIS) is no longer processing I-526 petitions associated with regional centers.

Chart A, “Final Action Dates for Employment-Based Preference Cases”

Chart A of each Visa Bulletin indicates the final action dates for backlogged countries, which dictate when investors can receive their EB-5 visas. As of December 2021, direct investors from every country, including China, have achieved “C” (current) status. They are no longer subject to a final action date and can receive their EB-5 visas as soon as these are available. (Investors should note that the DOS may reestablish a final action date for China if the demand from that country threatens to exceed the overall number of available EB-5 visas.)

The regional center values in Chart A are marked as “U” (unauthorized) due to the expiration of the regional center program. Still, the Visa Bulletin states that Chinese regional center investors will be subject to a November 22, 2015, final action date if the program is revalidated.

Chart B, “Dates for Filing of Employment-Based Visa Applications”

Chart B contains the dates for filing, which determine when EB-5 investors from backlogged countries can apply for their visas. As of December 2021, direct investors from all countries are no longer subject to a date for filing, so they can apply for their visas upon receiving approval for their I-526 petitions. The date for filing for Chinese regional center investors, however, remains at December 15, 2015; it has not advanced in more than a year.

The Importance of Reauthorizing the Regional Center Program

The suspension of regional center EB5 investment has prevented numerous visa applicants from moving forward with the EB-5 process. Moreover, the EB-5 investment program was allotted a record number of 19,880 visas for the 2022 fiscal year. Once the regional center program is reauthorized, USCIS and the DOS will be able to take advantage of the large number of available visas and reduce the EB-5 backlog substantially.

An Ideal Time to Make a Direct EB-5 Investment

Foreign nationals now have a valuable, and likely temporary, opportunity to invest in direct EB-5 projects at only $500,000 and without being subject to a cutoff date. Potential investors should act quickly to identify a suitable direct EB-5 investment project and begin the EB-5 process.

Many U.S. business owners and foreign nationals have been drawn to the EB-5 investment industry. The EB-5 Immigrant Investor Program offers businesses in the United States a convenient source of funding that is often available at below-market rates. Moreover, foreign nationals can qualify for permanent U.S. residency in exchange for making an EB-5 investment in a qualifying business.

The EB-5 industry’s popularity was boosted on June 22, 2021, when a court ruling lowered the minimum investment threshold from $900,000 to $500,000. However, only EB-5 projects that are located in targeted employment areas (TEAs) can receive investments of $500,000.

Consequently, the vast majority of EB-5 investors prefer TEA projects. (Non-TEA projects can receive minimum investments of $1,000,000). Since every EB-5 investment must create at least 10 full-time jobs for U.S. workers, TEA projects benefit communities in need of economic development and funding.

Types of TEAs

TEAs can either be rural or high unemployment. To qualify as a rural TEA, an area cannot be located inside of a metropolitan statistical area (MSA) delineated by the Office of Management and Budget. In addition, rural TEAs cannot be on the borders of a city or town with a population greater than 20,000.

On the other hand, high-unemployment TEAs must have an unemployment rate that is, at a minimum, 150% greater than the U.S. national average. Moreover, a high-unemployment TEA will only qualify as such if it is located within an MSA or in a city or town with a population greater than 20,000.

How to Obtain TEA Designation

Many EB-5 project developers seek TEA designation. State agencies are in charge of granting TEA status; these entities must receive copious demographic evidence showing that an area is indeed a rural or high-unemployment TEA.

Proving rural TEA status is relatively straightforward; state agencies only need information on the area’s location and population. In contrast, obtaining high-unemployment TEA status requires doing further research. Many investors choose to use unemployment data from the American Community Survey (ACS), the Bureau of Labor Statistics (BLS), or a combination of both sources. Since the BLS updates its data more frequently, investors may choose to use that source. In any case, the unemployment statistics should be as up to date as possible.

Obtaining TEA designation can make the EB-5 process far more practical for both investors and project developers. Moreover, TEA projects provide economic stimulus to areas that need it the most, thus contributing to the EB5 investment program’s goals of reducing unemployment and strengthening U.S. businesses.

The EB-5 investment industry underwent a significant change on June 30, 2021: the EB-5 Regional Center Program expired. Regional center investment had been the EB-5 program’s most popular investment type; the vast majority of EB-5 investors used to choose regional center-sponsored projects. As of November 9, 2021, the regional center program is yet to be revalidated.

