The EB-5 Investor Program allows foreign nationals to obtain a U.S. Green Card through financial investments. The program aims to boost the economy while providing foreign nationals with an opportunity for a better life. Successful investors and their eligible families get permanent residency, unlocking many opportunities—one of which is access to education.

If you want your kids to attend U.S. colleges, you need to understand the respective tuition rates. Out-of-state tuition rates can be rather expensive, unlike in-state tuition which offers EB-5 families accessible and affordable higher education options.

However, residency requirements for in-state tuition vary depending on where you live. This can be a challenge if you have kids who will be going to college soon. So, knowing how to navigate these state-specific policies is important for EB-5 visa holders.

This article explains in-state and out-of-state tuition and discusses the requirements for EB-5 holders to secure in-state tuition rates.

Understanding In-State vs. Out-of-State Tuition

In-state tuition is the fee students pay to attend a public college or university in their home state. On the flip side, out-of-state tuition is a fee non-residents pay. The difference between them can be over 50%. For instance, in-state tuition at public universities averaged $11,260 per year in 2023, while out-of-state tuition averaged $29,150.

The rationale behind this distinction lies in state funding for public universities. Residents indirectly support these institutions through taxes. They, in turn, recognize this financial contribution, promoting accessibility for local students. Out-of-state tuition compensates for the lack of prior state tax support, ensuring fair funding for educational resources.

Residency Requirements to Qualify for In-State Tuition

Residency requirements for in-state tuition are different among states. However, they generally include physical presence, intent to remain, and length of residency. Most states mandate that students live in the state for at least 12 consecutive months before applying for in-state tuition. This period ensures that students and their families have established a genuine connection to the state.

For EB-5 visa holders, meeting these residency requirements involves a few strategic steps. First, you need to establish a physical presence in the state by securing housing and living there year-round. You can document this through lease agreements or property ownership.

Additionally, EB-5 holders must show intent to remain in the state. You can do this by obtaining a state driver’s license or filing state income tax returns. Note that maintaining consistent documentation is essential for proving residency.

EB-5 visa holders should keep thorough records of all actions that establish their presence and intent to stay. Utility bills, bank statements, and employment records can also support their residency claims. These documents collectively build a strong case for qualifying for in-state tuition rates.

The EB-5 Visa for In-State Tuition Eligibility

Concurrent filing of Form I-526E and Form I-485 offers significant advantages for EB-5 investors and their dependents, particularly regarding in-state tuition eligibility. This process allows eligible investors to file for their EB-5 visa and adjustment of status (AOS) simultaneously. As such, it enables you to legally live in the U.S. while USCIS processes your application.

The residency status can reclassify your dependents from “international” to “domestic” students. It makes your kids eligible for in-state tuition rates, which are lower than international student rates.

One of the major benefits of concurrent filing is that it eliminates the need for EB-5 investors’ children to obtain an F-1 student visa. The F-1 visa is mandatory for international students to study in the U.S. and comes with higher tuition fees and strict regulations. Concurrently filing Form I-526E and Form I-485 allows your dependents to live in the U.S. under the same adjustment of status. With this, they are able to bypass the need for an F-1 visa.

States and universities have different requirements for proving in-state residency. Generally speaking, in-state tuition rates are only available to EB-5 investors who fulfill specific requirements.

Eligibility criteria may include establishing residency for a specified period, typically one year.

Can Your Non-Immigrant Visa Qualify for In-State Tuition?

Non-immigrant visa holders, including those with F-1, E-2, and other temporary visas, generally face higher out-of-state tuition rates at U.S. public universities. However, there are specific circumstances under which non-immigrant visa holders might qualify for in-state tuition rates, through specific programs or policies. For example, some states grant in-state tuition to students who have attended and graduated from a local high school, regardless of their visa status.

A few states have passed tuition-friendly policies for immigrant families. California, New York, Texas, and Florida are examples of states that have these policies. Foreign nationals with non-immigrant status, particularly those holding I-129 or E-2 visas, may be able to register their student children for in-state tuition in these states.

Some states also have reciprocity agreements with neighboring states, allowing non-residents to pay in-state tuition rates. These agreements may sometimes extend to non-immigrant visa holders. However, this depends on whether they meet the requirements and can show long-term ties to the state.

Secure Quality Education for Your Kids With EB5AN

With the complexities involved in the EB-5 process, having experienced experts to guide you through it is quite important. This is where EB5AN comes in to ensure you and your eligible family achieve your specific goals.

With experience helping over 2,300 families from 60 countries relocate to the U.S., our expert team can inform you about how to ensure your kids can benefit from in-state tuition rates.

To learn more about the benefits of an EB-5 Green Card for foreign students, schedule a free consultation with our team now.

Form I-526E, Immigrant Petition by Regional Center Investor, is an important document for foreign investors seeking to get a U.S. Green Card through the EB-5 Immigrant Investor Program. Filing this form correctly is essential to ensure a successful EB-5 process. However, mistakes can happen, leading to delays, requests for evidence (RFEs), or even denial of the petition.

In this article, we will discuss the importance of Form I-526E, common mistakes to avoid, and what to do if an I-526E is filed with errors.

What Is Form I-526E?

Form I-526E is the petition that EB-5 investors must file with the U.S. Citizenship and Immigration Services (USCIS) to demonstrate their eligibility for the EB-5 program. The form requires investors to prove they have invested the required amount of capital in a qualifying EB-5 project, and that the funds were obtained through lawful means. They also need to prove that the investment will create at least 10 full-time jobs for U.S. workers.

Form I-526E is specifically designed for investors who are investing through a USCIS-approved regional center. Regional centers are entities that have been designated by USCIS to manage EB-5 investment projects and facilitate job creation. By investing through a regional center, investors can take advantage of more flexible job creation requirements, as they can count direct, indirect, and induced jobs created by the project.

The Importance of Getting Form I-526E Right

A properly filed Form I-526E is the foundation of a successful EB-5 application. USCIS will carefully review the form and supporting evidence to determine if the investor meets all program requirements.

If the form is incomplete, inaccurate, or lacks sufficient evidence, USCIS may issue an RFE or deny the petition. This can lead to significant delays in the EB-5 process or even result in the investor losing their opportunity to get a U.S. Green Card through the program.

