Although yearly applications for the EB-5 Immigrant Investor Program have increased significantly, there is only a limited number of available EB-5 visas per year. This has historically caused processing delays and EB-5 visa retrogression.

The United States Citizenship and Immigration Services (USCIS) Immigrant Investor Program Office (IPO) determines visa availability monthly by reviewing the Department of State’s Monthly Visa Bulletin. The office has typically prioritized petitions of investors for whom a visa is immediately available, or soon will be. To understand this, foreign nationals should look at the most recent visa bulletin and see if their birth country is listed “current” in their specific visa category.

In 2022, the EB-5 Reform and Integrity Act (RIA) introduced new EB-5 visa categories alongside other beneficial provisions, changing how EB-5 visa availability is calculated. With these new visa categories that are in “current” status as of May 2024, investors can strategically choose projects that increase their chances of obtaining U.S. permanent residency.

In this article, you will learn about EB-5 visa availability, including various factors affecting it and the right strategies to avoid long processing times.

What Factors Affect EB-5 Visa Availability?

From visa backlogs to processing delays, we have highlighted below some general factors affecting EB-5 visa availability.

Per Country Limit and Visa Backlogs

The U.S. Immigration and Nationality Act (INA) provides that no single country may take up more than 7% of the total visas allotted in a year. This leaves about 10,000 visas available for EB-5 applicants yearly, a limit that is reached quickly, given the program’s popularity.

The Department of State (DOS) and USCIS stop granting EB-5 visas once a particular country reaches its annual cap. Consequently, applicants who cannot receive their visas in the year they applied will be transferred to the following year, creating a backlog in the visa allocation system.

Backlogs prolong the EB-5 processing times and reduce efficiency in the coming year since backlogged investors are attended to first before newer applicants are addressed.

EB-5 Visa Carryovers

Aside from the U.S. government’s annual cap, unused visas may be carried over across different categories. This way, DOS can manage the supply of visas, reduce visa backlogs, and potentially increase visa availability for EB-5 applicants.

Under the RIA, new provisions for visa carryover in the reserved categories were introduced. According to these provisions, unused reserved visas from the previous fiscal year are rolled over to the current fiscal year within the same category. If these carryover visas are still not used within that fiscal year, they are then added to the unreserved visa numbers.

For example, reserved visas from FY 2022 were carried over to FY 2023. Since FY 2023’s reserved visas also went unused, they rolled over to FY 2024. This resulted in an unusually high number of EB-5 visas being available in FY 2024, including those in the unreserved category. If governmental bodies and embassies in retrogressed countries can process these available visas efficiently, this relatively new EB-5 visa carryover policy may also help ease current backlogs, so investors should follow these rolled over visa numbers closely.

Processing Delays

USCIS and other governmental agencies may sometimes face administrative challenges, such as staffing issues, which may delay processing, further prolonging the EB-5 process.

Such delays may alter important dates, making it difficult for investors to plan their EB-5 journey. Additionally, increased waiting times can result in backlogs, affecting the overall availability of visas as many applicants will now receive their visas later than expected.

Legislative Changes

New immigration legislation and adjustments to the EB-5 program can either drive or reduce demand for EB-5 visas. For instance, the introduction of the Regional Center Program back in 1993 encouraged a lot of foreign nationals to opt for the EB-5 pathway to permanent residence in the U.S.

A similar situation happened after the enactment of the RIA, with the new set-aside visas offering unique opportunities to investors from traditionally backlogged countries like China and India.

Theoretically, policy updates and systemic changes such as technology upgrades, streamlined procedures, and improved staffing could increase USCIS’s capacity and the overall efficiency of the EB-5 program. Such changes would likely result in more effective EB-5 visa management, reducing backlog and increasing EB-5 visa availability for investors.

How Can EB-5 Investors Estimate Visa Availability?

Investors who applied for an EB-5 visa before the RIA should follow monthly bulletins under their relevant categories to see how their priority dates (date when they filed their I-526E petition) correspond to final action dates.

Foreign nationals planning to place a new application can also predict visa availability in several ways. These include:

Visa Bulletin

The visa bulletin is the most accurate source of information on EB-5 visa availability. The DOS releases monthly updates via the bulletin, showing important dates such as final action dates (date when a Green Card can be issued) and dates for filing (date when foreign nationals can apply for a Green Card with the National Visa Center.) Monitoring any updates in these charts helps EB-5 stakeholders understand the current situation and predict upcoming changes.

Foreign investors who need to estimate the most favorable time to apply for the EB-5 visa can seek guidance from EB-5 experts to correctly analyze the visa bulletin and act accordingly depending on their specific circumstances.

EB-5 Historical Trends

Tracing historical records on the issuance of the EB-5 visa can help estimate visa availability in a given year. By analyzing past years’ trends, investors can identify seasonal fluctuations, policy adjustments, and other factors that impact visa availability.

Sources that could aid your analysis include the visa bulletin and DOS’s monthly reports on application volumes and approval rates. By studying accurate EB-5 historical trends, investors can anticipate how future changes may affect their immigration process.

Webinars and Informational Content

Information sessions and webinars provide valuable learning opportunities for foreign nationals applying for EB-5 visas. At such events, various EB-5 experts, such as immigration attorneys and investment advisors, offer in-depth insights into the EB-5 visa.

Investors can also follow reliable industry sources closely to stay informed about any important developments. EB5AN covers many relevant topics on its website, including recent immigration policy updates, program regulation changes, visa availability observations and trends, litigation, and successful EB-5 process navigation strategies.

How Can EB-5 Applicants Reduce Their Wait Times?

The factors that influence EB-5 visa availability are mostly outside the investor’s control. Still, EB-5 applicants must do due diligence to prevent delays in their EB-5 visa process and reduce wait times. Some strategies that may shorten the EB-5 process are:

Submit Complete and Correct Documents

EB-5 applicants must ensure that all the documents required for the immigration process are readily available. Submitting wrong or incomplete documents to USCIS can result in significant setbacks for applicants, prolonging the EB-5 timeline.

Invest in Target Employment Area (TEA) Projects

TEA projects are situated in areas with higher unemployment rates or economic needs, making job creation a primary focus. As a result, the U.S. government incentivizes investment in these areas by providing additional visa availability, a lowered minimum investment amount, and priority processing in the case of rural EB-5 projects.

Choose a Reputable Regional Center

Proper research is necessary when choosing a regional center to manage EB-5 investment. Thorough research involves examining the regional center’s portfolio of past projects and their outcomes before judging its credibility and competence.

Applicants should select regional centers with a track record of successful EB-5 projects. These regional centers should have I-956F approvals from USCIS for each project. The purpose of this form is to provide USCIS with the necessary information to fully understand the EB-5 offering. USCIS uses Form I-956F to collect essential details about an EB-5 project and to determine its compliance with the EB-5 program.

When you file Form I-526E to apply for an EB-5 Green Card, USCIS evaluates your petition based on the project’s compliance with EB-5 requirements and your personal eligibility. If your EB-5 project has already received Form I-956F approval, USCIS has confirmed its compliance and won’t need to review the project again. Since it has already been vetted, USCIS may process your petition more quickly.

Begin Your EB-5 Journey With EB5AN

Obtaining an EB-5 visa involves multiple stages, each with its own intricacies. Commonly used sources like the State Department’s visa bulletin may seem confusing at first glance, but this is where seasoned industry experts come in.

EB5AN has successfully facilitated the EB-5 processes of over 2,300 families worldwide. We understand that every applicant’s circumstance is unique, and we are committed to providing personalized services for our clients.

