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What Are the Accepted Source and Path of Funds in the EB-5 Program?

Investor counting U.S. dollars next to legal documents and scales of justice, symbolizing EB5 source of funds and compliance with USCIS requirements.

The EB-5 Immigrant Investor Program gives foreign investors the chance to gain U.S. permanent residency by placing at least $800,000 into a U.S. business. However, to receive a Green Card, you must prove that your investment funds are legal.

This is because the U.S. government wants to make sure that the money used for the program does not come from illegal activities. To do this, each investor must clearly show and document the source and path of their funds. Failure to do so can lead to the USCIS denying your application, even if the business is strong and you meet the job creation goals.

In this article, we will explain what the EB-5 source and path of funds mean, so you know how to prepare for this important part of the EB-5 process.

Legal Source of Funds For the EB-5 Program

Hands exchanging U.S. dollars and euros across a desk, representing EB5 path of funds and international money transfers for investment.

During the EB-5 visa process, USCIS wants to be sure that your investment comes from a source that is lawful and not connected to criminal activities. As such, you have to prove how you earned or received the funds. Here are the most common legal means accepted as a source of EB-5 funds:

1. Employment Income

If your funds come from your salary, wages, or bonuses earned from working a job, you will need to provide the following:

  • Employment history and income.
  • Name of your employer.
  • Records of salary payments.
  • Tax returns for the last several years to confirm your reported income.
  • Bank records showing salary deposits.

2. Profits Earned From Your Business

Some investors use profits from businesses they own. In this case, you must prove that the business exists, earns legal income, and how you took profits out of the business for investment purposes. Necessary documents here may include:

  • Transfer of funds from the business to your personal accounts.
  • Capital source summary showing sale proceeds and how you acquired stock.
  • Shareholder agreements or ownership certificates.
  • Company tax returns.

3. Inheritance or Gifts

Hundred-dollar bills placed on a decorated gift box with red envelopes, illustrating EB5 investment funds received through gifts or inheritance.

Some investors receive funds from family or friends. USCIS accepts money from gifts or inheritance, but you must prove that the original source of the money was legal.

For inheritance, you will need:

  • A copy of the will or inheritance letter.
  • Proof of relationship to the deceased.
  • Documents showing that the inherited money came from a legal source.

For gifts, you must include:

  • A gift letter signed by the person who gave you the money.
  • Documents proving how the giver got the funds.
  • Records of the money transfer from the giver to you.

4. Loans

EB-5 investors may use loans, but only if it is secured by the investor’s personal assets. To use a loan, you’ll need to provide:

  • A signed loan agreement.
  • Proof of collateral, such as property documents or asset valuations.
  • Documents showing legal acquisition of the asset used as security.
  • Bank statements showing the disbursement of loan funds.
  • Bank records showing that the loan amount was transferred to your account.
  • Evidence of the lender’s lawful source of funds.

Unsecured loans are also allowed, as long as they are lawfully obtained and the borrower is personally liable for repayment, as clarified in the Zhang case.

Documents USCIS Accepts for Path of Funds

Business professionals reviewing clipped financial documents beside a laptop, showing EB5 path of funds documentation and record-keeping.

Once you prove the source of your funds, you must show a step-by-step record of the path of funds. This term describes the journey of EB-5 capital from its initial source to the point they are deposited into the escrow account or the business account of the NCE. Here’s what you will typically need to show your full path of funds:

1. Bank Statements

Bank statements are the most basic documents for showing the path of funds. You should include:

  • Bank statements from the time the funds were received to the time they were transferred to the EB-5 investment.
  • Bank records from other accounts if the funds were moved between different banks.
  • Records from accounts of gift-givers or loan providers if the money came from someone else.

2. Transaction Records

In addition to bank statements, transaction receipts or payment confirmations help support your case. These may include:

  • Wire transfer receipts.
  • Screenshots or emails showing completed transactions.
  • Deposit slips.
  • Receipts from banks or money exchange services.