Form I-526E sets the stage for the rest of the EB-5 process. If the petition is approved, the investor can proceed to the next steps, such as applying for conditional permanent residency and eventually removing the conditions on their Green Card to become a permanent resident. Investors who are based in the U.S. in valid nonimmigrant status can skip through a significant amount of wait time by filing their I-526E, I-485 (to adjust status), work and travel permits concurrently.

Common Mistakes When Filing Form I-526E

Incomplete or Inaccurate Information

One of the most common mistakes investors make when filing Form I-526E is providing incomplete or inaccurate information. This can include failing to answer all required questions, providing inconsistent information throughout the petition, or making typing errors. To avoid these mistakes, investors should carefully review the form instructions and double-check all information before submitting the petition.

Insufficient Supporting Evidence

Another common issue with Form I-526E is insufficient supporting evidence. Investors must provide documentation to prove the lawful source of their investment funds, the transfer of funds to the EB-5 project, and the creation of the required number of jobs. Failure to provide enough evidence can lead to RFEs or denial of the petition. Investors should work closely with their EB-5 lawyers and project sponsors to ensure they have all necessary supporting documents.

Failure to Meet EB-5 Program Requirements

Some investors may file Form I-526E without fully understanding or meeting the EB-5 program requirements. For example, they may invest in a project that does not qualify, fail to invest the required minimum amount, or invest funds that were not obtained through lawful ways.

Incorrect Filing Fees

Filing Form I-526E with incorrect fees can result in the rejection of the petition. As of August 2024, the filing fee for Form I-526E is $12,160, including the $1,000 EB-5 Integrity Fund fee. Investors should ensure they submit the correct fees in the form of a check or money order payable to the “U.S. Department of Homeland Security.”

How to Avoid Mistakes on Form I-526E

• Before completing Form I-526E, investors should carefully read the instructions provided by USCIS. The instructions detail the information and evidence required for each section of the form and provide guidance on how to properly complete the petition.
• Investors should work with their EB-5 attorney and project sponsors to gather all required supporting documents before filing Form I-526E.
• Before submitting Form I-526E, investors should review the petition multiple times to ensure all information is accurate, consistent, and complete.
• Working with an experienced EB-5 attorney is crucial to avoiding mistakes on Form I-526E. An attorney familiar with the EB-5 program can provide guidance on completing the petition, gather necessary supporting evidence, and review the form for accuracy before submission.

What to Do When an I-526E is Filed With Errors

If an investor discovers that their Form I-526E was filed with errors, they should consult with their EB-5 attorney immediately. Depending on the nature and severity of the error, the attorney may recommend one of the below actions.

• Filing an amendment to the petition: If the error is minor and does not materially affect the investor’s eligibility, the attorney may file an amendment to correct the mistake.
• Withdrawing the petition and refiling: If the error is significant or cannot be easily corrected, the attorney may recommend withdrawing the petition and refiling with the correct information and evidence.
• Responding to an RFE: If USCIS issues an RFE due to the error, the investor and their attorney will have an opportunity to provide additional information or evidence to address the issue.

It is essential for investors to act quickly and work closely with their attorneys to address any errors in their Form I-526E. Failure to do so could result in the denial of the petition and jeopardize the investor’s ability to obtain a U.S. Green Card through the EB-5 program.

EB5AN Can Help You Through the EB-5 Process

Regional centers play an important role in the EB-5 process for investors who choose this route.

When investing through a regional center, investors can benefit from several advantages such as more flexible job creation requirements and assistance with the immigration process. Importantly, a regional center should offer guidance and transparency at every stage of an investor’s EB-5 visa journey.

EB5AN has several low-risk EB-5 projects with high rates of success and Green Card issuance. These are some of the safest EB-5 options, with benefits like job creation guarantees, fast I-526E processing, and fully funded structures that don’t rely only on EB-5 capital. Schedule a free consultation with EB5AN to learn more.

EB-5 investors looking to partner with regional centers to meet the EB-5 investment requirements must perform due diligence before making their selection. As part of the due diligence process, the regional center’s repayment track record is essential as it shows the regional center’s ability to manage funds well.

Knowing this helps maintain the trust that your money is in safe hands. It also increases your chances of getting a successful approval from USCIS. This article explains the EB-5 repayment process and points out how you can assess a regional center’s repayment track record.

Understanding the EB-5 Repayment Process

Repayment in EB-5 investments means the process of returning your money after the project’s completion. It involves an interaction between a job-creating entity (JCE) and a new commercial enterprise (NCE). The JCE is a business or project that receives investment funds through the NCE. It then uses these funds to meet the 10 full-time positions per investor EB-5 program requirements.

On repayment, the JCE repays the loan to the new commercial enterprise, which the regional center manages. The NCE then returns the funds to you. The process ensures that investors eventually get their money back if the project is successful.

Below is a simplified breakdown of the process:

• The investor’s funds are loaned to the JCE to create jobs.
• After the loan term ends, the JCE repays the NCE. This repayment usually happens after the project’s goals are met.
• Once the NCE receives the funds, it returns the money to the investors. This cycle helps maintain the investment’s “at-risk” status, a requirement for the EB-5 program.

Regional centers play an important role in EB-5 investments. They manage projects that create jobs and attract investor funds. These units act as intermediaries between investors and job-creating entities, and their main job is to ensure projects meet EB-5 requirements.

Each EB-5 project may have a different exit strategy. The regional center’s specific project exit strategy also governs the terms of repayment. You can usually find this information in the offering documents and business plan. To fully understand these terms, you should consult an EB-5 immigration attorney to help you review the documentation before you invest.

Due Diligence and Repayment Track Records

Due diligence is crucial for EB-5 investors trying to decide on a regional center. By assessing the regional center’s track record, you can avoid making financial commitments that do not yield favorable results.

Foreign investors can perform due diligence by researching the regional center’s history. You can check their past projects and repayment records, looking for regional centers that have consistently returned funds to investors. A strong repayment history shows reliable fund management and successful project completion.

Next, foreign investors can request detailed financial reports and repayment schedules. These documents provide insight into the regional center’s performance. If a regional center is unwilling to provide detailed financial reports or repayment schedules, this could be a red flag.

Another important step to take is hearing about past investors’ experiences. Their feedback can reveal how the regional center handles investments.

Finally, the regional center’s compliance with EB-5 regulations must be verified. Ensure they have met job creation and investment requirements in past projects.