Only a few days before the regional center program was suspended, a court ruling overturned the EB-5 Modernization Rule and thus lowered the EB-5 investment threshold to only $500,000. This decision has made the EB-5 program accessible to more foreign nationals around the world.

Direct EB-5 investment, the program’s other investment type, is now the sole option for investors and project developers. Many foreign nationals have chosen to make direct investments of $500,000 during the second half of 2021. Since direct investment is an integral component of the EB-5 program and does not rely on government renewal, many foreign nationals now prefer this investment model. Direct investment is ideal for businesses with smaller offerings, and direct EB-5 investors are often involved in day-to-day business management.

However, many investors still prefer regional center projects.

Recent developments indicate that regional center investment may be nearing reauthorization. If the regional center program is indeed revalidated, the EB-5 industry will benefit greatly.

How Reauthorization Could Take Place

Many EB-5 industry stakeholders agree that Congress will only reauthorize the regional center program if a bill to that effect is included in a larger legislative vehicle. It seems that Congress may have to pass such a legislative vehicle soon to avoid a shutdown of the U.S. government due to lack of funds. Some analysts believe that Congress will pass an omnibus bill, which could well include new regulations for the EB-5 program, such as the reauthorization of its regional center component.

Of course, the EB-5 industry can only speculate about how Congress will avert the possible government shutdown, and there is no guarantee that their legislation will reauthorize regional center investment. If, however, Congress does choose to address the EB-5 program, it may also make unwelcome changes such as raising the minimum investment amounts.

Why Reauthorization is Urgent

Many EB-5 investors and project developers have been inconvenienced by the lapse in the regional center program. United States Citizenship and Immigration Services (USCIS) announced that it would cease to process pending I-526 petitions associated with regional centers and that it would no longer accept such petitions from regional center investors. This policy could cause investors to lose confidence in the EB-5 program and try to get their capital back, which would put project developers in a difficult position. Moreover, many of the visas allotted for the EB5 investment program could go unused.

Even though the EB-5 industry has been hindered by the expiration of the regional center program, the EB-5 program as a whole still retains its popularity. Even more investors and project developers are expected to join the EB-5 industry once regional center investment can resume.

The United States’ international travel ban, which had been in force since early 2020, was lifted on November 8, 2021. Now, travelers from 33 formerly banned countries can once again enter the United States.

Due to the ongoing pandemic, the U.S. government has instated several new rules designed to minimize the spread of COVID-19. The foremost of these is the requirement for all noncitizens to be fully vaccinated before entering the United States. U.S. citizens will not need to be vaccinated, and exceptions will also be made for noncitizens who are unable to get vaccinated due to health reasons. Regardless of their vaccination status, all travelers entering the United States must present a negative COVID test.

What This Means for the EB-5 Program

The COVID-19 pandemic has had a profound impact on EB-5 investors and project developers. Due to the widespread travel bans and lockdowns, many EB-5 projects found themselves in financial trouble. Moreover, United States Citizenship and Immigration Services (USCIS) nearly laid off about 70% of its employees due to reduced income during 2020.

The gradual economic recovery from the pandemic is undoubtedly beneficial to the EB-5 industry. Now, many more foreign nationals who are considering the EB5 investment program can come to the United States and visit open EB-5 projects. The return of international travel will also make it easier for potential EB-5 investors to meet project developers in person and learn about their offerings. Countries with high historic numbers of EB-5 investors, such as Vietnam and Brazil, had been banned from nonessential travel to the United States.

2021 has been a significant year for the EB-5 investment industry; EB-5 stakeholders have experienced many policy changes and new developments in recent months. June 2021 was a particularly eventful month that saw the repeal of the EB-5 Modernization Rule and the expiration of the regional center program.

The repeal of the Modernization Rule was welcome news for EB-5 investment stakeholders because it lowered the minimum investment threshold. Now, EB-5 investments of only $500,000 can be made in targeted employment area (TEA) projects. In addition, the temporary suspension of the regional center program has shifted investors’ focus toward direct EB-5 investment, which does not depend on periodic reauthorization. Interested foreign nationals should act quickly to make a direct EB-5 investment and begin the EB-5 process.