To better understand the dynamics of the EB-5 program, schedule a free call today and learn how we can assist you with your EB-5 journey.

Administered by the U.S. Citizenship and Immigration Services (USCIS), the EB-5 Immigrant Investor Program is an invaluable resource for qualified foreign investors seeking permanent residency in the United States by taking part in strategic investment opportunities.

While personal funds constitute a significant portion of all EB-5 investments, many EB-5 investors have turned to loans to explore new ways of accessing capital.

In this article, we will provide some tips on managing risk and maximizing chances of success, as well as several strategies EB-5 investors can employ to strategically fund their investments using loan proceeds.

Summary of the EB-5 Visa Program

The EB-5 visa program is a United States immigration program that allows foreign investors to make a significant capital investment in the U.S. in exchange for permanent residency.

Established by the Immigration Act of 1990, the program’s goal is to spur job creation for U.S. workers and invest substantial capital in underrepresented regions needing economic growth.

The types of investments foreign nationals can make include direct investments and investments in regional center projects.

Direct investments involve EB-5 investors injecting capital directly into a new business to create at least 10 full-time jobs for qualifying U.S. workers.

Regional center projects designated by USCIS focus on promoting economic growth in underdeveloped geographic regions, with funds from EB-5 investors required to create jobs, develop real estate, and foster other regional growth opportunities.

How to Use Loan Proceeds for EB-5 Investments

While investing capital into a project, EB-5 investors have several financing options, including using loan proceeds. Let’s explore several aspects of this option.

Can a Loan Be Used to Fund an EB-5 Investment?

Yes, a loan can be used to fund an EB-5 investment. EB-5 investors can take out different types of loans, such as personal loans (based on one’s credit score and assets), collateralized loans (backed by investments), and co-signer/guarantor loans.

However, it’s essential to remember that EB-5 investments are considered “at-risk,” meaning failure to comply with the program’s terms, such as creating the minimum number of jobs or meeting other specifications, can result in investment loss. This means any secured loan cannot be secured by the EB-5 investment itself. It needs to be secured by the investor’s personal assets, and the source of the funds used to purchase the asset needs to be lawful.

Though less common, EB-5 investors can also use unsecured loans, while paying additional attention to providing a comprehensive paper trail. More about unsecured loans will be covered below.

A Word on Zhang vs. USCIS

Between 2015 and 2020, USCIS temporarily stopped accepting unsecured loans. The agency decided that cash from unsecured loans should be classified as “indebtedness” rather than “cash.” As a result, many investors had their immigrant petitions denied.

When the I-526 petitions of two EB-5 investors, Zhang and Hagiwara, were denied due to their loans being classified as “indebtedness,” they challenged USCIS in court.

Zhang vs. USCIS then became one of the most important court cases in the history of the EB-5 program. After a long process that led up to the investors’ victory, in July 2021, USCIS announced that it would stop categorizing funds from unsecured loans as “indebtedness.”

Naturally, this case offered more clarity to prospective investors seeking to diversify their EB-5 financing options.

Understanding the Basics of Using Loan Proceeds

When planning to invest in the EB-5 Immigrant Investor Program, it’s essential to understand the loan terms and conditions. Here are some key factors to consider:

1. Investment Amount

The EB-5 program requires a minimum investment of $800,000 for projects in targeted employment areas (TEAs) and $1,050,000 for other areas. If you plan to use a loan, you need to ensure the source of the borrowed funds can be clearly documented.

2. Interest Rates

Interest rates on loans can vary widely based on the lender and market conditions. EB-5 investors should seek out loans with competitive, market-level interest rates.

3. Loan Duration

The length of the loan term will impact your repayment schedule and the total amount paid. Loan terms generally range from five to 20 years. It’s important to choose a term that fits your overall financial strategy.

4. Repayment Terms

Repayment options differ from loan to loan. Some may require monthly interest payments with a lump sum principal payment at the end of the term, while others offer a more gradual repayment plan throughout the loan term. Be sure to fully understand the repayment terms before finalizing your loan agreement.

Get Expert Support From EB5AN

Investing in an EB-5 project requires plenty of due diligence and carefully vetting all information provided by regional centers and the project stakeholders. When determining your EB-5 financing options, you should rely on only the most seasoned professionals with expertise in strategic EB-5 investments.

EB5AN has assisted more than 2,300 families from 60 countries, guiding them through the process of obtaining permanent residency with resounding success.

To learn more about the best ways to fund your EB-5 investment, book a free call with our expert team today.

Many foreign nationals plan on becoming lawful permanent residents in the U.S. with the hope that their spouse and children can benefit from a high quality of life, education, and increased career opportunities.

However, it can sometimes seem like a daunting—if not impossible—task when you review the numerous forms and timelines you must follow to find the best option for you and your family. Complex legal terms certainly don’t help, either.

What exactly does it mean to be a derivative beneficiary? Who qualifies as a derivative beneficiary of your EB-5 visa? Does a derivative beneficiary need to fill out the same forms as a principal applicant, at the same time? In this article, we’ll walk you through these questions and help you better understand how to succeed in securing Green Cards for your family.

What’s the Difference Between a Principal and a Derivative Beneficiary?

For EB-5 visa purposes, there are two main categories of beneficiaries: principal and derivative. The principal or primary beneficiary is the individual applying for the investment visa and making the required investment. They’re also known as the main or primary applicant.

In other words, the principal beneficiary is the person who applies for the EB-5 visa in the United States.

A derivative beneficiary is an individual who stands to benefit from the main applicant’s visa but who is not the one applying for an EB-5 visa. These beneficiaries usually include close family members, such as the spouse and children.

On a basic level, the main difference between the primary or principal beneficiary and the derivative beneficiary is their status. The principal beneficiary is also the main visa applicant, while the derivative beneficiary, as the name suggests, is someone who derives certain benefits as a result of the primary visa applicant.

Who Can Qualify as a Derivative Beneficiary for an EB-5 Visa?

As a general rule, the immediate relatives and dependents of the principal beneficiary are eligible to qualify as derivative beneficiaries. This includes the principal beneficiary’s spouse and any dependent, unmarried children under the age of 21.

Adopted children also qualify as long as they are under 21 and unmarried. However, relatives like the applicant’s siblings, aunts, uncles, parents, or grandparents are excluded.

Derivative beneficiaries only become eligible for the visa benefits after the principal beneficiary’s application is approved. Usually, if the principal beneficiary (the main applicant) qualifies for the program and is issued their EB-5 visa, all derivative beneficiaries should also be eligible.

It’s important to note—since this isn’t universal for investment visas—that applicants with same-sex legal partners or spouses are eligible to qualify as derivative beneficiaries. As long as the couple was married in a jurisdiction where same-sex marriage is legal, the primary applicant’s partner may qualify for these benefits. Also, any children legally under the care of a couple, whether biological or not, may qualify as derivative beneficiaries.

Who Does Not Qualify as a Derivative Beneficiary?

It’s much easier to summarize the limited categories of individuals who qualify as derivative beneficiaries than to give an extensive list of those who do not. As a general rule, EB-5 visa beneficiaries can only include immediate family. The issue with this terminology is in the details.

As mentioned above, “immediate family” does not include grandparents, parents, siblings, cousins, nieces, nephews, aunts, or uncles. However, there are some additional categories that may be less obvious.

For example, what constitutes a spouse? You may believe your common-law partner would qualify as a derivative beneficiary because you’ve been together for 12 years and have two kids, but the immigration authorities may not see it that way.

