A biometrics appointment is an important part of the EB-5 visa process. The U.S. Citizenship and Immigration Services (USCIS) collects applicants’ biometric data, including fingerprints, photographs, and digital signatures. The main purpose of this appointment is to verify applicants’ identities and conduct necessary background checks to ensure they are eligible for the immigration benefits they seek.

USCIS collects applicants’ biometric data to improve the security and integrity of the immigration process. This also ensures that EB-5 applicants meet program standards, including verifying the source of investment funds and maintaining a clean record.

Learning about the biometrics process helps applicants manage their expectations and plan accordingly. This includes knowing what forms of identification are needed, the type of biometric data that will be collected, and any associated fees.

In this post, we will provide information that can prepare EB-5 applicants for their USCIS biometrics appointment.

What Should You Bring to Your USCIS Biometrics Appointment?

While preparing for a USCIS biometrics appointment, there are certain essentials EB-5 applicants need to be aware of. These include:

Required Documents

EB-5 applicants are usually required to have certain documents when going to their biometrics appointments. This includes the appointment notice usually communicated through Form I-797C, Notice of Action, which specifies the date, time, and location of the biometrics appointment. Applicants may also need to tender any government-issued photo identification, such as their passport or driver’s license.

Besides these key records, USCIS could request additional documents in the appointment notice that may aid the applicant’s biometric capturing.

Dress Code and Appearance

While there are no strict attire rules, EB-5 applicants are advised to wear simple, formal clothes for their biometrics appointment. Applicants are permitted to wear head coverings for religious purposes as long as their faces remain visible.

What Steps Are Involved in a USCIS Biometrics Appointment?

In this section, we will discuss the stages of the USCIS biometrics appointment for EB-5 applicants.

Receiving the USCIS Appointment Notice

At various stages of the EB-5 process, USCIS may schedule a biometric services appointment at an Application Support Center (ASC). The EB-5 applicant will receive an appointment notice by mail, which provides important details on their biometrics process.

The appointment notice may also include specific documents the agency needs from applicants.

Rescheduling Your USCIS Biometrics Appointment

Applicants may reschedule their biometrics appointment if the given appointment does not work for them. To do this, they need to submit their request through their USCIS online account or by calling the USCIS Contact Center at 800-375-5283. USCIS will not grant rescheduling requests made via mail.

Reschedule requests should be made as early as possible, ideally well before the appointment date.

Arrival

The appointment notice sent to the applicants states the time of their biometrics appointment. It is advisable to arrive 15-30 minutes early to allow time for check-in and security procedures.

Security Screening

Upon arrival at the ASC for a biometrics appointment, applicants will pass a security check. This is similar to security screenings at airports or federal buildings. Applicants will also present their appointment notice and government-issued photo ID to the security personnel or front desk staff.

Following initial processing, applicants will proceed to a security checkpoint. This may involve walking through a metal detector, undergoing an X-ray machine inspection, or a physical pat-down screening. Items not allowed in the facility include weapons, explosives, dangerous chemicals, food, and beverages.

Applicants may bring electronic devices such as phones, laptops, and tablets, but they must silence them while in the waiting area. They must switch off their phones while the USCIS staff is attending to them.

Biometrics Collection Process

After the security screening, USCIS staff will guide the applicant to a biometrics technician. At this stage, the technician will collect the applicant’s biometric information, including fingerprints, digital photographs, and digital signatures. This process also includes a declaration confirming that the information provided in the immigration documents was true at the time of filing.

EB-5 applicants who are 14 years old or older will provide a signature on any application filed with USCIS. Although children under the age of 14 are not required to provide a signature on any application, they may choose to sign their name during the ASC appointment if they can. A parent or legal guardian may also sign the application on the child’s behalf.

In total, a USCIS biometrics appointment typically lasts between 15-20 minutes. However, applicants may have to wait their turn if there are many others scheduled ahead of them at the ACS.

What Should You Do After Your Appointment?

Once the biometrics appointment is complete, applicants will receive a stamp or notation on their appointment notice as proof of completion. To prepare for the next phase of their EB-5 visa process, here are a few things EB-5 applicants can do.

Keep Proof of Attendance

Keep the stamped appointment notice or any confirmation provided by USCIS as proof that you attended the biometrics appointment.

Track Case Status

You can regularly check the status of your application online using the USCIS case status tool. Doing this will help you stay informed about any updates or extra steps required.

Respond to Any Requests

If USCIS sends any requests for more information or documents, respond quickly to avoid delays in processing your application.

Prepare for Possible Follow-Up

In some cases, USCIS may need extra biometrics or follow-up appointments. Be prepared to attend if notified.

Stay Updated

Keep your contact information current with USCIS so that you will receive all communications about your application.

Who Can You Bring to the Appointment?

While not required, there are cases where EB-5 applicants may bring an attorney or accredited representative along. For instance, if the applicant has any complexities in their documentation or legal history, they can retain an attorney to provide guidance and ensure that the paperwork is in order.