3. Foreign Transfers

If you moved funds from another country to the U.S., you must explain and prove each step of the transfer. This may involve:

  • Outbound transfer records from your home country.
  • Inbound transfer records from your U.S. bank.
  • Currency conversion receipts if the funds were converted from a foreign currency to USD.

Some countries have strict rules about moving large amounts of money abroad. If your country has such rules, include proof that you followed all local laws and banking procedures.

EB5AN Can Help You Prove Your Source and Path of Funds

Two professionals pointing at paperwork in an office setting, highlighting professional guidance provided by EB5AN for EB5 investors in proving source and path of funds.

The EB-5 program requires more than just capital investment. You must prove that your funds came from legal sources and were moved in a clear and traceable way for your petition to be approved. Showing the source and path of funds is not always simple, however, working with professionals makes the process much easier.

The EB5AN team understands what USCIS looks for in EB-5 petitions. With more than a decade of experience, we have supported over 2,700 families in preparing their documentation and achieving Green Card approval.

Book a free call with our expert team today to make sure your EB-5 paperwork tells a complete and valid story.

Free EB-5 Project Evaluation

Repayment Guaranty: How to Judge If a Guarantor Is Truly Reliable

Two business professionals shaking hands with a city skyline overlay, symbolizing EB5 repayment guaranty agreements and investor protections.

The EB-5 program is primarily valued for the chance to obtain permanent residency in the United States, but most investors also hope to eventually recoup their investment.

When an EB-5 project is financially successful and able to pay back its EB-5 loan, investors receive their funds as described in the project’s offering documents. Still, even developments with well-thought-out plans and solid capital structures can encounter unexpected challenges. The U.S. real estate market, which hosts many EB-5 projects, is especially prone to rapid shifts. And while investors want certainty, EB-5 rules prohibit personal contractual repayment guaranties.

That said, there are mechanisms projects can use to provide added security for their investors. One of the strongest is a repayment guaranty. Under this arrangement, another entity agrees to repay the EB-5 loan if the borrower is unable to.

However, such a guaranty is only as dependable as the guarantor itself. If the guarantor does not have the resources to make good on the promise, the guaranty adds little protection.

This article explains how repayment guaranties function in EB-5 projects, why the guarantor’s financial strength is essential, and what factors investors should examine before committing to a project with a repayment guaranty.

The Financial Risk in EB-5 Investments

An investor reviewing EB5 loan documents while money is exchanged in an envelope, representing repayment arrangements and financial safeguards.

To see how repayment guaranties fit into EB-5 offerings, it helps to look at how funds move through a project.

Typically, an investor wires their capital to an escrow account overseen by the regional center’s investment fund. This fund then loans the capital to the project entity developing the real estate. The project company is the borrower of the EB-5 loan.

Once the loan matures, the borrower is expected to repay the investment fund, which then distributes the repayment back to individual investors.

The challenge is that repayment to investors is entirely dependent on whether the EB-5 loan itself is repaid. If the project succeeds and can cover its obligations, repayment occurs. But EB-5 rules require that investor funds remain “at risk,” so investors cannot be given a personal repayment guarantee.

In practical terms, this means the investment can result in either loss or gain.

Another factor to keep in mind is the project’s capital structure. EB-5 loans are often lower in priority compared to other financing sources, so senior lenders are repaid first. Even financially solid projects can encounter difficulties or market changes that affect their ability to repay.

Given the minimum EB-5 investment of $800,000, it is natural for investors to look for ways to reduce this financial risk.

How Repayment Guaranties Work

A repayment guaranty is one tool that can lower risk in EB-5 offerings. In this arrangement, a guarantor pledges to cover repayment of the EB-5 loan to the investment fund if the borrower defaults or faces financial obstacles.

The guaranty’s terms—such as whether it covers the full loan or a portion, and the conditions that trigger repayment—are specified in the loan agreement and guaranty documents. Importantly, these guaranties are legally enforceable. They function much like collateral, giving investors added assurance that funds will be repaid if the borrower cannot meet its obligations.