You must be legally married to your spouse in your home country for your partner to qualify as an EB-5 beneficiary. United States Citizenship and Immigration Services (USCIS) only recognizes legally married spouses.

However, if your home country does not recognize your union as a legally binding marriage, the U.S. government will not consider your partnership lawfully binding. Therefore, your spouse won’t qualify as a derivative beneficiary.

As for children, there are also special rules that apply.

As mentioned above, unmarried children under 21 can qualify as an EB-5 dependent. But what if you were unmarried when your parent applied for an EB-5 visa, but got married before the application was complete? Unfortunately, you would not qualify.

On the other hand, before the enactment of the Child Status Protection Act (CSPA), a big worry for EB-5 investors with children was that their kids would turn 21 and “age out” before their visa applications would be approved. Many children were aging out because of long processing delays, especially from backlogged countries. The act was passed to “freeze” a child’s age at the time their visa application is submitted, rather than when it’s adjudicated, to address this issue.

Due to intricacies like these concerning the eligibility of EB-5 derivate beneficiaries, it is highly recommended that foreign investors work with an experienced immigration attorney throughout the application process.

How to Apply for Derivative Status?

The very first step to acquiring a derivative visa is for the principal beneficiary to qualify for the EB-5 investor visa. Essentially, the derivative beneficiary or beneficiaries can’t begin claiming benefits or applying for permanent residency in the U.S. until after the main application and investment are made and approved.

The process is relatively similar for both the principal and derivative beneficiaries after making the initial investment and submitting the application.

The principal beneficiary must first apply for conditional permanent residency in the United States by completing and submitting Form I-526E, then Form I-485 to adjust status. Under the EB-5 Reform and Integrity Act of 2022 (RIA), eligible applicants who live in the U.S. can file these two forms concurrently.

Upon approval, the applicant obtains conditional permanent residency status in the U.S. that is valid for two years. As long as the conditions are met for the EB-5 visa, after two years, you can apply for permanent residency and have the conditions removed.

Then, if you desire, you can apply for citizenship after five years.

Derivative beneficiaries must also submit their own Form I-485 if they wish to pursue permanent residency. However, they have a few options regarding the timeframe in which they choose to submit the form.

Most commonly, EB-5 derivative beneficiaries file their Form I-485s at the same time as the principal applicant. This is usually the recommended method for a faster and smoother process.

However, derivatives can also file I-485 within six months after the principal applicant obtains permanent resident status. If they choose to file later than this, they must use the follow-to-join route. This principle applies to cases where a Green Card holder petitions to reunite with their dependent family members. An eligible family member may follow to join during the principal applicant’s two-year conditional residency period.

EB-5 Derivative Beneficiaries: FAQs

Can Divorced Couples Qualify as Derivative Beneficiaries?

If divorced before applying for conditional permanent residence, a principal beneficiary’s spouse will not be eligible to qualify as a derivative beneficiary. However, if the divorce occurs after acquiring conditional permanent residence status, it should not impact the spouse’s ability to proceed with the immigration process.

Can a Child Who’s Turning 21 Qualify as a Derivative Beneficiary?

Yes, but only if they follow a specified timeline. A child who turns 21 before filing Form I-526E is not eligible for an EB-5 visa as a derivative beneficiary. However, if they turn 21 after filing this form but before it is approved, they can still complete the process of becoming a derivative beneficiary. To do this, the child needs to start their adjustment of status (or consular processing) within a year after the I-526E is approved, so their age can remain “frozen” at the age when the form was initially filed.

What if I Need to Apply From Outside the United States?

The derivative beneficiary can apply for lawful permanent resident status outside the United States through consular processing. This entails applying through the local United States consulate in the country where you live. In special cases, dependents can also pursue follow-to-join, as explained above.

Dependents that are already in the U.S. in lawful status can adjust status from inside the country.

What Happens to Derivative Beneficiaries if the Principal Applicant Passes Away?

If the principal EB-5 applicant passes away during the two-year conditional permanent residency, their derivative beneficiaries can still remove conditions to become permanent residents (and eventually apply for U.S. citizenship.)

However, if the principal applicant dies before I-526E approval, their family members may need to withdraw their EB-5 application and re-file. There may be other options to pursue if the family members already reside in the U.S., so it’s best to consult an immigration attorney in these cases.

EB5AN Can Help Your Family Get Green Cards

Obtaining lawful permanent residence in the United States can be a complex process, where simple errors can impact your eligibility as a derivate beneficiary, delay your status, or affect your ability to remain in the U.S.

The good news is that you don’t have to do it all by yourself. EB5AN has helped over 2,300 families become lawful permanent residents in the United States through the EB-5 visa program, and we can do the same for you. Book a free call with our team today to start your family’s journey toward becoming U.S. Green Card holders.

The United States Citizenship and Immigration Services (USCIS) oversees the EB-5 Immigrant Investor Program. This program allows foreign individuals to invest in U.S. businesses and apply for Green Cards.

Investors can invest in a new commercial enterprise directly or via a regional center; this choice is entirely up to them. Within the EB-5 program, a regional center is an organization that USCIS designates to facilitate investments and help the local economy grow.

Audit of Regional Centers

Compliance reviews of regional centers have already been standard practice, but the EB-5 Reform and Integrity Act of 2022 (RIA) introduced a new audit requirement. USCIS made an announcement about this on April 9, 2024, and started the audit process on April 23.

The agency stated that “regional center audits enhance the integrity of the EB-5 program by helping us verify information in regional center applications and annual certifications as well as associated investor petitions.” This is to keep the EB-5 program trustworthy and ensure compliance with its rules. Under this provision, regional centers must be audited every five years.

USCIS’s Audit Process

The USCIS manages the audit process for each regional center on a case-by-case basis. Numerous factors can cause audit timelines to be different, such as the regional center’s average response time and any issues present in the audit processes.

Source: USCIS

Pre-Audit Intimation

USCIS sends an official notification letter to the selected regional center, initiating the audit process. The letter likely includes the audit’s scope and schedule. It also includes instructions on cooperating with the USCIS audit officials. This intimation ensures that the audit process goes smoothly.

In response to the USCIS’s request for an audit, the chosen EB-5 regional center needs to gather all the records needed by the INA. This includes everything from new and up-to-date financial records to ledgers.

During Audit

During these audits, USCIS checks the paperwork. They verify that investor funds go into the projects and evaluate how well the regional centers follow applicable laws. In addition, they conduct in-person interviews with the regional center’s management teams, staff, and other involved stakeholders. Besides assessing the regional center’s compliance with program requirements—such as creating jobs for U.S. workers—USCIS also looks at its capacity to attract and manage EB-5 investments.

Starting April 23, USCIS has standardized these evaluations. They use the Generally Accepted Government Auditing Standards (GAGAS), also known as the Yellow Book. These standards provide a method for conducting fair and thorough audits.

Auditors physically visit the regional centers to inspect them as part of the auditing process. If the regional center’s representative shows no interest in being present during an audit, USCIS can cancel the visit at any time. If this happens, USCIS will finish the audit report with the information they have access to, noting that the regional center asked for the site visit to be canceled. Moreover, a regional center can have its accreditation revoked if it does not cooperate with the audit or attempts to obstruct it.

Post-Audit

After an audit, USCIS sends a Notice of Audited Findings (NOAF) or a Notice of Intent to Terminate (NOIT) to the regional center. In these notices, USCIS explains what the audit revealed and gives the regional center a chance to respond to and settle any issues the agency raises.

The recently established EB-5 Regional Center Audits webpage provides detailed information regarding how regional centers can prepare for and participate in audits.