Applicants with disabilities may bring a caregiver or family member to help them through the process. They can also request disability accommodation or call the USCIS Contact Center for assistance.

Also, applicants who are not fluent in English can bring an interpreter to their ASC appointment if the center does not provide translators. Friends and family members who are not critically needed should not follow the applicant inside the biometrics facility. They may wait outside the building or in a waiting area, if available.

How EB5AN Can Help

The collection of biometric data is an important step, and missing the appointment or failing to provide the required documents can extend the EB-5 visa process unnecessarily. That’s why it’s advisable to consult an immigration attorney to provide professional guidance, double-check details, and help clarify any confusing requirements.

You can also book a free consultation with EB5AN to get professional assistance from leading EB-5 experts in the U.S.

Foreign nationals looking to obtain Green Cards often worry about how long the process can take, and for good reason. Historically, the EB-5 visa— along with other employment-based visa categories—was affected by long processing times and immigration delays. However, the process continues to get shorter for new investors considering the EB-5 program.

Prior to 2022, EB-5 processing times could take several years. Now, thanks to the EB-5 Reform and Integrity Act of 2022 (RIA), the industry is seeing Form I-526E approvals in under 12 months.

In this article, we’ll delve into the reasons behind the updated processing times. We’ll also discover how they affect the EB-5 process and discuss how selecting a low-risk rural EB-5 project can help investors get their Green Cards faster.

Rural Investments Speed Up I-526E Approvals

The EB-5 Reform and Integrity Act of 2022 (RIA) has designated 32% of the annual EB-5 visa quota for targeted employment area (TEA) projects. This includes:

• 20% for rural TEAs
• 10% for high-unemployment TEAs
• 2% for infrastructure projects

Rural area investments play a significant role in speeding up applications due to the benefits of set-aside visas and the unique priority processing opportunity.

Set-Aside Visa Quota

RIA brought about a number of modifications, including set-aside visa quotas. These quotas have positively impacted processing delays.

By investing in targeted employment areas, foreign nationals can avoid the long queues that typically occur in the unreserved category due to visa availability issues. As of June 2024, for “legacy” I-526/I-526E petitions before 2022, the estimated processing time announced on the United States Citizenship and Immigration Services (USCIS) website is 54 months.

There is less competition for the relatively new reserved visas, and no visa backlogs at the time of writing. This streamlined process not only accelerates the path to I-526E approval but also provides a more predictable timeline for obtaining U.S. permanent residency.

With years-long wait times now down to a few months, the set-aside visas have proven to be a game-changer. This particularly applies to investors from nations with significant demand, such as China and India.

Although all set-aside visas are still in current status, they can get oversubscribed quickly. Since RIA was enacted, investors’ interest in the EB-5 program has increased, leading to a rising number of applications. Interested investors are advised to apply promptly to avoid any delays or possible backlogs in the reserved categories.

Priority Processing

The EB-5 program focuses on funding underserved areas through foreign investment. To encourage such investments, USCIS offers a strong incentive by processing petitions for these areas earlier than others. This is how RIA’s priority processing provision for rural TEA projects leads to quicker I-526E approvals for foreign nationals.

Can Concurrent Filing Get Foreign Investors Their Green Cards Faster?

Through the EB-5 concurrent filing opportunity, foreign investors can simultaneously file their Form I-526E and Form I-485 petitions. To qualify, applicants must hold a valid non-immigrant visa and be in the country at the time of filing. Before concurrent filing was introduced with RIA, foreign investors could only file Form I-485 after I-526E approval. This provision can speed up the Green Card application process by eliminating the need to wait separately for each petition.

Investors can also apply for an employment authorization document (EAD) and advance parole (AP) at the same time. This allows them to work in the U.S. and travel internationally while their petitions are being reviewed. With this, investors and their qualifying family members can begin enjoying the benefits of U.S. residency sooner.

Investing in Low-Risk Regional Center Projects Can Help

The majority of EB-5 applicants choose to invest in regional center-sponsored projects, which is an easier way for investors to fulfill the EB-5 requirements when compared to direct investments. Under the regional center program, designated regional centers must get pre-approvals from USCIS for each project they offer. Thanks to these exemplar approvals, investor petitions can be processed more quickly, shortening the time it takes USCIS to examine and approve the project.

Furthermore, most reliable regional centers are run by seasoned experts who are knowledgeable about the EB-5 program’s standards. This means the projects they are offering are more likely to adhere to laws and regulations, which lowers the possibility of delays stemming from compliance issues.

Choosing a low-risk rural EB-5 project also increases applicants’ chances of investment success, mitigating the risk of losing time on issues like redeployment, requests for evidence, or litigation.

Start Your Immigration Process With EB5AN

With immigration reforms and policy updates, USCIS aims to ensure a fair and practical system for the EB-5 program. However, there are still many technicalities involved in the process, which requires expert guidance. Figuring out the best methods to follow when planning on immigrating through EB-5 can be a daunting process because every investor has a unique situation, despite a common goal.