Why Repayment Guaranties Are Allowed

Close-up of cash being handed over at a business desk with financial charts and laptop, illustrating EB5 loan repayment and guarantor obligations.

Since each EB-5 investment must involve some element of risk, individual investors cannot be given direct repayment guarantees. A loan repayment guaranty does not remove risk entirely, however, because it only obligates the guarantor to repay the loan—not to guarantee repayment to each investor personally.

This distinction ensures that the at-risk requirement of the EB-5 program remains intact. If the guarantor itself encounters financial strain, repayment may still be at risk. But a strong, well-capitalized guarantor significantly lowers that possibility.

Because the guaranty is an agreement between the lender (the investment fund) and the borrower (the project company), and not a guarantee of principal to each investor, USCIS has consistently approved projects with such structures—including EB5AN’s.

What Makes a Strong Guaranty?

The value of a repayment guaranty depends entirely on the guarantor. Investors should consider several points to determine whether a guaranty is truly secure.

  • Is the guarantor a parent or holding company of the developer?

Large developers or their holding companies often have substantial equity and diversified assets spread across multiple projects. This financial strength makes it more likely they could repay the EB-5 loan even if one project falters. A history of completing projects and repaying obligations is another positive indicator.

  • Does the guaranty include minimum equity coverage?

Many of the strongest guaranties require the guarantor to maintain a set equity ratio. For example, a 150% coverage requirement means that for every $1 in guaranteed debt, the guarantor must maintain at least $1.50 in equity. If equity drops below this threshold, the developer may be required to inject capital or take corrective measures. These provisions make repayment far more likely, even if the project underperforms.

A well-capitalized guarantor with diversified assets and strong equity coverage can provide significant protection.

Weak Guaranties Investors Should Avoid

Not every repayment guaranty offers real protection. Warning signs include:

  • The guarantor lacks enough equity to cover the full EB-5 loan.
  • The guarantor has no established track record of repaying obligations.
  • The developer refuses to provide details or financial statements on the guarantor.
  • The guarantor is closely tied to the lender or developer, creating conflicts of interest.

Any of these factors could render the guaranty ineffective and leave investor funds exposed.

EB5AN’s Guaranties With The Kolter Group

At EB5AN, we prioritize offering investors a high level of safety, often exceeding typical industry standards. To achieve this, we partner with developers who have proven track records and sufficient assets to secure EB-5 loans.

Since 2014, EB5AN has worked with The Kolter Group on multiple EB-5 projects, all of which have included repayment guaranties or the option to add one. Kolter’s extensive assets and equity fully secure each EB-5 loan.

Kolter has successfully weathered economic downturns, including the 2008 financial crisis, and has invested more than $20 billion into real estate projects over nearly two decades. Every EB5AN–Kolter project has received USCIS approval, and all EB-5 funds have either been repaid or remain in good standing.

This record demonstrates why Kolter is an ideal guarantor for EB-5 loans.

Lowering Risk With the Right Project

A meeting between investors and a project developer or regional center principal, with a handshake reflecting trust in EB5 repayment guaranties backed by strong guarantors.

While individual EB-5 investors cannot receive direct repayment guarantees, choosing a project with a strong loan repayment guaranty can significantly reduce financial risk.

By carefully selecting such a project, investors improve their chances of both securing permanent residency and recovering their investment.

If you would like to learn more about EB-5 projects with strong repayment guaranties, schedule a free consultation with our expert team today.

Free EB-5 Project Evaluation

Common EB-5 Terms Every Investor Should Know

Hands sorting stacks of immigration case files with colored tabs beside a laptop, symbolizing EB5 petition processing and documentation review.

Understanding the EB-5 program begins with understanding its language. Immigration law and investment structures come with a host of acronyms and technical terms, and without a guide, it can feel overwhelming. Prospective investors are asked to review offering documents, track visa bulletin dates, and navigate requirements like job creation and sustainment, all of which are explained in specialized EB-5 vocabulary.