Findings of the Audit Process

As previously mentioned, the agency implemented the audit requirement in order to eliminate regional centers that do not adhere to the rules established by USCIS. By doing this, the U.S. government aims to protect foreign investors and the EB-5 program.

If the audit results are unfavorable for the regional center, this does not necessarily impact its designation status or the immigration procedures of foreign investors who have invested in projects the regional center has sponsored.

However, if a representative from a regional center refuses to follow the rules or tries to prevent USCIS from auditing its documents and operations, the agency will end the audit and write in its report that the regional center was not cooperative. The regional center may then lose its designation.

Stay Informed With EB5AN

It is essential that regional centers cooperate fully with USCIS throughout the audit process and take it seriously. Failure to comply with program requirements or to address issues raised during an audit could result in the termination of the regional center’s designation, which would have severe consequences for both the regional center and its investors.

By following audit requirements and staying transparent, regional centers can continue to attract foreign investors and support the integrity of the EB-5 program.

EB5AN owns over 10 EB-5 regional centers that cover the entire continental United States, and has helped more than 2,300 families from 60 countries relocate to the United States as lawful permanent residents. We offer our clients first-rate, low-risk EB-5 regional center projects with a 100% USCIS project approval rate to date.

Book a free consultation with our team today to learn how we can help you through every step of the EB-5 process.

Every year, the U.S. government sets aside a specific number of visas for each immigrant visa category under the Immigration and Nationality Act (INA). However, not all visas in one category may be used within a year, while other categories may have surplus applications. When this happens, the U.S. Department of State (DOS) redistributes the unused visas by carrying them over to the following year, and across different categories in some cases.

EB-5 visa carryovers can significantly impact investors by increasing the total number of visas available. Consequently, EB-5 applicants may receive their visas earlier, and the U.S. Citizenship and Immigration Services (USCIS) can speed up the EB-5 process.

Ideally, once an EB-5 applicant has filed the right petitions and met all the EB-5 investment requirements, they should be granted a U.S. Green Card, but this is not always the case. Other factors such as EB-5 visa availability may influence applicants’ chances of obtaining permanent residence in the U.S. Therefore, EB-5 investors should learn how unused EB-5 visas are reallocated and use this information to their advantage.

In this post, we will explain how EB-5 visas are allocated each year, what happens to unused EB-5 visas, and how this impacts the EB-5 program and the investors involved.

EB-5 Carryovers and Other Key Terms

To fully understand how EB-5 visa carryovers work, investors must be familiar with certain terms relating to EB-5 visa availability and the important dates leading up to the receipt of their Green Cards.

EB-5 Visa Carryovers

EB-5 visa carryovers are unused visas in a given year that get rolled over to the next year. DOS processes EB-5 visa carryovers to increase EB-5 visa availability, reduce backlog, and speed up EB-5 processing times.

Reserved Visas

To redirect investments to areas that need them the most, the U.S. government sets aside a percentage of EB-5 visas for specific targeted employment areas (TEAs), namely rural regions, high-employment areas, and infrastructure projects. The government encourages investments in these targeted areas by setting a lower investment threshold for them, as well as offering “reserved” visa availability, which especially benefits new investors from otherwise backlogged countries. This way, investors who apply for reserved visas have shorter waiting times than regular EB-5 processing times.

Unreserved Visas

EB-5 projects outside of targeted employment areas that do not qualify for reserved set-asides fall under the “unreserved” category. They take longer to process, and once the given annual limit is exceeded, affected investors would have to wait until their priority date becomes current again. This is where Chinese and Indian investors are currently facing backlogs.

Visa Bulletin

An investor’s priority date is when USCIS receives their Form I-526 or I-526E immigrant petition. This date is essential for the EB-5 investor as it marks their position in line for an EB-5 visa. When an EB-5 investor’s priority date falls before the final action date on the visa bulletin, it means that an immigrant visa is available for their use. However, priority dates that fall after the final action date exceed the EB-5 annual visa limit and a visa will not be issued until it becomes available.

Final Action Date

Final action dates are also indicated in the visa bulletin. It is the date when EB-5 investors who have an approved immigrant petition can expect to adjust status.

How Are EB-5 Visas Allocated?

There is an annual limit for employment-based visas, which also includes eligible dependents. Under the INA provisions, EB-5 visas account for around 7% of the total employment-based visas.

Of these visas, 32% are set aside for three categories of EB-5 applicants. Specifically, 20% are for applicants who invest in rural areas, 10% are for applicants who invest in areas with high unemployment, and 2% are for those who invest in infrastructure projects.

The remaining 68% constitute unreserved EB-5 visas.

How Are Unused EB-5 Visas Carried Over?

Within certain limitations, DOS may transfer unused visas from the family-based to the employment-based categories, including EB-5.

Unused visas within the same category may also be redistributed. For instance, where there are unused EB-1 visas, DOS may transfer them to another employment-based visa category, such as the EB-2 visa.

Impact of RIA

With the enactment of the Reform and Integrity Act of 2022 (RIA), new visa carryover provisions under the reserved categories were introduced. According to this, unused reserved visas from the fiscal year immediately prior will be rolled over to the current fiscal year within the same category. If these reserved carryover visas are not used within that fiscal year, either, then they will be carried over to increase the unreserved visa numbers.

This means that the reserved visas from FY 2022 were carried over to FY 2023. As FY 2023’s reserved visas also weren’t used in the same year, they rolled over to FY 2024. This translates into an unusually high number of EB-5 visas being available in FY 2024, including those made available in the unreserved category. If USCIS and relevant U.S. consulates and embassies in retrogressed countries can process these available visas efficiently, this relatively new EB-5 visa carryover policy may help ease current backlogs.

Start Your EB-5 Journey With EB5AN

The EB-5 Immigrant Investor Program is one of the most straightforward pathways to obtaining permanent residency in the U.S. However, the program often involves complicated details, leaving many investors frustrated and discouraged. This is why seeking guidance from experienced EB-5 professionals can help you through every step of the process.

To learn more about the EB-5 program, please feel free to book a free consultation with us.

The EB-5 Immigrant Investor Program has long been a popular pathway for foreign nationals seeking permanent residency in the United States through investment in a U.S. business venture.

The program, administered by United States Citizenship and Immigration Services (USCIS), was introduced by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign entrepreneurs. It enables non-U.S. citizens and their eligible dependent family members, i.e., the spouse and unmarried children under 21, to obtain lawful permanent residency in the United States, also known as the Green Card.

To be eligible for the EB-5 visa, applicants must invest a minimum amount in a new commercial enterprise and create at least 10 permanent full-time jobs for qualified U.S. workers. The standard EB-5 minimum capital investment is $1,050,000. However, for specific infrastructure projects and projects located in a targeted employment area (TEA), the minimum investment threshold is much lower at $800,000.

TEAs are areas designated by the U.S. government as regions requiring economic stimulation due to rural location or high unemployment rates. The EB-5 program aims to promote economic growth in these areas with investment capital and jobs, which is one of its main objectives.

In this article, we will explore the differences between the three investment options—rural TEA, high-unemployment TEA, and infrastructure projects. We will also understand how potential investors can accelerate their EB-5 process and the factors they must consider while selecting a TEA investment that best suits their immigration and financial goals.

Faster Immigration with Set-Aside Visas

Besides requiring lower capital, investments in rural areas, high-unemployment areas, and infrastructure projects also provide a faster immigration route to EB-5 applicants, as these investments are eligible for set-aside visas introduced under the EB-5 Reform and Integrity Act of 2022 (RIA).