That’s where EB5AN comes in. We have assisted more than 2,300 families from 60 countries in relocating to the United States as lawful permanent residents. With over a decade of expertise, our team provides clients with top-tier, low-risk EB-5 regional center projects, boasting a perfect USCIS project approval record to date.

To take advantage of the shorter EB-5 processing times and get Green Cards for you and your family, schedule a free consultation with EB5AN today.

EB-5 investors can apply for a Green Card once their I-526 or I-526E petition is approved by the United States Citizenship and Immigration Services (USCIS).

EB-5 investors already in the U.S. can apply for their permanent resident status without leaving the U.S. through a process called adjustment of status.

Investors outside of the U.S. must apply to the U.S. consulate in their country of residence for an immigrant visa using Form DS-260 to enter the U.S. as a permanent resident. This is called consular processing.

Upon approving an I-526E petition, USCIS sends it to the Department of State National Visa Center (NVC) for pre-processing. You’ll be notified once the NVC receives your petition and opens your case file. The notification usually includes information on how to log in to the Consular Electronic Application Center (CEAC) to monitor your application status.

The NVC will also notify you when an immigrant visa number becomes available. They’ll inform you when and how you should pay the immigration visa fees and upload the required supporting documentation. They’ll then schedule a visa interview for you.

The consular interview is a crucial step in the immigration process and can determine whether foreign investors will receive U.S. permanent residency. This is why some preparation is required for a successful EB-5 interview.

This article takes a closer look at the interview stage of EB-5 consular processing and provides insights to help investors scale through the interview.

Preparing for an EB-5 Consular Interview

The consulate interview is an important step in an EB-5 investor’s immigration journey and requires careful preparation.

During the interview, the investor must be prepared to answer questions about their EB-5 application, background, and reasons for wanting to move to the U.S. The consular officer’s primary goal is to confirm the investor’s (and their dependent family’s) eligibility for the visa. The investor has to convince the consular officer that their reasons for immigrating to the U.S. are genuine and they’ve met all requirements for the EB-5 visa.

Foreign nationals investing in a regional center-sponsored project should get all possible information and relevant supporting documentation. You can ask your legal counsel for a mock interview to test your readiness.

The interview typically lasts 30 minutes to an hour, and the consular officer will pay close attention to spot any gaps or misrepresentations. Any discrepancy between the answers you provide and the information in your DS-260 can lead to the denial of your EB-5 visa application.

Consular Interview Requirements

EB-5 visa applicants and their dependents must complete the following steps before the interview.

Step 1: Register Online

Once you receive your interview appointment letter, you must register online and choose your visa pick-up location. After processing, the embassy will return your passport and visa package to the selected location. You will find the link to the registration portal on the consulate website. Registration is free.

Step 2: Schedule and Attend a Medical Examination

Investors and their dependents must attend a medical examination with an authorized physician before the scheduled date. The examination must be conducted by a doctor approved by the U.S. embassy in the investor’s country. You will find the list of approved panel physicians and required documents for the appointment on your home country’s U.S. consulate website.

The doctor will send the result directly to the embassy or give it to you in a sealed envelope to submit during the interview.

Step 3: Gather Supporting Documentation

You must bring all required original or certified documents to the interview, so it’s essential to start gathering them on time. Failure to bring all the necessary documents can delay your visa processing.

Who Should Attend the Interview?

The interview is mandatory for the investor, their spouse, and unmarried dependent children relocating to the U.S. with them. Dependent children below 14 years of age are not required to attend.

If an investor’s spouse and dependent children are relocating later, they do not have to attend the interview with the investor. They will be scheduled for a separate interview at a later date.

Documents Needed for an EB-5 Consular Interview

All EB-5 investors and accompanying dependents must come with the following documents to their consular interview:

• Interview appointment letter received from NVC.
• DS-260 confirmation page.
• Passport—valid for up to six months after the expected entry date to the U.S.
• Two identical color photographs.
• Online registration confirmation page.
• Birth certificate.
• Marriage certificate, if applicable.
• Certificate of termination of any previous marriages (e.g., divorce certificate or death certificate of former spouse), if applicable.
• Proof of transfer of investment funds to an escrow account or an investment project.
• Police certificate.
• I-526E petition and financial forms.
• Copies of previous U.S. entry documents.
• All other civil documents you uploaded into CEAC.

Investors must provide certified translations of all documents not in English, along with the original. The consular officer may request additional evidence, which you or your attorney must provide within the given time frame to avoid delays.

Questions to Expect During an EB-5 Interview

Every EB-5 regional center investor going through consular processing should be ready to answer questions regarding their background and EB-5 investment project.