Repayment vs. Redeployment

In regional center investments, the regional center typically assumes the role of the NCE, loaning your funds to the JCE to use for the investment project. After the project’s completion, ideally, you should get your capital back with returns on the investment.

However, your investment must stay “sustained” and “at risk” for at least two years. Typically, a five-year loan term can meet this requirement. It allows you to file and receive approval of your I-526E petition, live in the U.S. as a conditional resident for two years, and then file the I-829 petition.

Delays in processing times and visa availability can complicate this process, as longer wait times may make the initial loan terms insufficient. To mitigate the risk, your funds must remain invested until you complete your two-year residency and file the I-829 petition.

Redeployment provides a solution by reinvesting funds into new projects. This keeps your investment compliant with EB-5 requirements if the loan is repaid earlier than the required timeframe.

While redeployment may pose an additional risk to investors, keeping your investment “at risk” and compliant through redeployment reduces the risk of denial of your I-829 petition due to premature repayment of the initial investment. Essentially, regional centers with premium redeployment strategies offer investors flexibility and security, regardless of changing timelines.

EB5AN Has a Strong Repayment Track Record

Safeguarding your EB-5 investment requires a thorough review of regional centers, especially their repayment history. A strong repayment track record indicates good management skills and can reduce financial risks.

EB5AN takes pride in sponsoring only the strongest EB-5 projects in the market. The success of our earlier projects such as VUE Sarasota and Saltaire St. Petersburg is proof that we are committed, along with the developers we partner with, to the financial and immigration success of our investors.

To learn more about how to make a low-risk EB-5 investment, schedule a free consultation with our expert team today.

The EB-5 visa is one of the most popular investment migration visas in the world, providing a pathway to residency and eventual citizenship in the world’s biggest economy.

However, EB-5 investment involves a significant amount of money and resources. Therefore, it is essential for prospective EB-5 investors to carefully evaluate and vet potential EB-5 projects before making an investment decision.

One of the most effective ways to do proper due diligence is to ask the EB-5 project for written responses to key questions about their operations and structure. In this article, we will discuss why.

The Risks of EB-5 Investments

The EB-5 program requires a substantial capital investment of $1,050,000 into a new commercial enterprise ($800,000 if it’s in a targeted employment area) that will create at least 10 full-time jobs for U.S. workers. While the program offers a relatively quick pathway to a Green Card compared to other visa categories, there is still a level of risk involved.

Immigration risk exists because the approval of an EB-5 investor’s visa petition is not guaranteed. The investment must satisfy strict requirements and the project must fulfill its job creation obligations in order for the U.S. Citizenship and Immigration Services (USCIS) to approve the investor’s case.

If issues arise with the project, the investor could face denial of their petition and lose their opportunity for a Green Card.

Financial risk is also a factor, as EB-5 investments are typically made into new ventures that have not yet established a track record. The commercial success of the project depends on business plans being well executed and market conditions remaining favorable.

If the project struggles financially or fails completely, the investor risks losing some or all of their EB-5 capital.

There’s also the risk of fraud. There have been cases of project developers misusing or stealing EB-5 funds, making false claims about the project’s potential, or even operating completely fraudulent schemes.

Investors who fall victim to EB-5 fraud not only risk losing their invested capital but also their ability to get a Green Card. USCIS takes allegations of fraud very seriously and will deny or revoke petitions associated with fraudulent projects.

Asking the Right Questions

To evaluate the immigration and financial risk involved with a particular EB-5 project, investors need to ask key questions and get a deep understanding of key aspects of the project and offering. Some important areas to probe include:

• The project’s capital stack and use of EB-5 funds.
• Financial projections and anticipated returns.
• Targeted employment area qualification.
• Job creation methodology.
• Permits, approvals and shovel-ready status.
• Developers’ track record and experience.
• Loan versus equity investment structure.
• Exit strategy and redeployment plans.

Investors should feel free to ask detailed questions about these topics and any other issues regarding their investment. They should also insist on getting responses in writing rather than just verbal assurances.

Why Written Responses Matter

Getting written answers from an EB-5 project provides concrete documentation of the claims and commitments being made. Written communication is more formal and legally-binding than verbal discussions, which can be subject to misinterpretation or forgetfulness.

When an EB-5 project responds in writing, they create a record that investors can refer back to. If a change arises in the future, having written documentation from the project will put investors in a stronger position to show what they were told before.

Insisting on written answers also sends a message that the investor is serious about holding the project accountable. Projects that readily provide clear written responses will appreciate an investor’s diligence and desire for transparency.

In contrast, projects that avoid written communication may have something to hide.

Red Flags to Watch Out For

If an EB-5 project refuses to provide written answers to an investor’s questions, this is a major warning sign. It suggests the project might want to avoid accountability in the future.

Responses that are incomplete or inconsistent with other information the investor has gathered are also red flags. The same is true of projects that make verbal assurances that don’t align with their written materials.

Projects that won’t share important documents like financial statements, permits, or contracts, should also raise concern.

If an EB-5 project does any of the above, investors should consider walking away. The potential risks are not worth it.

Transparent EB-5 Projects

High-quality EB-5 projects will be fully transparent and responsive to investors’ requests for information. They will provide timely, written answers to questions and be willing to discuss further.

Transparent projects will share relevant financial statements, contracts, business plans and third-party verification of their projects. They will welcome investors’ efforts because they are confident their project is up to standard.

The best projects will communicate key information to investors rather than just wait to be asked. They will regularly provide progress updates and alert investors to any potential future issues

Investors can feel more secure participating in EB-5 projects that operate transparently because it helps them make the right decisions. It also shows the project’s commitment to long-term investor support and success.

The Benefits of Working With Experienced EB-5 Professionals

While doing their own research on EB-5 projects is important, investors don’t have to do it alone. Working with experienced EB-5 professionals, such as immigration attorneys and financial advisors, can provide invaluable guidance and support.

EB-5 immigration attorneys have deep knowledge of the program requirements and can help investors know their eligibility, prepare their petitions, and respond to any requests for evidence from USCIS. They can also review project documents to identify any risks.

Financial advisors who specialize in EB-5 can help investors evaluate projects from an investment perspective. They can evaluate the project’s financial structure, business plan, and economic prospects to determine if it is a sound investment. They can also help investors understand the terms of the offering and negotiate any changes.