The EB-5 investment industry is thriving, and many U.S. business owners are realizing that the EB-5 program can provide them with a secure and convenient source of funding. Moreover, foreign nationals interested in relocating to the United States are often drawn to the EB-5 investment industry. Despite its success, the EB-5 program regularly undergoes changes; EB-5 regulations can be modified quickly, and potential investors need to be aware of recent developments in the industry. For example, the EB-5 Modernization Rule, which had significantly altered EB-5 guidelines, was repealed in June 2021. In addition, the regional center program, a key component of the EB-5 industry, was suspended the same month.

Potential EB-5 investors must also become familiar with the numerous United States Citizenship and Immigration Services (USCIS) regulations governing the program. It can be challenging to make an EB-5 investment that complies with all of USCIS’s requirements. Further, it is important to realize that the EB-5 process takes years and requires careful planning. Considering the following factors will help potential investors decide whether to participate in the EB-5 program.

Risk Factors

Making an EB-5 investment does not guarantee permanent resident status. USCIS examines every EB-5 investment thoroughly, and an investor’s visa petitions must provide copious evidence of compliance with all the applicable rules. For instance, Form I-829 must show that an EB-5 investment was used to create at least 10 full-time jobs for U.S. workers. If the EB-5 project fell short of creating the 10 needed jobs, then the I-829 petition will be denied, leaving the investor without a U.S. green card. Due to this immigration risk, interested foreign nationals should evaluate potential projects thoroughly, making sure that they will fulfill all of USCIS’s criteria.

Participating in the EB-5 program also entails a degree of financial risk. USCIS dictates that all EB-5 funds must be at risk: the financial resolution of the investment cannot be predetermined, so all EB-5 investors must be subject to either gains or losses. There is no guarantee that an EB5 investment will result in significant returns or even in a profit.

Choosing Sources of EB-5 Funds

Many EB-5 investors and immigration attorneys agree that proving the legality of the EB-5 capital is one of the most challenging stages of the EB-5 process. In Form I-526, investors must trace their capital back to its source using abundant evidence. Even though USCIS allows investors to use any legal source of funds, interested foreign nationals should try to obtain their capital from a source that is easy to document. For instance, salary payments would likely be easier to document than capital from real estate sales or an inheritance.

Additional Expenses

As of June 22, 2021, the EB-5 investment threshold is $500,000 for targeted employment area (TEA) projects and $1,000,000 for non-TEA projects. However, EB-5 investors are sure to incur many additional expenses, including filing fees for USCIS visa petitions, immigration counsel fees, and relocation costs associated with conditional permanent resident status. Potential investors must be prepared to pay more than $500,000 or $1,000,000 during the EB-5 process.

The risks associated with the EB5 investment program, USCIS’s strict source-of-funds requirements, and additional EB-5 costs must all be factored in when deciding whether to make an EB-5 investment. However, foreign nationals who have the time and resources to go through the EB-5 process should participate—enjoying U.S. permanent residency and even citizenship is well worth the time and effort.

The EB-5 investment industry is highly regarded among foreign nationals and U.S. business owners in need of funding. Since EB-5 investors become eligible for permanent residency while injecting valuable capital into the U.S. economy, the EB-5 program’s merits have long been recognized.

However, the EB-5 industry does face several challenges, many of which are related to bureaucratic issues. For example, United States Citizenship and Immigration Services (USCIS) is known for its slow processing times and substantial backlogs for Form I-526 and Form I-829, the two visa petitions that foreign nationals must submit during the EB-5 process. Moreover, the regional center program, the most popular EB5 investment option, was suspended on June 30, 2021.

A webinar released by the Department of State (DOS) on October 26, 2021, shows a great disparity between the number of visas allotted to the EB-5 program for the 2022 fiscal year and the number of investors eligible to receive these EB-5 visas. According to Charles Oppenheim of the DOS, the EB-5 program has 19,880 visas at its disposal—this is an all-time record for the EB-5 industry, even surpassing the 18,500 visas allocated for the 2021 fiscal year. However, as of early September 2021, only 368 EB-5 investors have received approval for their I-526 petitions and can thus move forward in the visa process. In this article, we explore two of the main factors causing this large number of unused visas.

The Expiration of Regional Center EB-5 Investment

As of October 28, 2021, the regional center program has been suspended for nearly four months. Congress’s failure to reauthorize this investment model has caused industry-wide setbacks. After the program’s expiration, USCIS announced that it would no longer accept I-526 petitions associated with regional centers. In addition, the agency ceased to process pending I-526 petitions from regional center investors.