Questions About Your EB-5 Petition

An EB-5 investor visa applicant will be asked several questions concerning their EB-5 investment. Some questions to expect include:

• How did you hear about the EB-5 opportunity?
• Why did you choose to invest in a regional center project?
• What’s the current status of the project?
• How many jobs have been created?
• What was the total cost of your EB-5 investment, including the administrative fees you paid to the regional center?
• What is your source of funds for this investment?

The supporting documentation you used for your I-526E application will be helpful when answering these questions.

Immigration History and Other Personal Matters

The consular officer will most likely inquire about your immigration history and your reasons for deciding to relocate to the U.S. Expect questions like:

• Why did you choose to relocate to the U.S.?
• Have you ever been the subject of immigration proceedings?
• Have you ever been ordered removed from the U.S. or any other country?
• Do you have any past or current criminal convictions?
• Have you ever been arrested?
• What other country have you lived in aside from your country of origin?

Tips for a Successful EB-5 Interview

The following tips can help during your interview:

• Answer all questions honestly. The consular officer most likely already knows the answer to the question and is trying to judge your authenticity.
• Be confident but polite when answering questions.
• Be quick, concise, and straightforward. Avoid rambling, and don’t hesitate when giving answers. This can make the officer suspicious.
• Answer questions directly, and do not speculate. If you don’t know the exact answer to the question being asked, say so.
• Bring all the supporting documents you’ll need to back up your answers.
• The officer may not make a decision on-site. Refrain from pushing for an immediate decision. It can lead to an unfavorable outcome.

After the Interview

After the interview, you’ll have to wait for the consulate to decide on your application. Decision times vary across U.S. embassies and consulates in different countries.

Some factors that affect decision times include administrative procedures, visa availability, consular workload, and the complexity of the case.

Requests for additional supporting evidence can prolong the decision time. Also, some consulates receive a higher volume of visa applications than others, so processing visa applications will take longer. It’s advisable to limit travel plans until you get a decision.

The embassy will notify you once a decision is made.

What Happens if an Investor Fails to Appear for the Interview?

If an investor cannot attend their interview, they must contact the U.S. embassy or consulate on time to reschedule the interview. Failure to contact the U.S. embassy within one year of receiving the appointment notice will lead to termination of the case and the cancellation of your I-526E petition. Any fees paid will not be refunded.

Investors are advised to make every effort to attend the scheduled interview. If you choose to reschedule, note that appointments are limited, and you may have to wait much longer for another available appointment. Also, there may be no available visas on the day of your rescheduled interview. You should check the latest Visa Bulletin before deciding to reschedule.

EB5AN Can Help You Secure U.S. Permanent Residency

Applying for an EB-5 investor visa can be a long and complex process. While investors can submit their I-526E petition and immigrant visa application themselves, it’s best to get help from an experienced immigration attorney and industry-leading EB-5 experts.

EB5AN has helped more than 2,300 families from 60 countries relocate to the United States as lawful permanent residents. Our team has 10+ years of experience and offers clients low-risk EB-5 regional center projects with a 100% USCIS project approval rate to date.

If you need help applying for an EB-5 visa or would like to get an opinion on your ongoing process, book a one-on-one call with our EB-5 team today.

EB-5 investors can invest in a regional center-sponsored project or directly in a new commercial enterprise.

Most investors prefer regional center sponsorship because it offers an easier and faster route to obtaining an EB-5 visa and U.S. permanent residency. The regional center pathway also tends to be less costly, as most sponsored projects are in targeted employment areas, qualifying for a lower investment threshold.

Investing through regional centers also makes meeting the job creation requirement easier. With direct investments, investors must create at least ten full-time jobs for qualified U.S. workers and sustain them for at least two years. However, regional center investments allow investors to also use indirect and induced job creation to meet this requirement.

While investing through a regional center is a more accessible pathway to obtaining your EB-5 visa, there is no guarantee that USCIS will approve your I-526E petition. Your petition may be rejected if the regional center or project fails to meet USCIS conditions.

This is why it’s essential to carry out due diligence before choosing a regional center. This article provides a practical guide to conducting regional center due diligence.

Regional Center Due Diligence Checklist

Conducting regional center due diligence helps investors achieve immigration success and avoid losing money in an EB-5 investment. The checklist below serves as a guide for regional center due diligence.

USCIS Compliance

The United States Citizenship and Immigration Services (USCIS) designates regional centers. As such, a regional center must comply with all USCIS rules and regulations to obtain a designation and remain operational.

In carrying out due diligence, you must check the compliance of the regional center with USCIS policies. Confirm that they have an active designation. The regional center should be able to provide investors with their compliance history. Confirm they have maintained their designation by filing their annual certification forms.

Only choose regional centers with a history of full compliance. Be wary of those that have been cited for non-compliance in the past.

History and Experience

When choosing an EB-5 regional center, consider the experience level of each prospective one you’re considering. Check when each regional center was founded and how long they’ve been operating as an EB-5 project sponsor. You should also check how many projects they have completed since their designation.