If you’re not sure where to start, book a free consultation with EB5AN’s expert team to get started on your EB-5 journey.

For many foreign workers, the H-1B visa is the most popular route to employment in the U.S. However, this visa category has limitations, such as a maximum stay of six years, job restrictions, and dependency on employers. These setbacks have led H-1B visa holders to seek more stable and permanent routes to a Green Card, which reduce the burden of complex renewal processes.

One promising option is the EB-5 Immigrant Investor Program. By applying to this program, H-1B visa holders may obtain Green Cards for themselves and their families, providing a clear pathway to permanent residency and eventual citizenship in the U.S.

This article will guide you through the process of transitioning from an H-1B visa to an EB-5 Green Card, highlighting the benefits, requirements, and steps involved.

What Is an H-1B Visa?

The H-1B visa is a work visa designed for skilled professionals from other countries to work in specialized fields such as technology, engineering, medicine, and education in the United States. To qualify, applicants must possess a relevant college degree or higher, and secure a job offer from a U.S. employer willing to sponsor them.

The H-1B visa offers several benefits, including the opportunity to live and work in the U.S., bring immediate family members, and gain valuable career experience. However, it does not provide a direct pathway to a Green Card, and those with long-term plans to stay in the U.S. must change their status accordingly.

Challenges H-1B Visa Holders Face

H-1B visa holders encounter several significant challenges that impact both their professional and personal lives. They include:

Job Dependency

H-1B visa holders are highly dependent on their sponsoring employer, so changing jobs requires transferring the visa to a new employer, which can be a complex and uncertain process. In addition, visa holders endure limited career mobility since they cannot work for any employer other than their sponsor, unless they go through the transfer process.

Visa Durations and Extensions

The H-1B visa is initially granted for up to three years, with the possibility of extension for another three years. Aside from some specific cases, after six years, holders must either leave the U.S. or have an approved petition for a different visa category. These extensions are not guaranteed and depend on various factors, including employer sponsorship and meeting stringent criteria.

Green Card Backlogs

Many H-1B visa holders, especially those from countries with high demand like India, turn to immigrant visa options to get Green Cards, but they tend to face long waits due to backlogs. This can leave permanent residency applicants in a prolonged state of uncertainty.

H-1B Visa vs. EB-5 Visa

As mentioned earlier, the EB-5 Immigrant Investor Program presents H-1B visa holders with an effective and permanent approach to their immigration challenges. The EB-5 visa allows immigrants to gain U.S. permanent residency by investing $800,000 in a new commercial enterprise (NCE) within a targeted employment area (TEA) or $1,050,000 elsewhere in the U.S.

Below are some of the ways in which an EB-5 visa may help H-1B visa holders:

Path to Permanent Residency

Where an H-1B visa initially provides a temporary work visa, the EB-5 visa provides a direct path to permanent residency for the investor and their immediate family. Eligible EB-5 Green Card holders can apply for U.S. citizenship by naturalization after five years.

Investment Over Employment

The EB-5 program requires a significant minimum investment amount of $800,000 in a targeted employment area or $1,050,000 elsewhere, plus the creation of 10 jobs. However, through this pathway, H-1B visa holders get to be less reliant on employers and make immigration decisions with independence.

Flexibility and Mobility

Since EB-5 visas are not tied to any one person, they afford applicants some level of flexibility and stability compared to H-1B visa holders. As a result, EB-5 investors who receive employment authorization documents (EAD) and advance parole (AP) through concurrent filing may travel outside the country and take on jobs with whomever they wish without any strict restrictions. This gets even more flexible once they receive their initial EB-5 Green Cards.

What Are the Steps to Transition from H-1B to EB-5?

As an investor ready to change from an H-1B to an EB-5 visa, you must take careful steps to ensure that the process runs smoothly. This section provides the necessary steps to achieve success in obtaining an EB-5 Green Card.

Initial Consultation and Planning

The first step is to consult with immigration attorneys and industry experts to plan your EB-5 investment. A consultation will help you understand the legal and financial implications of the investment. These professionals will help guide the visa process and assist with structuring your investment to meet EB-5 requirements.

Choosing the Right Investment Projects

Selecting the right investment project is crucial. The project must meet EB-5 requirements and align with your financial goals. Research the project’s background, management team, and track record. Ensure that the project has a clear plan for job creation and is likely to succeed. You should also consider factors such as the project’s location, industry, and economic impact.

Filing the I-526E Petition and Adjusting Status

The I-526E petition is a critical part of the EB-5 process. This petition proves that your investment meets EB-5 requirements. It includes detailed documentation of the investment, such as the business plan, job creation plan, and evidence of the source of funds. Accurate and thorough documentation is essential to avoid delays or denials.

If you are in the U.S. on a valid H-1B visa, you may qualify for concurrent filing of your Form I-526E at the same time as your Form I-485 to adjust your status to conditional permanent resident.

Toward the end of your two-year conditional permanent residency, you can file Form I-829 to remove conditions on your Green Card and become an unconditional permanent resident.

Invest in a Green Card With EB5AN

Transitioning from an H-1B visa to an EB-5 Green Card offers a clear path to permanent residency in the United States, providing greater stability and opportunities for you and your family. However, this is a complex transition that requires the assistance of experienced and knowledgeable industry professionals.

EB5AN has a proven track record of helping over 2,300 investors and their families successfully obtain their U.S. Green Cards. Read some of their testimonials here.

Schedule a free consultation with our expert team today to learn more about how you can adjust your status in the U.S. and become a permanent resident.

EB-5 investors can choose projects from various industries, each with unique benefits and risks.

Single-family home development projects involve building houses for single families to live in. They are generally low-risk projects since they are tangible, asset-backed investments with high demand, making them a safe option for many EB-5 investors.

At EB5AN, we know that picking the right EB-5 investment is vital for your financial and immigration success. So, this guide explains why single-family home projects in rural targeted employment areas (TEAs) are a smart choice for EB-5 investors.

Why Are Single-Family Home Developments Great EB-5 Investment Options?

The EB-5 investment program encourages a broad range of project types across various industries, such as manufacturing, healthcare, and technology.