For families considering the EB-5 program, learning these terms is essential preparation. Clear knowledge of what phrases like “at risk,” “priority date,” or “concurrent filing” mean allows you to ask sharper questions, avoid costly mistakes, and better evaluate project opportunities. Whether you’re just beginning your EB-5 journey or already reviewing a project, this glossary provides plain-language explanations of the most common terms you will encounter.

With these basics in place, you can move through the EB-5 process more clearly, know what each step involves, and better evaluate your options for becoming a permanent resident of the United States.

  • Adjudication: The process by which U.S. Citizenship and Immigration Services (USCIS) reviews and makes a decision on an investor’s petition or application, such as their Form I-526E or I-485.
  • Adjustment of Status: The process to apply for lawful permanent resident status (Form I-485) within the U.S.
  • Advance Parole (AP): Travel authorization investors can apply for while their I-485 application is pending.
  • Aging Out: When a child dependent turns 21 and is no longer eligible under the principal applicant’s petition unless protected by the Child Status Protection Act (CSPA).
  • At-Risk Requirement: The rule requiring that EB-5 capital must remain at risk for the purpose of generating a return, meaning there can be no guarantees of return or redemption during the sustainment period.
  • Audits & Annual Statements: USCIS audits regional centers at least once every five years; regional centers also file annual I-956G compliance statements.
  • Bridge Financing: Temporary financing replaced by EB-5 funds; must be carefully structured to comply with EB-5 program rules.
  • Capital Stack: The total combined funding structure of an EB-5 project that incorporates the different layers of investment and financing sources, including EB-5 investor funds, loans, and other equity.
  • Child Status Protection Act (CSPA): Helps some children avoid aging out by subtracting the I-526/I-526E pending time from the child’s age on the date a visa becomes available (per the Visa Bulletin).
  • Concurrent Filing: Filing the I-526E and I-485 applications at the same time (allowed under the RIA if visa is available); applicants must currently be in the U.S. on a qualifying nonimmigrant visa.
  • Conditional Green Card: A two-year Green Card issued after EB-5 approval.
  • Consular Processing: Visa processing at a U.S. embassy or consulate outside the U.S.; this is the equivalent visa process for those ineligible to file concurrently.
  • Cut-Off Date: Date established in the monthly Visa Bulletin after which no more visas are available for a given country or category.
  • Date for Filing: The earliest date when applicants may submit adjustment of status applications.
  • Dependents / Derivatives: A principal investor’s spouse and unmarried children under 21, who are eligible to receive Green Cards based on the investor’s approved petition; these two terms are interchangeable.
  • Developer: The entity or individual that manages and oversees the EB-5 project and uses investor funds to finance and complete the commercial enterprise, often through a regional center’s sponsorship.
  • Direct Investment: The form of EB-5 investment in which an investor invests directly in the job-creating business; this type of investment can only count direct jobs toward the EB-5 program’s job creation totals.
  • Direct Jobs: Full-time jobs directly created by the EB-5 project and evidenced by payroll records.
  • Dual Intent: The concept that an EB-5 applicant can pursue permanent residency while maintaining nonimmigrant status under certain qualifying visa categories.
  • EB-5 Visa: A U.S. immigrant visa for international investors who make a qualifying investment and create 10 full-time jobs for U.S. workers.
  • Economic Report: A third-party analysis (often using input-output models like RIMS II or IMPLAN) to calculate indirect and induced jobs created by an EB-5 investment.
  • Employment Authorization Document (EAD): The work permit EB-5 investors can apply for while their I-485 application is pending.
  • Equity Model: An EB-5 investment model in which the new commercial enterprise (NCE) makes an equity investment into the job-creating entity (JCE); in such instances, EB-5 investors’ funds are used to purchase interests in the project, and EB-5 investors are paid back after a capital event, such as a sale or refinancing, with any additional returns stemming from project profits.
  • Escrow: A temporary account to hold investor funds before project approval or conditional Green Card approval.
  • Exit Strategy: The plan for returning the investors’ capital, typically through repayment of a loan or sale of equity.
  • Final Action Date: Date when a visa can actually be issued; the Visa Bulletin must show that an investor’s priority date is earlier than their final action date before their immigration documents can be processed.
  • Form I-485: The form used to apply for adjustment of status.
  • Form I-526: The petition to classify the investor as eligible for EB-5 status. (Now split into I-526 and I-526E under RIA.)