The longer a regional center has been active in the EB-5 field, the more familiar it’ll be with the nuances of EB-5 petitions, project selection, and USCIS regulations. Their key personnel will likely be more experienced with the EB-5 processes and can help ensure a smooth application process.

Track Record

An investor primarily applies for an EB-5 visa to obtain U.S. permanent residency. So, every investor wants some type of guarantee that their investment in a regional center-sponsored project will lead to obtaining their Green Card. However, this is not always the case.

To ensure the success of their immigrant investor petition, investors must examine the track record of each prospective regional center. Research their project success rates, investor I-526E and I-829 petition approval rates, and investor repayments.

Given the potentially lengthy processing times of EB-5 petitions, newer regional centers may not have a long history to determine approval rates. Investors should look out for past I-526E and I-829 petition denials in this case. The presence of investor petition denials often indicates that the regional center breached USCIS guidelines.

Management Team

Like every other business enterprise, the success of a regional center relies on the expertise of its management team. Many regional center owners do not have a professional background in international finance and investments. This can affect the successful operation of their regional centers and sponsored projects.

Investigate the professional background of each prospective regional center’s management team. Look for those with relevant experience in business finance, immigration law, and real estate, as well as those who have worked on significant business transactions in the U.S. and abroad.

Investors should also look into the management’s integrity track record. Check for bankruptcies, past lawsuits, and regulatory issues. Analyze the profit-sharing agreement between the regional center and project developers. The presence of excessive compensation can indicate irregularities that could affect your investment.

Project Selection Process and Project Viability

If a regional center-sponsored project fails, an investor may lose their money and chances of becoming a U.S. permanent resident. That’s why, as part of due diligence, investors should talk to the prospective regional center about a customized project selection process and successful completion rates.

Find out if the regional center conducts independent due diligence on its projects. Examine their business plan and economic analysis to determine the project’s viability. Analyze each regional center’s investment strategy and determine if it aligns with your investment goals and risk tolerance.

Look out for regional centers that provide low-risk projects. That is, projects where the EB-5 investor does not bear the most risk. Projects already under construction and presold are generally at lower risk and more viable than those still in the planning stages.

Financial Strength

Investigating the financial strengths of a regional center is a critical component of due diligence. USCIS mandates that regional centers submit annual financial reports to their investors. You can use these reports to analyze the financial strength of the regional center.

Review each regional center’s audited financial statements. Assess their debts, assets, liabilities, and cash flow. Also, check their primary source of funding for sponsored projects. How much of the capital comes from EB-5 investments? How much comes from bank loans and developer equity?

Projects in which EB-5 investments make up a smaller percentage of the capital are often safer than EB-5 investment-reliant projects. The latter might fail if there are insufficient EB-5 investors.

Investors should also check the escrow agreement to understand how the investment funds will be managed and disbursed into the project.

Communication and Transparency

Communication and transparency are vital considerations when choosing a regional center. Investors should assess the regularity and transparency of each prospective regional center’s communications with investors. How fast do they respond to investors’ inquiries? And do they handle concerns professionally?

A good regional center should provide regular project progress and disclose critical financial transactions to its investors. Check their websites for testimonials from past investors. If possible, directly contact past investors to learn about their experiences with the regional centers.

Work With EB5AN for Financial and Immigration Success

Conducting regional center due diligence is essential for a successful EB-5 process. Choosing a regional center and project to invest in does not have to be overwhelming. You can make a well-informed decision by doing some thorough research.

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

If you need more information about conducting regional center due diligence or want to know more about our EB-5 regional center projects, please book a one-on-one call with our EB-5 team.

The EB-5 visa program operates on an annual cycle from October 1 to September 30, known as the Fiscal Year (FY). To keep all immigration stakeholders informed, the U.S. Department of State (DOS) releases monthly and yearly reports showing the EB-5 market’s status.

By understanding and analyzing up-to-date EB-5 data, applicants can stay ahead of EB-5 visa quota insights and other policy changes. These insights enable them to make strategic decisions, avoid expensive mistakes, and potentially shorten EB-5 wait times.

EB-5 applicants can stay informed by consulting reliable sources such as the monthly visa bulletin, the official website of the United States Citizenship and Immigration Services (USCIS), and the EB5AN blog for the latest developments in the program.

In this article, we will look at the available data for FY 2024 so far, and compare it with the previous fiscal year.

EB-5 Visa Availability and Issuance in FY 2024

March 31 marked the end of the first half of FY 2024, and the data from these six months is rather positive. The Department of State’s monthly immigrant visa issuance statistics data shows an impressive increase in visa issuance rates by consular processing in FY 2024, namely a year-over-year increase of 64%. The number of visas issued each month in FY 2024 surpasses the number issued in the corresponding months in FY 2023, except for November.

Below, we will analyze availability and issuance in FY 2024 concerning the different EB-5 categories and countries.