EB-5 investors can also choose the hospitality industry, including hotels and resorts, or residential projects like condominiums, multifamily units, and single-family homes. Among these, single-family home developments often emerge as particularly attractive options for EB-5 investments. These projects are straightforward and easy to understand, making them an excellent choice for investors who are new to real estate.

Additionally, single-family home developments often generate revenue during the construction phase, which can significantly reduce financial risks. This steady flow of income ensures the project’s stability and financial health, making these developments a top choice within the EB-5 program.

Below, we will explore some of the advantages of single-family home developments as EB-5 projects.

Easy to Understand

Single-family home projects are relatively simple to understand, and simplicity is key when assessing risks associated with investments.

In a typical single-family home project, the developer prepares the land by dividing it into individual lots ready for sale. This is followed by infrastructure developments such as laying down sewer lines, installing electricity, gas, and water systems, and constructing roads.

Once the infrastructure is in place, construction of homes begins, and each house sold contributes to the project’s revenue. Ideally, the sales from these homes cover the construction costs and generate profits, which can then be reinvested into the project or distributed to investors.

This type of investment is transparent, making it simpler to monitor how funds are used and returned. Such clarity allows investors to effectively evaluate the project’s potential to sell homes and generate profits.

Revenue Generation

Single-family housing developments usually need less external funding to be completed compared to other project types. Initially, capital is needed to secure the land, lay foundational infrastructure, construct model homes, and initiate amenities. This initial capital usually stems from a combination of developer equity, loans, and other forms of investment.

Once the homes start selling, the revenue is reinvested into the project to support ongoing development. This cycle reduces the necessity for new debt, as existing financing can be repaid or recycled, promoting sustainable project advancement.

This approach highlights the financial viability of single-family home projects for EB-5 stakeholders. It also makes them attractive investment opportunities in the EB-5 program, especially in rural areas where steady cash flow reduces financial risk.

High Demand

The demand for single-family homes in rural areas has notably increased, especially after the COVID-19 pandemic. This high demand, coupled with a relatively limited supply, establishes a robust market for single-family homes in these regions. Unlike hotels, single-family homes cater to permanent residents, ensuring consistent year-round demand.

For EB-5 investors, single-family home projects in undersupplied rural markets present a particularly attractive investment opportunity. Projects in these areas, developed by experienced professionals, have a high chance of success. Such successful projects provide financial returns and reduce immigration risks for EB-5 investors.

How to Ensure Project Viability in EB-5 Single-Family Home Developments

Selecting the best EB-5 projects from any industry is critical to the success of your immigration journey. Even with safe investment options like single-family home developments, EB-5 investors must note that a project’s success depends on several other key factors. Below are essential factors you should look out for:

The Developer’s Track Record

Investors’ choice of developer is one of the most important elements in assessing the success of a single-family home project. A developer with a strong track record of completing projects and meeting financial commitments may suggest the current project will go as planned. Such a track record can significantly reduce the risk associated with your investment.

Conversely, developers with limited experience or a history of uncompleted projects pose a higher risk. Investing in projects led by these developers depends more on their promises than proven competence. So, it’s wiser to invest based on verified past success rather than just assurances.

Construction Stage

Projects already beyond the initial stages of construction typically present lower risk. This progress shows commitment to the project and reduces the chance of unexpected problems. This is crucial for EB-5 investors because job creation, which is necessary to meet the EB-5 program’s criteria, depends on ongoing construction activity.

Proximity to a Major Urban Area

The preference for rural areas is growing among those seeking a quiet lifestyle and EB-5 investors seeking promising opportunities such as priority processing. Single-family home projects in rural areas are attractive for their blend of rural tranquility and proximity to urban conveniences.

Many prospective residents appreciate the peace of rural life but also value easy access to urban amenities like shopping centers, healthcare facilities, and transportation hubs. Projects that strike this balance by being close enough to major cities yet classified as rural for the EB-5 program stand a better chance of success.

Due Diligence by EB-5 Experts

To ensure a solid investment in an EB-5 venture, investors are advised to consult an independent, expert third party to ensure financial risk diligence. The checks should include a thorough analysis of comparable sales in the area of a prospective project.

For instance, if existing single-family homes in the area are either unsold or selling below the projected prices of your potential investment, there might be an issue. This should raise significant concerns about the project’s viability.

A project with established market demand has a lower risk profile, indicating new homes will likely sell at or above projected prices. While this assures the financial health of the investment, it also ensures the stability needed to meet the financial and immigration goals of EB-5 investors.

Invest in a Single-Family Home Project With EB5AN

EB5AN presents an exceptional single-family home project in a rural TEA for EB-5 investors: Twin Lakes Georgia.

Situated close to Atlanta, this community features 1,300 homes, complete with premium amenities. To date, over 650 homes have been sold, and this project has generated over 3,000 EB-5-eligible jobs.

At EB5AN, we are committed to ensuring our investors have access to the best real estate opportunities that not only fulfill investment criteria but also provide a pathway to achieving immigration goals.

To learn more about how our projects can meet your EB-5 requirements, book a free consultation with our expert team today.

If you wish to get a Green Card through the EB-5 Immigrant Investor Program, you need to invest in a project that creates at least 10 full-time jobs in the United States. An important part of this process is project selection, and understanding the role of Form I-956F, Application for Approval of an Investment in a Commercial Enterprise, can help you through the due diligence stage. In this article, we will explain everything you need to know about Form I-956F and why it matters to EB-5 investors.

What Is Form I-956F?

Form I-956F is a special form that EB-5 regional centers send to the United States government. A regional center is a company that manages EB-5 investment projects. The form tells the government everything about a specific EB-5 project. It includes information such as:

• Where the project is located.
• The project’s business plan.
• An economic report that shows how the project will create jobs.
• Legal documents for investors.

The United States Citizenship and Immigration Services (USCIS) examines Form I-956F very carefully to ensure the project complies with all EB-5 program regulations. If USCIS approves Form I-956F, it means they believe the project is sound and meets the standards.

Why Is I-956F Approval Important for Investors?

When a project gets I-956F approval, it’s important for EB-5 investors involved in that project.

For example, if USCIS approves a petition, it shows that the project has a solid business plan and is likely to create the jobs it promises. This makes investors feel more confident about investing.

Every EB-5 investor has to submit their own Form I-526E petition to the government. This is different from Form I-956F. But if a foreign national invests in a project that already has I-956F approval, USCIS might review their I-526E petition more quickly, since they have already reviewed a lot of the project information when they approved the I-956F.