The regional center program had been the most popular investment option; the flexible job calculation criteria, reduced managerial duties, and other benefits of regional center EB-5 investment made it far more popular than direct investment. Therefore, USCIS now has a large backlog of regional center I-526 petitions filed before the June 30, 2021 expiration. Had the regional center program been reauthorized by now, there would likely be many more investors eligible for EB-5 visas.

USCIS Processing Inefficiency

The second reason behind the low number of eligible EB-5 investors is USCIS’s slow visa petition processing. The agency has become known for allocating insufficient internal resources toward petition adjudication. Since USCIS is no longer working on regional center I-526 petitions, it should, in theory, be able to adjudicate direct I-526 petitions relatively quickly. Instead, direct EB-5 visa petitions are being processed as slowly as ever. Unfortunately, USCIS has not taken advantage of the opportunity to reduce its backlog of direct I-526 petitions.

Even though the EB-5 investment industry is currently facing many setbacks, direct EB-5 investment has never been more popular. All EB-5 projects must be direct because of the regional center program’s suspension, and the June 2021 repeal of the EB-5 Modernization Rule lowered the minimum investment amounts significantly. Therefore, many foreign nationals have made direct EB-5 investments at only $500,000. If the regional center program is reauthorized in the coming months, many new investors will likely be able to benefit from the lower investment threshold.

Many foreign nationals are eager to get started on the EB-5 investment process and obtain U.S. permanent resident status. After all, the EB-5 program has enabled thousands of investors to relocate to the United States while benefitting U.S. businesses and reducing unemployment.

Despite the obvious benefits of participating in the reliable and highly-regulated EB-5 program, investors need to comply with numerous criteria. United States Citizenship and Immigration Services (USCIS) evaluates every EB5 investment thoroughly when examining Form I-526 and Form I-829. These visa petitions must prove that an EB-5 investor is in compliance with all USCIS guidelines. If the information provided is ambiguous or does not show adherence to USCIS regulations, the investor will be unable to obtain permanent resident status.

Moreover, the EB-5 industry is complex, and interested foreign nationals may feel overwhelmed by the many investment opportunities available to them. Fraud has occasionally been an issue for EB-5 investors, so interested foreign nationals should work with an experienced immigration attorney. Additionally, the many regulations governing EB-5 funding restrict the way EB-5 investments can be made. Therefore, participating in the EB-5 program may not be a viable option for everyone.

Before making an EB-5 investment, foreign nationals need to evaluate the EB-5 industry carefully to determine whether they will be able to comply with USCIS’s requirements. The financial and immigration risk associated with EB-5 projects must be considered when deciding whether to participate in the EB-5 program.

Financial Risk

One of the most important restrictions on the use of EB-5 funding is that the capital must remain at risk. This means that EB-5 investors must be subject to either loss or gain; there can be no guarantees that the invested amount will be returned. Any contractual rights to repayment are forbidden and would disqualify an EB-5 investor from obtaining U.S. residency. In light of this requirement, interested foreign nationals must realize that there is no guarantee that an EB-5 investment will result in a profit. Of course, many EB-5 investors are comfortable with a degree of financial risk; they are primarily concerned with obtaining U.S. green cards, not gaining high returns on their EB-5 investment.

To avoid fraud, EB-5 investors must do background research on potential EB-5 projects and their management, focusing on the individuals in charge of managing the EB-5 funds. Visiting the EB-5 business and finding third-party information on it is highly recommended.

Immigration Risk

Making an EB-5 investment does not guarantee permanent resident status. When evaluating Form I-526, USCIS will determine if the EB5 investment was made in a qualifying project, complies with the at-risk requirement, and can create at least 10 jobs. If Form I-526 is approved, the EB-5 investor will receive a two-year conditional residency. Toward the end of their conditional residency, the investor must submit Form I-829 and prove that the EB5 investment created 10 jobs and remained at risk. The evidence provided in these applications must be detailed and thorough.

The success of these visa petitions partly depends on the EB-5 project’s management. The most reliable EB-5 businesses from an immigration standpoint (1) offer ample job cushions and (2) have alternative sources of funding in case they fail to raise all the expected EB-5 capital. When examining an EB-5 investment opportunity, foreign nationals must pay close attention to these two factors.

Evidently, the EB-5 process implies taking some risks, and EB-5 investors need professional consultation to succeed. Still, foreign nationals who can tolerate a degree of financial and immigration risk should participate in the EB-5 program. Making an EB-5 investment has enabled many to begin a new life in the United States.