Unreserved Visas

The National Visa Center (NVC) waiting list revealed that nearly 39,900 registered EB-5 applicants were awaiting visa issuance. For FY 2024, the number of available unreserved visas is 14,169, an unusually high number. DOS data indicates that 5,070 of the 14,169 unreserved visas have been issued between October 2023 and March 2024. So far, only 36% of available visa numbers have been used through consular processing in the first six months of FY 2024.

In this category, Chinese nationals received 2,767 visas, which is 54.58% of total visas issued, representing the largest portion of EB-5 investors.

Vietnamese nationals are the second-largest group, with 1,326 visas issued, making up 26.15% of the total.

Indian nationals are third in line, accounting for 9% of the visas issued in the first six months of FY 2024, with 440 visas issued through consular processing. However, many Indian EB-5 investors typically receive their Green Cards through adjustment of status in the U.S., so more comprehensive data is needed to evaluate the overall EB-5 visa issuance for Indian nationals.

Reserved Visas

Reserved visas are set aside for rural, high unemployment, and infrastructure projects. This year’s number of available reserved visas is 8,136, and so far, they have not been used.

As of the May 2024 visa bulletin, all reserved EB-5 visa categories are current for all countries. Foreign nationals who intend to apply for the EB-5 visa program can bypass the lengthy wait in the unreserved visa queue by investing in projects that qualify for these set-aside visas.

Investors in rural EB-5 projects can speed up their Green Card process even more, as USCIS applies the priority processing approach to rural I-526E petitions.

However, recent data suggests potential upcoming backlogs in reserved categories, so investors are advised to submit their applications soon to benefit from this opportunity.

Launch Your EB-5 Journey With EB5AN

The outlook for the EB-5 program in FY 2024 is positive. However, tens of thousands of applicants with approved I-526E petitions are still waiting for their visa numbers. If all available visas for FY 2024 are used, the current EB-5 waitlist could be reduced by 36% by the end of the fiscal year. Therefore, the efficiency of U.S. Consular Offices in processing EB-5 visas is crucial for reducing the current visa backlog for pre-RIA EB-5 investors.

For new investors, selecting the right timing, team, and project is key. Potential EB-5 investors should seek expert advice to make the best decisions that align with their financial and immigration goals.

That’s where EB5AN comes in. We have helped more than 2,300 families from 60 countries relocate to the United States as lawful permanent residents. Our key advantage is our personalized approach, where we offer customized services that meet the specific needs of each investor.

To find out how we can help you and your family obtain U.S. Green Cards, please schedule a free consultation with our expert team today.

The EB-5 Immigrant Investor Program is a popular pathway for foreign nationals to obtain permanent residence in the U.S. In addition to receiving a Green Card, EB-5 applicants strive to earn profitable returns on their investments.

As a result, thorough financial planning is required, especially regarding capital funding and the financial sustainability of the investment.

Gaining permanent residence is the primary motivation of many EB-5 applicants. This sometimes makes them focus on complying with the EB-5 regulatory requirements and neglecting financial viability considerations. This approach is risky because understanding a project’s capital stack can be crucial for applicants to predict their investment’s performance, make informed decisions, and safeguard their capital.

In this post, we will explain the different types of EB-5 financial structuring and the factors investors need to consider while selecting a low-risk EB-5 project.

What Are the Different Types of EB-5 Financial Structuring?

The EB-5 financial structuring refers to the different layers of funding that make up the total investment in an EB-5 project. The financial structuring for direct investments is pretty basic, as it involves just one EB-5 investor. However, financial structuring for regional center EB-5 investments is more complex.

Typically, regional center investors have four types of financial structures to choose from, as well as combinations between them: senior debt, mezzanine debt, preferred equity, and common equity. Here’s a breakdown of the four layers of the EB-5 capital stack:

Senior Debt

Senior debt is a type of loan injected into an investment in exchange for interest payments. In most cases, the senior debt forms the largest percentage of the EB-5 capital stack, with lenders given the highest priority for repayment. This ensures that senior debt lenders receive their interest/dividends before all other investors in the project, making it the most secure type of financial structuring.

While senior debts are less risky, the profit realized from this type of funding is limited to an agreed fixed interest rate. In other words, the return on investment from senior debts is significantly less than the profits from other forms of funding.

EB-5 senior debt holders usually secure their loans either through a first-lien mortgage on real estate or a repayment guarantee. These measures help minimize the risk of financial loss.

Mezzanine Debt

Similar to senior debt, mezzanine debt starts as a loan. However, if the project fails, mezzanine debt holders may convert their loans to ownership interests. Therefore, it is accurate to say that this type of financial structuring is a middle ground between regular loans and equity-based investments.

After the senior debt is paid, mezzanine debt holders are next in line to receive their returns. If the developers fail to meet their obligations, mezzanine debt holders can claim ownership interests.

When an investment project becomes unstable, most EB-5 regional centers prefer to extend the project developer’s deadline rather than assume ownership interests. This approach helps them avoid the financial burden of taking over the project.