But remember, just because a project has I-956F approval, it doesn’t mean there is no financial or immigration risk for investors. If the project encounters problems or fails, investors could still lose their investment capital. That’s why it’s crucial for investors to do their due diligence and thoroughly understand the project before investing.

What Else Should EB-5 Investors Look For?

It is a good sign when an EB-5 project already has an I-956F approval, but it’s not the only thing investors should consider when choosing a project. Here are some other important factors:

The Experience of the Regional Center

Look for a regional center that has completed successful EB-5 projects before. It’s best if they have finished projects, returned investors’ money, and helped investors get their Green Cards. Be cautious about regional centers that are new or lack experience with EB-5.

Communication and Transparency

The regional center should be easy to talk to and quick to answer questions. They should provide investors with clear, detailed information, preferably in writing. If a regional center doesn’t communicate well or provide you with access to important documents like financial statements, that’s a red flag.

The Strength of the Project

When it comes to project selection, investors should also consider other aspects like the project’s location, industry, and developer. They should ask questions like:

• Is there a market demand for this project?
• Does the developer have a good track record?
• What is the project’s capital structure?
• Is it fully financed without EB-5 funds?
• Is construction already underway?
• Does it have current sales?

When a project has solid fundamentals in these areas, it lowers the financial risk for investors.

Invest in a Low-Risk EB5AN Project

When considering an EB-5 investment, the key is to work with qualified EB-5 professionals who can guide you through the process and help you make an informed decision. With the right project and the right team, the EB-5 program can be a great path to getting a U.S. Green Card while also investing in the American economy.

Remember, investing always carries risk. But by understanding the role of Form I-956F and all the other parts of the EB-5 process, you’ll be well on your way to reaching your immigration goals through the EB-5 Immigrant Investor Program.

Get in touch with an EB5AN expert for a free consultation on how to find low-risk EB-5 projects.

Securing your future with the EB-5 Immigrant Investor Program involves making sure your investment meets the necessary program requirements. One way of ensuring that is through repayment guaranties, which can enhance the security of your investment while still meeting the EB-5 “at-risk” requirement. This guaranty helps reduce financial risk by adding a layer of financial protection. Understanding how repayment guaranties work can help foreign investors make informed investment decisions.

In this article, we will explain what an EB-5 repayment guaranty is and how it fits into EB-5 regulations. We will also discuss its benefits and complexities and inform you of what to look for in an EB-5 repayment guaranty.

Understanding EB-5 Repayment Guaranties

An EB-5 repayment guaranty is a promise from a guarantor to repay an EB-5 loan if the borrower cannot. Typically, the borrower is the new commercial enterprise (NCE) that receives the EB-5 funds. This enterprise uses the funds from EB-5 investors to develop and manage the EB-5 project, which could be anything from real estate developments to businesses in other industries.

The guarantor, or the entity offering the repayment guaranty, is usually a well-capitalized company with substantial assets. These assets, however, must far exceed the total amount of the EB-5 loan. This ensures the guarantor can cover the repayment if needed and thus adds a layer of financial security for investors.

Are Repayment Guaranties Allowed?

Some investors may believe that repayment guaranties violate the EB-5 “at-risk” requirement. This is because they think guaranties eliminate all risks. However, the EB-5 program allows repayment guaranties as long as some risk remains.

USCIS’s “at-risk” requirement means the investment must have the potential for gain and risk of loss. Even with a repayment guaranty, the risk of the guarantor defaulting still exists. This possibility maintains the required level of risk.

Regional centers sometimes misinform investors about repayment guaranties. They may claim that such guaranties prevent USCIS approval. This misinformation might come from a lack of knowledge or competitive motives.

However, for a decade, EB5AN has partnered with reputable developers on multiple projects, and these projects have often included repayment guaranties. These projects, including those with repayment guaranties, have all received USCIS approval.

What Do You Stand to Gain With Repayment Guaranties?

Choosing an EB-5 project with a repayment guaranty significantly enhances your financial security. The guaranty ensures that if the borrower defaults, the guarantor will repay the loan. This reduces the risk of losing your invested capital. A strong guarantor with substantial assets provides a solid safety net.

Repayment guaranties make projects more appealing and reassuring to foreign investors. They add a layer of protection and show that the project has a well-thought-out structure. They also indicate a serious interest in protecting investor interests, attracting more investors, and increasing the project’s chances of success.

How to Avoid Potential Risks of Repayment Guaranties

Repayment guaranties involve detailed financial arrangements and legal agreements. As a result, investors must ensure the guarantor’s financial health and track record are solid. This involves reviewing financial statements and the guarantor’s assets. You may also need EB-5 attorneys to interpret these documents correctly.

Additionally, foreign investors must consider the potential risks involved. Even with a repayment guaranty, risks like the guarantor defaulting still exist. Therefore, along with scrutinizing the project itself, investors must assess the guarantor’s ability to fulfill their promise. An easy way of doing this is to have a detailed look into their financial obligations and debt levels. Thorough due diligence can help identify any red flags and ensure the guarantor’s reliability.

Verifying the authenticity of a repayment guaranty is another way to ensure the guarantor’s reliability. Investors must ask key questions about the guarantor’s assets and ability to cover the loan. Transparency is the watchword, emphasizing why investors must have access to the guarantor’s financial information.

Spotlight on Success: Twin Lakes Georgia Project

EB5AN has partnered with The Kolter Group to offer EB-5 regional center projects with repayment guaranties. One such project is the Twin Lakes Georgia Project. In this project, a Kolter parent company guarantees loan repayment. Where Kolter cannot pay back the loan, the capital of the parent company will cover the entire loan balance.

They have also guaranteed an I-526E approval refund. Again, this means that in the event that USCIS denies an investor’s I-526E petition, the foreign national will typically get their money back in a timely manner.

Tips for Selecting the Right EB-5 Project

Selecting the right EB-5 project involves careful consideration and thorough research. First, foreign investors must review all relevant financial documents provided by the guarantor to ensure they can back the loan up.

Next, they must assess the project’s overall structure. An ideal project is well-organized and has a repayment guaranty from an independent, well-capitalized company. Look for projects with a history of successful repayments and USCIS approvals. This track record indicates reliability and lower investment risk, and the guarantor’s past performance can predict future dependability as well.