Under the RIA, 32% of the total yearly quota of EB-5 visas are reserved as set-aside visas—20% for investments in rural areas, 10% for investments in high-unemployment regions, and 2% for investments in designated infrastructure projects.

This provision of the RIA offers an invaluable opportunity to applicants from high-demand countries, such as China and India, to avoid backlogs in the unreserved category. Investors from these countries often face years-long extended waiting times for their Green Cards as the demand far outnumbers the limited annual availability of EB-5 visas. With the new set-aside visa categories, they can potentially obtain a Green Card as soon as their EB-5 petition (Form I-526E) is approved.

As of now, there is no extra waiting time or backlog in the reserved categories. However, the supply of EB5 set-aside visas is limited, and these categories may also become oversubscribed. Investors considering an EB-5 investment must file their petitions without delay while the reserved visas are still available.

Each of these investments has unique risks and benefits for investors, as discussed below.

Rural Area Investments

To qualify as a rural area, an area must not have more than 20,000 residents, not border a city or town with a population of 20,000 or more, and not be located within a metropolitan statistical area according to the most recent 10-year census of the United States.

Investing in a rural TEA project has multiple advantages and is one of the best options for foreign investors to expedite their immigration journey.

Low Investment Amount

As mentioned earlier, rural TEA projects qualify for the reduced minimum investment amount of $800,000, which means considerable savings for investors at the outset.

Priority Processing

In addition, rural EB-5 investments are eligible for priority processing of Form I-526E by USCIS. Of all other EB-5 investment categories, rural TEA petitions are adjudicated first, ensuring the shortest processing time for rural EB-5 investors. Due to priority processing for rural projects, many EB-5 investors and their family members have been approved for U.S. Green Cards in a matter of months.

Maximum Reserved Visa Quota

Another key benefit of a rural TEA investment is that it qualifies for 20% of the annual EB-5 visa quota, the largest share among the three set-aside visa categories. As the demand for rural EB-5 projects has historically been lower than for high-unemployment TEA projects, the reserved quota under this category is expected to last the longest, reducing the chances of a backlog in this category.

Faster processing for rural EB-5 petitions is particularly advantageous for investors applying from outside the United States, as they often face longer waiting times than investors already in the United States. This is because investors in the United States on non-immigrant visas can benefit from the concurrent filing provision of the RIA.

While rural EB-5 investments are an excellent option for investors looking for fast visa processing, they also have some inherent risks, such as financial viability due to low population, unpredictability of construction costs, and difficulty in securing financing.

To increase their chances of immigrating successfully and getting their money back, EB-5 investors must research carefully and invest in profitable and fully financed projects executed by reputed developers.

High-Unemployment Area Investments

A high-unemployment TEA is an area that has an average unemployment rate of 150% above the national average at the time an investor files their EB-5 petition.

Historical Preference for High-Unemployment TEA Investments

Before the RIA introduced significant incentives for rural TEA investments, high-unemployment urban TEA projects dominated the EB-5 market. Typically, large real estate urban TEA projects developed by major companies were considered a safe option for EB-5 investors as they were often fully capitalized and had significant job creation.

Post-RIA, although there is an increase in the demand for rural TEA investments, urban TEA projects continue to remain popular among investors. Recent data from USCIS reveals that urban TEA projects are more than twice as popular as rural TEA projects.

Pros and Cons of Urban TEA Investments

Just like rural EB-5 investments, urban TEA investments are also eligible for reduced minimum capital criteria and set-aside visa quota.

However, as the set-aside visa allocation for high-unemployment TEA investments is only 10% of the total EB-5 visas, this category may soon become significantly oversubscribed and face long processing delays, especially for investors from China and India.

In comparison, rural TEA investments have a larger (20%) visa allocation, and with lower demand, the rural EB-5 visa category is not expected to face backlogs for a longer time. Because of this, for investors from high-demand countries, rural TEA investments could be a better option for faster immigration to the United States.

However, investors already in the United States on non-immigrant visas can opt for urban TEA projects as they will not practically be affected by the long waiting time in case of backlogging. Such investors can exercise the concurrent filing option to adjust their status.

Under the concurrent filing provision, investors are allowed to file their adjustment of status petition (Form I-485) along with their EB-5 petition, after which they can apply for work and travel permits. Within a few months, they can receive their work and travel authorization and enjoy Green Card benefits while their EB-5 petition is being processed.

Infrastructure Project Investments

The EB-5 infrastructure project investment is a new category created by the RIA in March 2022.

An infrastructure project is defined as one that is administered by a federal, state, or local government entity and involves the development of a public works project. This new category aims to support infrastructure development projects across the United States.

Investments in qualifying public infrastructure projects are eligible for the reduced investment amount criteria of $800,000 and have access to 2% of the annual EB-5 visa quota as reserved visa set-asides.

However, this category only applies to immigrant investors who file EB-5 petitions through regional centers.

Infrastructure project investments being a relatively new category, there is still some ambiguity about the eligibility criteria for projects. The demand for this category is low, with only a few projects qualifying under the infrastructure classification.

Contact EB5AN for More Information

Both rural and urban TEA projects offer an excellent opportunity for investors to fast-track their immigration journey at a lower investment cost. Even so, each investor has unique needs, and EB5AN can help you find the right project for your individual immigration and financial goals.

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

For more information on TEA investments, please book a free call with our expert team today.

Many businesses face difficulties in securing loans or investments from traditional sources like banks or venture capitalists. The EB-5 program provides a solution to this capital challenge by facilitating foreign investment in U.S. businesses.

The EB-5 program is a U.S. immigration program that grants permanent residency (Green Card) to foreign investors who meet specific criteria. Investors must invest either $1,050,000 or $800,000 (in a targeted employment area) in a new commercial enterprise that creates at least 10 full-time jobs for U.S. workers.

Investors and their immediate family members receive a conditional green card valid for two years initially, then become permanent residents of the U.S. if they fulfill various U.S. Citizenship and Immigration Services (USCIS) requirements.

While this program offers many financial and immigration benefits to investors, it can also help project developers. In this article, we will explore the benefits of EB-5 funds for developers.

Benefits of EB-5 Funds for Developers

The EB-5 program provides developers with a significant capital injection, enabling them to secure the necessary funds for large-scale projects that might otherwise be challenging to finance through traditional means. Here’s how this influx of capital benefits developers seeking to launch projects.

Flexibility

Even though EB-5 capital isn’t always much cheaper than regular debt, it comes with fewer rules and restrictions. Through EB-5, developers can also get better financial terms since foreign investors tend to prioritize immigration benefits over return on investment.

Additionally, repayment periods tend to be longer, giving developers more breathing room for project completion and cash flow generation. The non-recourse structure of EB-5 investments protects the developer’s assets in case of default, offering greater financial security compared to traditional loans.

Global Funds Reach

Investors can use a wide range of lawful funds, including salaries, business profits, real estate sales, inheritances, and even gifts. This global reach attracts investors from various backgrounds, expanding the potential pool of capital. EB-5 projects can potentially secure capital from hundreds or even thousands of individual investors. This diversification reduces the risk associated with relying on a single or limited number of funding sources, enhancing financial stability and mitigating the impact of any potential investor defaults or withdrawals.

Expedited Funds

EB-5 capital expedites the visa process for foreign investors, injecting funds quickly. This streamlines project execution, shortening timelines compared to traditional financing methods. Faster project completion also leads to quicker market entry, potentially securing a first-mover advantage. This can lead to market share capture, higher profits, and a strong competitive edge in the industry.