Mezzanine debt is mostly preferred because it offers higher returns than senior debt and has a higher priority over equity shareholders in the event of project failure.

Preferred Equity

Preferred equity is a type of investment in which investors get paid before common equity investors but after all debts are settled. A major advantage of preferred equity is that it yields higher returns compared to senior and mezzanine debt. Additionally, if the investment is unsuccessful, preferred equity investors have a better claim on assets than common equity investors, though still subordinate to debt holders.

Common Equity

Common equity investors bear the most risk because they receive their profits after every other investor. Often, there are no assets left for them if the investment fails, resulting in a total loss.

On the other hand, if an investment is successful, common equity investors usually gain significant profits. EB-5 investors with a high risk tolerance are best suited for this type of financial structuring.

Common equity in a project typically consists of various classes or shares among partners, leading to a wide range of terms regarding profit-sharing and capital repayment. It is important to carefully review the offering documents to understand the dividend and capital repayment priorities.

What Factors Should an EB-5 Investor Consider?

EB-5 applicants select their projects based on several factors. These include their risk appetite, investment objectives, and the regional center management they collaborate with. Let’s discuss them briefly.

Risk Tolerance

Under each type of financial structuring, the element of risk is highlighted because an investor’s appetite for risk is a key consideration when selecting a viable EB-5 financial structure. Investors who can handle the uncertainty that comes with riskier investments are welcome to choose equity-based capital funding. In contrast, risk-averse investors are advised to select debt-based capital funding.

Investment Goals

EB-5 investments are unique because investors and other project stakeholders must consider both their immigration and financial objectives. This is why investors should evaluate whether the financial structure they have chosen will support all their goals.

Management Capability

Aside from a specific project’s capital stack, the EB-5 regional center’s experience and expertise are also critical factors. As a result, EB-5 investors should look for regional centers with a track record of completing EB-5 investment projects. Organization, good project oversight, and the overall operational expertise of an EB-5 regional center heavily influence the likelihood of the project’s success.

Get Reliable Advice From Industry Experts at EB5AN

While it is important for EB-5 applicants to understand the basics of financial structuring, the financial aspects of EB-5 investments still require expert judgment. As such, working with an experienced EB-5 team will facilitate important financial due diligence functions such as risk assessment.

EB5AN has helped over 2,300 foreign nationals from around the world get EB-5 visas. Book a free consultation with our expert team to learn how we can assist you in finding the right project for your EB-5 investment.

International students in the U.S. under the F-1 visa can start applying for their Green Cards while still studying. While there are several pathways for changing immigration status from F-1 student to Green Card holder, the EB-5 visa remains one of the easiest and fastest routes.

In this article, we’ll discuss how you can initiate the process of adjusting status from an F-1 visa holder to a Green Card holder while still studying. But first, let’s look at the limitations of the F-1 visa.

F-1 Visa and Its Limitations

The F-1 student visa is a single-intent nonimmigrant visa that allows foreign nationals to pursue full-time studies in the U.S.

To qualify, intending foreign students must be enrolled in an approved U.S. institution for a full-time certificate, diploma, or degree-awarding course/program. They must also prove that they plan to return to their home country upon completing their studies.

While a proven intention to leave the U.S. after your studies is central to qualifying for an F-1 visa, there are pathways to becoming a U.S. permanent resident if you decide to stay.

Options for F-1 Students to Obtain a Green Card

Although the F-1 visa is a nonimmigrant visa, F-1 visa holders who wish to remain in the U.S. after their studies can do so by switching to other routes. Foreign U.S. students can extend their stay and possibly obtain a Green Card by:

• Adjusting to a dual-intent visa like H-1B—potentially through Optional Practical Training (OPT) or Curriculum Practical Training (CPT).
• Self-petitioning for an EB-1 exceptional ability visa.
• Receiving employer sponsorship for an EB-2 or EB-3 visa.
• Marrying a U.S. citizen or permanent resident.
• Applying for an EB-5 investor visa.

While all the above pathways can eventually lead to permanent residency in the U.S., only the EB-1 extraordinary ability visa and EB-5 investor visa are direct employment-based routes to lawful permanent resident status.

Although the EB-1 visa offers a direct pathway to obtaining a Green Card, the requirements are stringent. Only a small percentage of international students can meet the criteria, and the burden of proving eligibility lies solely on the petitioner.

The EB-5 investor program offers a less competitive and faster pathway for immigrant students to obtain a Green Card in the U.S. Thanks to the EB-5 Reform and Integrity Act of 2022 (RIA), foreign students can apply directly for an EB-5 investor visa and Green Card while still studying. We will explore more about the RIA below, after taking a quick look at the EB-5 visa and its requirements.