Finally, foreign nationals should seek professional advice to navigate the legal complexities of investing in an EB-5 project. EB-5 attorneys can help interpret financial documents and assess the guarantor’s obligations. They ensure the investment meets EB-5 requirements and that the repayment guaranty is enforceable. Proper due diligence like this protects your investment and increases your chances of success.

Checklist for Evaluating a Repayment Guaranty

You may use these questions when trying to select the best repayment guaranty project:

• Does the guarantor have a strong financial track record?
• Are the guarantor’s assets sufficient to cover the loan?
• Is there transparency in the guarantor’s financial statements?
• What is the history and success rate of the project?
• Have all the guarantor’s debts been repaid, and are they in good standing?
• Is there any common ownership between the lender and the guarantor?
• Can you verify the guarantor’s assets on an ongoing basis?

Work With EB5AN for a Low-Risk Investment

Trusting EB5AN for your EB-5 investment means choosing a reliable and secure path to a Green Card for you and your eligible family members. With a proven track record and strong financial backing, we offer robust repayment guaranties that significantly reduce investment risk.

Schedule a call with the EB5AN team for a free consultation.

When you decide to start the EB-5 visa process, one of the first choices you’ll have to make is whether to invest the full amount right away or begin with a smaller amount and pay the rest later. This decision can have a significant impact on your path to getting a U.S. Green Card.

In this article, we’ll break down the key points to consider when choosing between a full or partial EB-5 investment.

The Basics of EB-5 Investments

Before discussing partial investments, let’s review the basics of EB-5. You start by selecting a project and agreeing to invest a specific amount. If the project is in a targeted employment area (TEA), the minimum investment is $800,000. Outside of TEAs, it’s $1.05 million. The money usually goes into an escrow account before being used for the project.

Full Investment vs. Partial Investment: What’s the Difference?

There are two main ways to set up your EB-5 investment:

1. Full Investment: You pay the entire $800,000 (or $1.05 million) upfront, showing full commitment from the start.

2. Partial Investment: You start with part of the total amount, typically around half, and promise to pay the rest over time. This can still count as a valid investment under EB-5 rules if done correctly.

How Partial EB-5 Investments Have Changed Over Time

Before the EB-5 Reform and Integrity Act of 2022 (RIA), most investors paid the full amount when filing their I-526E petition. However, partial investments became more popular just before the June 30, 2021 deadline (later extended to March 2022 with the enactment of the RIA). Investors wanted to secure lower investment amounts or ensure their aging out children still qualified. With the new RIA rules, partial investments are still allowed for investors who may not have $800,000 readily available.

The Advantages of Partial EB-5 Investments

Partial EB-5 investments offer several benefits.

• Securing your spot in the visa line by getting your priority date locked in while you gather the full investment amount.
• Selling assets like stocks or property when they’re most beneficial, avoiding financial loss.
• Matching partial payments with expected funds from other sources, such as property sales or stock returns.
• Investing less money upfront can feel safer during times of economic uncertainty.

Partial investments are becoming more common in countries like China, where long visa wait times and strict rules on sending money overseas have made EB-5 less appealing. For investors from India, partial payments help stay within the yearly limit on moving money abroad.

Possible Problems to Keep in Mind

While partial EB-5 investments have benefits, there are potential problems to consider.

• Some adjudicators may not be familiar with installment rules. Careful planning and comprehensive proof of funds are essential.
• Not all EB-5 projects or regional centers may accept partial investments.
• The current two-year period to sustain your investment starts after the full payment, potentially delaying your overall EB-5 process.
• Risk-averse investors may hesitate to make partial payments, especially if proving the source of funds is difficult.
• Potential RFEs from USCIS can slow down the processing of your I-526E petition.
• Partial investments require extensive coordination and documentation, which can be time-consuming and stressful.

Despite these potential problems, partial EB-5 investments remain a viable option for many investors looking for a flexible way to obtain a U.S. Green Card.

How to Make a Successful Partial EB-5 Investment

The law requires proof of where your money came from (known as source-of-funds) and evidence that you have actively started the investment process. This makes partial investments legally permissible but requires strong proof of your plans and commitment. Examples include bank statements, purchase agreements, property or stock transfers, and loan documents. If adequate evidence isn’t provided, USCIS may issue a request for evidence (RFE).

To increase your chances of success with a partial investment, consider these tips:

• Choose a reputable EB-5 project and regional center experienced with partial investments.
• Work closely with EB-5 lawyers and financial advisors to ensure your paperwork is complete and compliant.
• Make a clear plan for remaining payments and stick to it.
• Keep detailed records of all transactions and communications related to your EB-5 investment.
• Be prepared to provide additional evidence if USCIS requests it.

Remember, the key to a successful partial EB-5 investment is careful planning, attention to detail, and commitment to meeting all program requirements.

Invest With EB5AN

Deciding between a full or partial EB-5 investment is a personal choice based on your financial situation, risk comfort, and immigration goals. Partial investments offer benefits like securing an earlier priority date and reducing starting costs, but they also come with risks that need careful consideration.

Before making a decision, consult with experienced EB-5 lawyers, financial advisors, and other professionals who can help you weigh the pros and cons and develop a plan that fits your specific needs and goals.

If you’re unsure where to start, EB5AN can help. Our expert team has extensive experience assisting global clients in successfully obtaining EB-5 Green Cards. We also operate several regional centers that have a strong track record with partial EB-5 investments. Book a free consultation now.

U.S. tech giants Amazon and Google recently announced that they’ve suspended Green Card applications for the rest of 2024. This announcement comes in the wake of recent massive layoffs across the tech industry, which includes the bulk of H-1B workers.

Both companies are reported to have paused permanent labor certification (PERM) until 2025. Amazon announced its PERM suspension for the rest of 2024 earlier this year, while Google suspended PERM applications in January 2023 before laying off 12,000 workers. Google’s PERM suspension is set to last until Q1 2025.

Industry experts believe that many tech companies will follow in their footsteps and suspend PERM filings in the coming months. These events have sent ripples across the H-1B workforce, creating uncertainty for H-1B workers looking to become permanent U.S. residents.

Many H-1B visa holders have begun looking for alternative ways of acquiring U.S. permanent residency. The EB-5 program is one option that offers them a more permanent immigration solution.