Increased Credibility

EB-5 projects undergo a meticulous vetting process by USCIS to ensure compliance with program regulations. This scrutiny involves examining the project’s financial viability, job creation potential, and adherence to TEA requirements, if applicable. Successfully navigating this process demonstrates the project’s overall soundness and strengthens the developer’s reputation.

Attracting foreign investors through EB-5 means that many people from different backgrounds find the project promising and worth investing significant capital in, hoping to get U.S. residency in return. This validation adds a layer of credibility to the developer’s capabilities and the project’s potential.

EB-5 Funding for Real Estate Development

There are many types of projects that can qualify for EB-5 funding, with a wide range of industries represented. However, real estate developers typically use EB5 capital the most.

Real estate development boasts a natural synergy with EB-5 funding due to its inherent job creation potential. Projects like mixed-use developments, hotels, and office buildings tend to require significant construction and ongoing operational staff, directly translating investment into job opportunities.

Infrastructure improvements also often accompany development projects. New roads, utilities, and public spaces can revitalize areas, attracting residents and businesses and further stimulating job creation within the surrounding community.

For instance, hotel development in a growing tourist destination not only creates construction and hospitality jobs but also drives demand for ancillary services like transportation, restaurants, and retail. These indirect and induced jobs may count toward the EB-5 job creation requirement in the case of regional center investments.

Due Diligence and Marketing

The core EB-5 requirement is job creation: the project must generate at least 10 full-time jobs for U.S. workers within a designated timeframe (currently two years). Additionally, the project must be a new commercial enterprise (NCE) established after November 29, 1990, or an existing business undergoing significant restructuring that increases its net worth or employee count by 40%.

Thorough due diligence is key for developers using EB-5. This involves preparing a comprehensive offering document outlining the project details, financial projections, job creation plan, and potential risks. Transparency and clear communication are very important when it comes to building trust with potential investors.

Marketing strategies should target the specific investor profile aligned with the project. Attending industry events, collaborating with investment firms specializing in EB-5, and using digital marketing tools are all effective ways to reach the desired audience.

For instance, a developer planning a resort project in a rural area can leverage the TEA designation to attract investors with a lower investment threshold of $800,000. Partnering with a reputable regional center experienced in the industry can provide access to a network of pre-qualified investors and streamline the fundraising process.

Seeking the help of experienced EB-5 professionals is crucial to ensure project compliance with all regulations and maximize the chances of successful capital raising through the program.

Get Started with EB5AN

EB-5 funding offers a powerful tool for developers seeking capital to fuel their projects. By providing access to significant investment opportunities, the program facilitates the realization of diverse projects across various industries.

While the EB-5 landscape is subject to ongoing modifications and potential legislative changes, its core principles of promoting economic growth and job creation through foreign investment remain a valuable asset for developers seeking innovative funding solutions.

If you would like to learn more about how to use EB-5 funds to your advantage as a developer, book a call with us today.

Private Placement Memorandums (PPMs) are legal documents issued by entities seeking funding. They provide these documents to potential investors so that they can make informed investment decisions. Unlike a business plan, the PPM is a descriptive document that details a company’s overall business structure, the nature of the investment offering, relevant financial data, and the investment’s associated risks.

PPMs are commonly used to facilitate funding for startup businesses and real estate projects, including any EB-5 new commercial enterprise (NCE). For such investment ventures, the U.S. security laws do not enforce the full securities registration process, to enable project developers to raise investment capital at a lower rate. While the relaxed securities regulations may speed up the fundraising process for developers, they expose investors to higher risk, which requires the issuance of PPMs.

In this article, we will outline the purpose and components of typical PPM documents in the EB-5 context.

What Is the Purpose of a PPM in EB-5 Investments?

A private placement memorandum is of some value to all the stakeholders in an EB-5 investment. As we highlighted earlier, it provides the investor with all the information they need to decide whether a proposed investment meets their financial objectives.

The PPM discloses any potential risks associated with the investments. It also outlines how investments comply with U.S. immigration and securities laws, ensuring investors of their legality.

As for the project developer or regional center, who may also be the issuers in this context, a detailed PPM will boost investors’ confidence and speed up the fundraising process. Furthermore, the PPM shields EB-5 project developers from liability for non-disclosure since the document contains proof that the issuers disclosed all relevant information to investors.

EB-5 professionals like lawyers and financial advisors also use the PPM because it clearly explains the unique chances and risks of each project. The detailed information helps them do their jobs better, from conducting market research to ensuring due diligence at every stage of the project.

What Are the Components of a Comprehensive PPM for EB-5 Investments?

A comprehensive EB-5 PPM must have certain components and disclose specific information about the EB-5 investment. These include the following:

Executive Summary

The executive summary features a short overview of the PPM, providing investors with a quick and clear understanding of the document’s content. It should include a summary of the investment project, the type of investment, and its structure. The executive summary could also include any important legal disclaimers, such as the non-guarantee of immigration benefits and investment returns.

Business Plan

The business plan section of the PPM provides more in-depth information on the nature, purpose, location, and direction of the investment project. It outlines the investment history, objectives, and project development timeline. EB-5 PPMs should specifically include information on how the investment can fulfill the U.S. Citizenship and Immigration Services (USCIS) job creation criteria and minimum investment amounts.

The business plan should also indicate how the business will function daily and the management team responsible for ensuring its smooth running.

Financial Information

A comprehensive PPM should feature detailed accounts of the use of investment funds.

This includes summarized financial statements that disclose accurate information on revenue, expenditures, profits, and business cash flow projections.

This section should also include information on the business’s capital structure, such as the total investment required for the EB-5 project and the amount already acquired.

Risk Factors of the Investment

Investors and other stakeholders in the EB-5 investment rely on the PPM for risk assessment purposes. This is why a PPM must detail all the potential risks of the investment, from business risks, such as potential competition, to financial risks and immigration risks.

Terms of the Investment

This section informs investors of the basic conditions for participating in an EB-5 project. It should also cover the terms of the investment, such as the minimum investment amount required from each investor. The terms section of the PPM should also inform investors of the mode of investment, whether equity-based or loan-based, as well as the issuer’s preferred subscription procedures.

In addition, this part of the PPM usually features the rights and obligations of the issuers and investors to one another and a viable exit strategy. Conditions regarding repayment, redeployment, and I-526E approval refund guaranty may also be included in the PPM.

Legal Compliance

The project developers must outline how they intend to ensure the legality of the EB-5 investment. The PPM must disclose that the EB-5 project is in compliance with the regulations of USCIS and the U.S. Securities and Exchange Commission (SEC).

Do EB-5 Investors Need a PPM?

While USCIS does not mandate PPMs from EB-5 investors, most of the components of the legal document are required. For instance, USCIS requires a business plan, along with evidence that the investment meets the minimum amount and will create the required number of jobs. This is why having a PPM is highly recommended; it allows investors to organize all the required paperwork into one comprehensive document.

In summary, showing a PPM to USCIS facilitates the review process, increasing investors’ chances of having a successful EB-5 process. It also ensures that investors comply with U.S. securities laws as enforced by the SEC, which are just as important as the U.S. immigration laws.

Seek Guidance from Industry Experts

PPMs are primarily issued to investors. However, investors alone usually cannot analyze and apply the information without consulting EB-5 professionals. After receiving your PPM, it is advisable to review it yourself first, then consult experts to determine whether the investment is viable.

This is where EB5AN comes in. Our team of professionals comprises industry leaders in the EB-5 space who have helped over 2,300 families obtain permanent residency status in the U.S.

If you would like to learn more about how to review PPMs or other EB-5 services we offer, please book a free consultation with our expert team today.