EB-5 Investor Visa: A Faster Pathway to Permanent Residency

The EB-5 program offers U.S. permanent residency to foreign nationals in exchange for their investment in a U.S. business. The U.S. Congress introduced the program in 1990 to attract capital investments from foreign nationals as a means of creating jobs and boosting the U.S. economy.

The United States Citizenship and Immigration Services (USCIS) administers the EB-5 program. An eligible investor will receive permanent residency together with their spouse and unmarried children under 21 years old.

To qualify for the EB-5 visa, an investor must:

• Invest a minimum of $800,000 or $1,050,000 (depending on the investment location) in a new commercial enterprise.
• Create jobs for at least ten qualified U.S. workers.

With a minimum investment of $800,000, targeted employment area (TEA) investments are more advantageous for investors. The investment threshold is lower because the U.S. government wants to attract more investment to these regions to foster rural development and combat high unemployment rates.

Investing in TEAs is the fastest way to get an EB-5 Green Card because such investments are eligible for set-aside visas.

The set-aside visas are part of the provisions of the RIA. It reserves 32% of the yearly quota of EB-5 visas for investment in TEAs broken down into:

• 20% for rural area investments.
• 10% for high-unemployment area investments.
• 2% for designated infrastructure projects.

Investing in TEAs means avoiding the backlog in unreserved categories and skipping the long waiting time.

The Cost of an EB-5 Green Card for International Students

Aside from the minimum investment requirements mentioned above, EB-5 investors may face other expenses, such as petition filing fees, administrative fees, and legal guidance costs. Altogether, the EB-5 visa may seem quite expensive for students who aren’t established entrepreneurs.

However, considering the cost of schooling in the U.S. without a scholarship and the endless possibilities that obtaining a Green Card through an EB-5 visa presents, it may not be as expensive as it looks.

International students pursuing a degree without a grant typically spend between $300,000 and $500,000 during their studies. Those who choose to remain in the U.S. often face difficulty finding gainful employment after their studies because they don’t have a Green Card or work permit.

After investing so much in getting an education, being unable to find work can be frustrating, and many may be forced to return to their home countries. An investment of $800,000 to secure their future in the U.S. could be worth the price. For those who can afford it, it’s also the best graduation gift parents of international students can give their children.

Moving From F-1 Student Status to EB-5 Green Card Holder

The RIA provided a concurrent filing option that enables applicants who are already in the U.S. in valid nonimmigrant status to submit their immigrant petitions and adjustment of status applications at the same time. This allows F-1 visa holders to apply for an EB-5 visa before completing their studies, and remain in the U.S. after graduation without accumulating unlawful presence until they get their Green Cards.

The concurrent filing option allows F-1 students to file four petitions simultaneously, namely:

• Form I-526E – Immigrant Petition by Regional Center Investor (EB-5 visa application).
• Form I-485 – Application to Register Permanent Residence or Adjust Status (Green Card application).
• Form I-765 – Application for Employment Authorization Document (work permit application).
• Form I-131 – Application for Travel Document (travel permit application).

F-1 students will not need employer sponsorship to remain in the U.S. at the end of their studies by filing these four petitions concurrently. They’ll be able to work anywhere they choose, including being self-employed.

If you invest in a regional center-sponsored project, you won’t have to be involved in running the enterprise you invested in.

While you can technically file an EB-5 petition yourself, it’s best to engage the services of an experienced immigration attorney for a smooth and error-free process.

Benefits of Pursuing an EB-5 Visa While Still Studying

Students who file for an EB-5 visa from inside the U.S. enjoy several benefits when compared to foreign nationals who pursue other visas, or investors who apply through consular processing. Some of these include:

• EB-5 adjustment of status is one of the fastest ways to become a U.S. permanent resident. You’ll have the legal right to remain in the U.S. upon completing your studies as your Form I-485 is being processed.
• An EB-5 status gives you equal footing to compete in the job market.
• You won’t need employer sponsorship to live and work in the U.S., and you can pursue your interests, including self-employment.
• By acting fast and applying while you’re studying, you get to lock in an early priority date.
• Your application covers your spouse and any dependent children.
• It’s a fast-track route to U.S. citizenship. You can apply for citizenship after five years of permanent residency, which includes the two-year conditional permanent residency period.
• You can sponsor other eligible family members, such as your parents, to join you in the U.S. once you obtain citizenship.

EB5AN Can Help You Secure Your Future in the U.S.

Immigration applications are generally complex and require lots of documentation and adherence to certain rules. A slight mistake can cost you the opportunity to become a legal U.S. resident. It’s even more so for the EB-5 investor visa with its due diligence and source-of-funds requirements.

Getting expert assistance when filing an immigrant petition is essential for eliminating errors and reducing the chances of rejection. As an F-1 visa holder, you should consult with an immigration attorney before making the transition.

The EB5AN team would be happy to assist you throughout your Green Card process. We have helped more than 2,300 families from 60 countries relocate to the United States as lawful permanent residents.

Please book a free one-on-one call with our team today to learn more about your options.

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.