USCIS Form I-526E petition for EB5 regional center investors placed on a wooden desk with a red pencil, highlighting key immigration paperwork.

  • Form I-829: Petition to remove conditions on permanent residence; filed in the 90-day window before the second anniversary of becoming a conditional permanent resident.
  • Form I-956: Form for regional centers to apply for designation under the new RIA rules.
    • I-956F: Project approval request form.
    • I-956G: Annual compliance certification form.
  • Green Card: The official U.S. document granting lawful permanent residency to the investor and their eligible dependents after meeting the investment and job creation requirements.
  • Grandfathering: Provision under the RIA to protect investors with filed petitions from being negatively impacted by potential program lapses or changes.
  • Immigrant Intent: The investor’s intention to permanently reside in the United States, which aligns with the EB-5 program’s goal of granting lawful permanent residency through investment.
  • Indirect Jobs: Jobs indirectly created as a result of project spending (e.g., suppliers). Only regional center projects can count these jobs.
  • Induced Jobs: Jobs created from increased household spending by workers employed directly or indirectly (e.g., workers at nearby restaurants). Only regional center projects can count these jobs.
  • Integrity Fund: A fund established by the RIA to support USCIS monitoring and program integrity efforts.
  • Investment: The required capital, typically $800,000 or $1,050,000, that a foreign investor must put into an NCE in the U.S. to create or preserve at least 10 full-time jobs for U.S. workers.
  • Job-Creating Entity (JCE): The business or project that actually creates the jobs; it may or may not be the same entity as the NCE.
  • Job Creation: The requirement that each investor’s capital must create or preserve at least 10 full-time, permanent jobs for qualified U.S. workers within a reasonable timeframe.

Group of professionals and workers in business and trade attire, representing EB5 job creation through direct, indirect, and induced employment.