Foreign nationals located in the United States can use Form I-485, Application to Register Permanent Residence or Adjust Status, to change their immigration status to permanent resident. This allows them to receive Green Cards under one of several USCIS eligibility categories.

However, this is easier said than done. The process can be complicated. Applicants must keep track of many documents, fill out required forms correctly, and file them on time.

United States Citizenship and Immigration Services (USCIS) accepts most of the I-485 petitions it receives, but it still denies thousands of them every year. During the last quarter of 2023, USCIS rejected nearly 12% of the I-485s it received from applicants under the employment-based immigrant category.

You don’t want your application to be one of those.

In this article, we will provide checklists and explanations to help ensure your Form I-485 includes everything it needs for the best chance of approval.

Check Your Eligibility

The main EB-5 investor is called the principal applicant. This person typically invests in a new commercial enterprise that will eventually create at least 10 full-time jobs for American workers. This person also files Form I-485 and other required documentation.

A principal applicant who fulfills all of the EB-5 program’s requirements receives lawful permanent resident status for themselves and eligible family members.

But before you can apply to adjust your immigration status, you must meet a series of USCIS requirements, which include:

• Having an approved immigrant petition (Form I-526 or I-526E).
• Having an available visa number, per the USCIS Visa Bulletin.
• Being physically present in the United States.
• Never having entered the United States illegally.
• Not falling under certain grounds of inadmissibility without a waiver.

Let’s explore some additional requirements to change your lawful status.

An I-485 Checklist

Key Immigration Information You’ll Need

• Alien registration number (if applicable).
• Passport (even if expired).
• I-94 Arrival/Departure Record.
• Receipt number (if you have a pending or approved I-130 petition).
• Address history from the past five years.
• Employment history from the past five years.
• Marriage and divorce dates for any previous marriages.
• Information about organizations you have been involved with.

Other Forms to File with Form I-485

Many EB-5 investors find it necessary or desirable to file additional forms with their I-485s. These may include.

• I-130, Petition for Alien Relative.
• I-130A, Biographic Supplement (for a spouse).
• I-864, Affidavit of Support.
• I-693, Report of Medical Examination and Vaccination Record.
• I-765, Application for Employment Authorization (optional).
• I-131, Application for Travel Document (optional).

Gather Required Documentation

A successful I-485 applicant must provide the right evidence and supporting documents to USCIS. These include:

1. Government-issued photo ID: Typically copies of your passport pages or a copy of a driver’s license. Military identification also may be accepted.
2. Photos: Two identical passport-style photos (glossy, unedited, and printed on a white or off-white background) that were taken no more than 30 days before you submitted your I-485. Be sure you specifically requested that passport photos meet these criteria before submitting.
3. Birth and marriage records: Copies of your long-form birth certificate, marriage certificate(s), and divorce certificate(s), if applicable. If your birth certificate is not available, submit proof of its unavailability.
4. Form I-94 or alternative immigration documents: Include documentation proving you were inspected by an immigration officer and admitted or paroled into the United States. Provide copies of passport pages with visa stamps or a copy of your Form I-94 Arrival-Departure Record.
5. Form I-526/I-526E or Form I-797: You need to present one of these forms to show that you are eligible to adjust status under a particular immigrant category. If you file Form I-485 concurrently with your I-526/I-526E immigrant petition, include a copy of the I-526/I-526E. Otherwise, include a copy of Form I-797, Approval or Receipt Notice. This is the official notification that shows USCIS received your immigrant petition.
6. Criminal history documentation: Certified records of your court, police, charge, and conviction history, if applicable.
7. Medical documentation: Vaccinations and other medical records, including Form I-693, Report of Immigration Medical Examination and Vaccination Record, signed by a USCIS-designated civil surgeon. This is valid for two years from the signature’s date.
8. Biographic information: Each eligible immediate relative should complete and file Form I-130, Petition for Alien Relative.
9. Biometrics: USCIS may request your fingerprints, photos, and/or your signature at a biometrics appointment, which it will schedule with you later.

When it comes to I-485 approvals, it’s not just what you do that matters.

What you don’t do is equally important. Ensure you haven’t engaged in conduct that could get your application denied.

Beware of These Disqualifying Conditions

The main “inadmissibility grounds,” as described in the Immigration and Nationality Act, that can disqualify an I-485 petitioner fall under these buckets

• Criminal Activities: Such as serious crime convictions.
• Security Concerns: Indications of posing a threat to U.S. national security.
• Legal Issues: Violations of U.S. immigration law.
• Health Problems: Such as carrying a dangerous infectious disease.
• Miscellaneous: Other issues at the discretion of USCIS.

If you think one or more of these categories applies to you, be sure to speak with an experienced immigration attorney before filing. Waivers may be possible in some cases.

Use the Right Mailing Address and Enclose the Right Filing Fee

You must mail a copy of your I-485 petition with the correct filing fee ($1,440, effective since April 1, 2024) in a sealed envelope to the correct USCIS lockbox.

A lockbox facility collects documents and filing fees. This facility also determines whether your application will move forward based on the amount paid. If your application is rejected at this stage, you probably enclosed the wrong fee.

EB-5 investors should send their I-485s to the address below that corresponds to the delivery service used. Check the list of USCIS direct addresses for the latest guidance before filing your form.

USCIS Dallas Lockbox

U.S. Postal Service (USPS)

USCIS
Attn: I-526/E
P.O. Box 660168
Dallas, TX 75266-0168

FedEx, UPS, and DHL Deliveries

USCIS
Attn: I-526/E (Box 660168)
2501 S. State Highway 121 Business
Suite 400
Lewisville, TX 75067-8003

Why Concurrent Filing Is a Good Idea

Foreign nationals physically present in the United States on non-immigrant visas should strongly consider concurrent filing of Form I-485 and Form I-526E.

Made possible because of the EB-5 Reform and Integrity Act of 2022, concurrent filing is a good idea because it saves investors time. It allows them to get their conditional Green Card faster, including the associated benefits of lawful permanent resident status.

Foreign investors and their families are also eligible for improved work and travel flexibility while their I-485s are being adjudicated.

If you need a work permit, file Form I-765, Application for Employment Authorization. Filing this means you can get an Employment Authorization Document.

You may also wish to obtain a travel permit, also called an advance parole document. This lets a noncitizen travel outside of the country temporarily and come back to the United States with minimal hassle.

Other Form I-485 Best Practices

You can improve your chances of avoiding delays or denial by following these tips in completing your I-485 petition:

• Understand and ensure you meet all eligibility criteria for adjustment of status.
• Confirm you are using the most recent edition of Form I-485 (released on February 21, 2023).
• Read the filing instructions carefully.
• Ensure your answers are full and accurate.
• Type your responses or write them out neatly in black ink.
• Review this checklist of required initial evidence.
• Work with an experienced immigration lawyer to draft and submit the I-485.
• Respond to any USCIS requests for evidence promptly.
• Work with an experienced immigration attorney to draft the I-485 and address any legal issues that may arise related to your case.

While you await approval of your application, you should maintain your lawful status in the United States and monitor USCIS announcements for any updates to the process.

It’s also a good idea to make copies of your entire application, supporting documents, and receipts.

Check with EB-5 Experts Before Filing

Checking all the boxes on your I-485 application is only one part of a longer EB-5 process that may last a while, depending on your nationality and visa category. You must do more than understand the adjustment of status document checklist to receive Green Cards for yourself and qualified immediate relatives.

Don’t take the risk of getting your application denied by trying to do this on your own. Instead, be sure to work with seasoned professionals. They can give your full application the best chance of approval.