In this article, we’ll discuss the implications of Amazon and Google’s Green Card suspensions for H-1B workers and how the EB-5 program can solve their immigration challenges.

Impact of Green Card Suspensions on H-1B Workers

The H-1B visa route allows U.S. companies to hire specialized foreign workers. Congress introduced the H-1B visa in 1990, and it quickly became a popular route for hiring foreign tech talent. Foreign professionals, especially Indian nationals, also saw it as an opportunity for career advancement in the U.S.

However, the recent changes in the tech industry have disrupted many H-1B workers’ plans of securing U.S. Green Cards. Many H-1B workers have had to return to their home countries following the massive tech layoffs of the last few years. This is because the H-1B visa is employment dependent, meaning H-1B workers must leave the U.S. within 60 days if they cannot find new employment.

Amazon and Google’s Green Card application suspension has worsened this situation for H-1B workers. These suspensions mean that current H-1B employees of these companies whose visas are near the six-year limit will not receive sponsorship for their EB-2 or EB-3 Green Card applications. Experts predict that more H-1B workers may have to leave the U.S. in the coming years if this trend continues.

Aside from these issues, the H-1B visa has several other limitations that make pursuing U.S. permanent residency difficult for its holders.

Limited Allowance

The H-1B visa is a temporary non-immigrant visa that permits a three-year stay with the option of renewing for up to three additional years. You cannot renew your H-1B visa beyond this six-year limit except under specific conditions. Additionally, you must receive employer sponsorship for an EB-2 or EB-3 visa to remain in the U.S.

This poses two significant challenges. First, your employer may be unwilling to sponsor your EB-2 or EB-3 visa application. Second, If your employer agrees to sponsor your Green Card application, you may get stuck on the USCIS waitlist for years due to heavy backlogs in employment-based Green Card applications.

The H-1B visa also limits your career choices. Only a few companies hire H-1B workers, and if you want to switch employers, you must apply to USCIS for a new H-1B visa.

Family Restrictions

Although the H-1B visa allows you to bring your dependents (your spouse and unmarried children under 21) to the U.S., they can only work if they obtain individual employment permits. Their H-4 dependent visas are also entirely reliant on your H-1B visa. If you lose your job and ability to remain in the U.S., they must also leave with you.

Furthermore, your dependent children will lose their H-4 dependent status once they turn 21. Once this happens, they must switch to another visa route to continue residing in the U.S., or else they will have to leave.

Why the EB-5 Program Is a Better Solution for H-1B Workers

Given the uncertainties and limitations of the H-1B visa, it is often not a long-term solution for foreign professionals looking to make the U.S. their permanent home. H-1B workers, especially those in the tech industry, must start searching for an alternate way to remain in the U.S.

The EB-5 Immigrant Investor Program offers a more permanent immigration solution for H-1B workers. The program grants permanent residency to foreign individuals who can invest at least $1.05m or $800,000 (for TEA investments) in the U.S. economy and create at least 10 full-time jobs for American workers.

Although EB-5 is an employment-based preference, it does not require employer sponsorship. Instead, it requires you to create employment for qualified U.S. workers. There’s also no special educational or professional achievement requirement for the EB-5 visa.

Importantly, the EB-5 program offers the fastest route to acquiring a U.S. Green Card for H-1B workers, especially for Indian nationals, who make up most of the H-1B workforce.

Benefits of the EB-5 Program

Unlike the H-1B visa, the EB-5 visa is a direct route to U.S. permanent residency. EB-5 investors and their dependent family members will receive conditional Green Cards once their application is successful. They can then apply to have the conditions removed after two years and apply for U.S. citizenship by naturalization within two years of obtaining their Green Cards.

The EB-5 visa also offers more freedom and flexibility. EB-5 Green Card holders can live, work, or study anywhere in the U.S. And there are no employer limitations, so you can work for any employer you choose, start a business, or become an independent contractor.

The EB-5 Green Card also gives you and your family access to almost the same educational, financial, healthcare, and social benefits available to U.S. citizens. You and your family will also enjoy the freedom to travel in and out of the U.S. without restrictions.

Expedited Green Card With Rural Investments and Concurrent Filing

In 2022, Congress enacted the EB-5 Reform and Integrity Act (RIA), which introduced several welcome changes to the EB-5 program.

The RIA reserved 32% of the EB-5 annual allocation as “set-aside” visas. Under this set-aside category, 20% is allocated to rural TEA projects, 10% to projects in high-unemployment areas, and 2% to infrastructure projects. The RIA also instructs USCIS to prioritize processing for EB-5 investments in the rural category.

H-1B workers can take advantage of rural set-aside EB-5 visas and the priority processing provision to quickly secure their future in the U.S., as backlogs are yet to exist in this category. This option provides an easy route to escape the heavy backlog and long wait times in the EB-2, EB-3, and unreserved EB-5 categories, especially for Indian nationals, who are experiencing large backlogs.

Another beneficial provision of the RIA is its concurrent filing option. This provision allows EB-5 investors who are already in the U.S. on nonimmigrant visas to simultaneously apply for adjustment of status, a work permit, and a travel permit with their I-526E petition. Once you’ve filed these petitions, you can stay in the U.S. even if you lose your job before receiving approval.

The concurrent filing option throws a life-saving line to H-1B workers. They will typically receive their employment authorization documents and travel permits within a few short months, granting them the freedom to remain in the U.S. to pursue their career choices without restrictions.

EB5AN Can Help You Speed Up Your U.S. Green Card Journey

Unlike the H-1B visa, the EB-5 visa offers U.S. foreign workers more stability and security, especially with the tech industry’s massive layoffs. It provides a long-term immigration solution and guarantees access to the numerous opportunities in the U.S.

If you’re an H-1B worker looking for alternative pathways to permanent residency, you should consider the EB-5 program. And here at EB5AN, we can provide all the guidance you need for a successful EB-5 Green Card application.

EB5AN has successfully helped over 2,300 families from 60 countries relocate to the U.S. We offer our clients first-rate, low-risk EB-5 regional center projects with a 100% USCIS approval rate to date. We can help you find a project that suits your immigration and financial goals.

For more information about the EB-5 program and how to switch from an H-1B to an EB-5 visa, book a free one-on-one consultation with our expert team today.