  • Loan Model: An EB-5 investment model in which the NCE loans the EB-5 funds to the JCE (typically used in regional center projects); loan investments have an established maturity date (date by when the loan must be repaid), and any additional returns stem from interest gained on the principal loan.
  • Mandamus: A legal action filed to compel USCIS to make a decision on a delayed petition or application when processing times exceed reasonable limits; commonly referred to as a writ of mandamus.
  • Material Change: A change in the investment/project that could affect the adjudication of an investor’s petition; such changes are strictly regulated under the RIA.
  • Material Misrepresentation: Any false statements in an EB-5 application that can lead to denial and potential immigration bars.
  • New Commercial Enterprise (NCE): The entity into which the EB-5 investor makes their investment; this entity must be a for-profit enterprise formed for the ongoing conduct of lawful business.
  • Notice of Intent to Deny (NOID): A formal communication from USCIS indicating that an investor’s petition or application is likely to be denied unless the applicant provides additional evidence or explanation to overcome the issues raised.
  • Offering Documents / Private Placement Memorandum (PPM): Key investment disclosures provided to EB-5 investors; these documents include such information as the legal structure of the regional center and the NCE, a breakdown of how investors’ funds will be used in the JCE, and the investment terms and repayment structure.
  • Oversubscription: When the number of applicants exceeds the available visas in a specific visa category or from a specific country; oversubscription commonly leads to backlogs and visa retrogression.
  • Path of Funds: The documented trail showing how the investor’s money was lawfully transferred from its original source through various accounts and transactions until it was invested in the EB-5 project.
  • Priority Date: The date when an investor’s I-526/I-526E is properly filed; this date is used for visa allocation and retrogression purposes.
  • Priority Processing: A benefit reserved for rural targeted employment area (TEA) projects through which applicable investors’ applications are given priority by USCIS.
  • Project: The specific commercial enterprise or business venture into which the investor’s capital is placed to meet the investment and job creation requirements.
  • Redeployment: The reinvestment of EB-5 funds after the job creation requirement is met but before the sustainment period ends.
  • Reform and Integrity Act of 2022 (RIA): A piece of major legislation that reauthorized the regional center program and which established several crucial integrity measures and program changes.
  • Regional Center: USCIS-approved entities that pool EB-5 capital and allow job creation to be shown through indirect and induced methods.
  • Repayment Guarantee: A promise by the project or developer to return the investor’s capital under certain conditions, though such guarantees do not affect the investment’s eligibility for EB-5 requirements.
  • Request for Evidence (RFE): A formal notice from USCIS asking the petitioner to provide additional information or documentation to clarify or support their EB-5 application or petition before a decision can be made.
  • Reserved Visas / Set-Asides: Visas set aside by the RIA to spur investment into certain projects; 32% of the annual EB-5 visa quota is set aside into three separate categories:
    • Rural Areas (20%)
    • High-Unemployment Areas (10%)
    • Infrastructure Projects (2%)
  • Site Visit: On-site inspections of projects conducted by USCIS as an extension of the new integrity rules established by the RIA.
  • Source of Funds: Documentation proving that the EB-5 investment capital comes from lawful sources.
  • Sustainment Period: Time during which the investment must be sustained. Minimum two years, generally starting when the qualifying investment is made and made available to the job-creating entity.
  • TEA (Targeted Employment Area): The designation for high-unemployment or rural areas where the investment threshold for any related project is reduced to $800,000 and through which investors gain access to reserved visas.
  • Third-Party Lender: An external financial institution or entity that provides loans to the EB-5 project, separate from the investor’s capital investment.
  • Unreserved Visas: The remaining 68% (excluding the 32% reserved every year) of EB-5 visas available to all investors in non-reserved project categories.
  • Visa Backlog: When demand for visas exceeds the annual limits set by law, causing delays in Green Card processing. Backlogs are often the result of per-country caps and overall visa number shortages.
  • Visa Bulletin: Monthly publication by the Department of State showing visa availability.
  • Visa Retrogression: Occurs when demand exceeds supply, causing visa availability to move backward or become unavailable.

Two professionals in conversation during a meeting with charts in the background, illustrating EB5 project planning and investor discussions.

If you want help putting these terms into practice, EB5AN can guide you through today’s EB-5 investment landscape, explain what your timeline might look like, and outline the documents required at each stage. Schedule a free call with our team to discuss your situation, review current project options, and get clear answers on how the rules apply in your case.

Free EB-5 Project Evaluation

Understanding the EB-5 At-Risk Requirement

A businessman in a suit stopping a row of falling wooden dominoes, symbolizing EB5 investors managing financial risk under the at-risk requirement.

For families seeking a better future in the United States, the EB-5 visa program has become a key path toward permanent residency. However, the process includes many legal and financial steps, and missing just one of them can lead to delays or even denial of your petition.

One of the most important rules in the EB-5 program is the at-risk requirement, and many investors do not understand this rule when they begin their EB-5 journey.

In this article, we will break down the at-risk requirement in simple terms to help you make better and safer decisions for your future.

What Is the At-Risk Requirement?

An EB5 investor reviewing documents with a consultant holding a tablet, representing guidance on meeting the EB5 at-risk investment rule.

The at-risk requirement means that the investor’s money must be subject to both potential loss and potential gain. That is, the law does not allow investors to protect their funds from risk during the EB-5 process. This is why the money must be invested in a real commercial enterprise and used for job creation.

To count as at risk, an EB-5 investment must:

  • Be invested in a for-profit business.
  • Have no guaranteed return or repayment.
  • Show a chance of financial loss and gain.
  • Be used to create full-time jobs for U.S. workers.

When Does the At-Risk Period Begin and End?

A professional woman holding a USCIS EB5 petition form on a clipboard, clarifying whether petition approval is a criterion in the end of the at-risk requirement.

The at-risk requirement protects the original purpose of the EB-5 program, which is to encourage job creation in the U.S., not just offer a path to a visa in exchange for capital.