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

If you have questions about anything connected to the EB-5 Immigrant Investor Program, do not hesitate to book a free call with us.

In the late 80s, when the U.S. economy struggled, lawmakers explored new ways to revive it. Around this same time, it had become popular for governments to boost commercial activity in their countries by attracting global talent and foreign investments. After observing the potential benefits of this strategy, Congress adopted the investment immigration option, which we now know as the EB-5 Immigrant Investor Program.

The EB-5 program provides a pathway for foreign investors to obtain permanent residency in the U.S., if they satisfy the EB-5 eligibility requirements regarding investments and job creation quotas. The EB-5 initiative works because both parties benefit from it: the U.S. boosts its economic growth while foreign nationals obtain permanent residency.

However, the EB-5 program has its pain points, and over the years, Congress and other stakeholders have sought several ways to improve its effectiveness. In this article, we will break down the EB-5 program history and explore the development of the program from its inception until now.

How Did the EB-5 Program Start?

Between the late 1980s and early 1990s, the U.S. experienced an economic decline due to high inflation and other tight monetary policies. As a result, the country faced rising unemployment rates, urging the U.S. Congress to enact new policies to improve the situation.

One such policy is the EB-5 visa program, which Congress enacted through the Immigration Act of 1990. The immigration initiative was the perfect match for the economic situation in the U.S., aiming to create more job opportunities and promote infrastructure by encouraging foreign investments.

The EB-5 Program Timeline

The success of the EB-5 program is largely due to several regulatory adjustments made by the U.S. Congress and other immigration regulators. This section will feature a comprehensive analysis of the program’s issues and the reforms put in place to maintain its economic relevance.

Inception to Late 1990s

When the U.S. Congress launched the EB-5 visa program in the 1990s, foreign investors’ participation was relatively low. This was primarily due to the significant capital investment amounts needed and other complex regulatory requirements of the program.

To encourage EB-5 investors, the U.S. immigration regulators introduced the EB-5 Regional Center Program in 1992. Regional centers are entities designated by the U.S. Citizenship and Immigration Services (USCIS) to facilitate investments on behalf of foreign investors.

The new entities made the EB-5 pathway to permanent residency more accessible, being able to rely on regional center teams to navigate the EB-5 program’s regulations.

The regional center concept successfully increased investors’ participation in the initiative and drove employment opportunities in targeted employment areas (TEA) through direct and indirect job opportunities.

However, the initial EB-5 program model was also vulnerable to fraud and misuse. In the high-profile fraud case of the U.S. District Court v. O’Connor, the defendants falsified bank transactions, claiming that investors had met the EB-5 program’s investment requirements. To combat this issue, USCIS and the Administrative Appeals Office (AAO) enforced more stringent regulations to ensure EB-5 investments were legally funded.

Following the new reforms, the AAO used specific examples to ensure decisions were consistent and the new rules were applied correctly. The following four cases, in particular, were critical in defining the structure of the EB-5 visa program in operation today:

• Matter of Ho: The case informed the USCIS regulations on the EB-5 job creation criteria. The ruling emphasized the need for comprehensive and feasible business plans to meet the EB-5 job creation requirements.
• Matter of Izummi: In this case, the court highlighted the need for investors to be involved in managing their EB-5 projects. The case reinforced the “at-risk” requirement of EB-5 programs, clarifying that only projects subject to profit or loss will be valid EB-5 investments.
• Matter of Hsiung: The decision in this case stressed the EB-5 program requirement that all investment funds must belong to the investor(s) and be obtained legally.
• Matter of Soffici: This case supports the Matter of Ho, specifying that EB-5 investments must create employment for at least 10 full-time U.S. workers, among other key decisions.

The EB-5 Program in the 2000s

In 2005, USCIS established the Investor and Regional Center Unit (IRCU) to enhance the management of the EB-5 regional centers. The new regulatory body worked to improve the integrity of the EB-5 program by streamlining the process and ensuring better compliance with its regulations. By this time, the EB-5 program had become more popular, with more foreigners gaining confidence in the effectiveness of the EB-5 pathway to U.S. residency.

The 2012 EB-5 Reform

By 2012, demand for EB-5 applications had increased vastly. However, immigration regulatory bodies struggled to keep up with the scale and complexity of investors’ applications. In addition, fraud and mismanagement were still rampant within the EB-5 industry, requiring stricter policies and more reforms by USCIS.

In response to these issues, USCIS introduced the annual reporting requirement for regional centers and released memoranda clarifying previous EB-5 regulations for better implementation of the program. The immigration agency also worked to increase engagement with investors to address their concerns and improve EB-5 investment transparency.

2015 – 2019: Major Policy Changes in the EB-5 Program

From around 2015, the U.S. Congress began to introduce new bills to modernize the EB-5 Immigrant Investor Program. By the end of 2019, these legislative changes took effect, representing one of the most significant reforms to the EB-5 program since its inception.

The updated EB-5 legislation included an increase in the minimum investment amount from $1 million to $1.8 million, and $500,000 to $900,000 for targeted employment areas.

Furthermore, the new rules modified the criteria for designating targeted employment areas and authorized the Department of Homeland Security (DHS) to designate them. The objective here was to ensure a fairer distribution of benefits across rural and urban areas and channel investments to areas that needed it the most.

Relapse of the Regional Center Program in 2021

The Regional Center Program is subject to periodic renewals by Congress. The existing Regional Center Program was set to expire on June 30, 2021. However, stakeholders felt the need to modify the program before reauthorizing it.

Unfortunately, Congress could not agree on what legislative adjustments to include in the new reform, further delaying the passage of a reauthorization bill. The bill was not passed by the given deadline, resulting in the lapse of the Regional Center Program.

Consequently, new and ongoing EB-5 applications were suspended indefinitely, causing significant disruption of the EB-5 processes for many investors.

Reinstatement of the Regional Center Program in 2022

In 2022, Congress worked out a more stable framework for the EB-5 program by enacting the EB-5 Reform and Integrity Act of 2022. The new act aimed to combat fraud by enforcing stricter auditing and reporting requirements for direct investors and regional centers.

Also, the act authorized a new Regional Center Program that will last until September 30, 2027, with the new minimum investment threshold of $1,050,000 (and 800,000 in targeted employment areas). The idea was to reinstate an extended Regional Center Program to provide more stability to EB-5 investors and ensure the initiative’s sustainability. In addition, the act included provisions that shorten EB-5 processing times and offer various benefits to new investors.

The Current State of the EB-5 Program

There have been more adjustments in the EB-5 framework since 2022. In 2023, USCIS changed the status of approximately 100 rural TEA and metropolitan statistical area designations across the nation. Most recently, the agency’s fee hike of April 1, 2024, increased the filing fee of Form I-526E to $11,160.

There are also ongoing discussions about the agency’s policies, including the EB-5 investment sustainment period update.

Prospective investors are encouraged to follow industry updates closely to stay informed about EB-5 visa developments and recent trends.

Achieve EB-5 Success with EB5AN

The numerous adjustments to the EB-5 program have resulted in a reliable pathway to obtaining permanent residency in the U.S.

However, like all other immigration processes, this one can also be complex, so investors should plan for challenges in their EB-5 journey. After you’ve chosen the EB-5 route to U.S. residency, the next step should be to contact professionals in the industry.

EB5AN has successfully facilitated the EB-5 process for over 2,300 families. Our team of experts includes highly experienced EB-5 specialists who can guide you in achieving financial and immigration success.

If you would like to learn more about the EB-5 program, please schedule a free consultation today.