This period begins once the required EB-5 investment is made available to the business project, meaning the funds are actually deployed and subject to commercial use. Under current rules for post-RIA investors, the investment must remain at risk for at least two calendar years from that point. During this time, the capital must be actively used in the enterprise and exposed to the possibility of both gain and loss. Once the two-year sustainment period has passed and the job creation requirements have been met, the at-risk obligation ends. At that stage, investors may be eligible to receive a return of their capital, depending on the project’s terms.

How EB-5 Investors Can Meet the At-Risk Rule

To meet the at-risk rule, you must take steps to ensure your investment fits the legal standards. Here’s how to stay compliant:

  • Choose a strong investment project: Your money must go into a business that aims to make money, not a nonprofit, charity, or personal project. A low-risk regional center project would be ideal for this. Also, make sure the enterprise is legally formed and registered.
  • Avoid guaranteed returns: If a project or regional center offers to repay your investment with no risk, it does not meet the EB-5 rule. Therefore, you should be wary of contracts that mention fixed repayment dates, minimum returns, or complete capital protection.
  • Ensure the funds are deployed: Your investment should not sit idle in a personal or escrow account. It must go into the business and be used to support activities that lead to job creation.
  • Don’t remove funds too early: Early withdrawal, even if the project is complete, puts your Green Card at risk. Don’t withdraw before you’ve met the two-year sustainment and job-creation requirements—and only per the project’s terms (no guarantees).
  • Track and document fund use: Ask the business or regional center for regular reports showing how the money is used. You will need this proof when you file your I-829.
  • Work with experienced professionals: Hire an immigration attorney who understands EB-5 rules. They can help you review documents, avoid red flags, and stay compliant.

Key Exceptions and Considerations

Close-up of one hand passing U.S. dollar bills to another, illustrating EB5 investment funds being deployed into a project to stay at risk.

While the at-risk requirement is central to the EB-5 program, there are some nuances and exceptions that you should be aware of:

Redeemable Investments

EB-5 projects include the possibility of returning the investor’s funds after the at-risk period is over. This is allowed, as long as the return is not guaranteed and the money remains at risk during the required period. So, if USCIS sees a future repayment plan but no promise to repay, this will not cause compliance issues.

Regional Centers

Regional centers offer pooled investment projects that many EB-5 investors prefer. They often allow for lower involvement in daily business activities and some offer structured investment terms. Some investors wonder whether regional center structures conflict with the at-risk rule. However, USCIS allows certain structures in regional center investments, such as:

  • Preferred equity positions
  • Return of capital after job creation
  • Third-party repayment after the at-risk period ends

As long as the investment carries financial risk throughout the EB-5 process, these features do not disqualify the project.

EB5AN Can Help You Navigate the At-Risk Requirement

A group of EB5 professionals discussing project details on a tablet, symbolizing teamwork in ensuring investments meet at-risk rule compliance.

The at-risk requirement is one of the most important rules in the EB-5 program, and it is used to make sure that investors are truly supporting the U.S. economy. This is why mistakes around it can lead to delays or denial of your petition, even if you invest in a strong project.

At EB5AN, we help investors avoid common errors and select EB-5 projects that follow all program rules. Our team has guided more than 2,700 families through the EB-5 process to become permanent residents across 70+ countries.

If you want to make sure you choose projects that help you stay on track toward your U.S. permanent residency, schedule a free call with our team today.

Free EB-5 Project Evaluation

How Indian EB-5 Investors Can Protect Their Children From Aging Out

A group of Indian students sitting outdoors and studying together on a laptop, symbolizing EB5 families planning U.S. education opportunities while navigating age-out risks.

If you are an Indian parent applying for the EB-5 visa, you’re likely doing it for your children. You want them to live in the United States, study at good schools, and have a future filled with freedom and opportunity. But, there’s one rule that can suddenly change everything, and it is called the dependent age-out rule.

Here, your child will be ineligible as a dependent if they turn 21 before you complete the process. That means they will have to find a separate path to stay in the U.S because they can no longer get a Green Card with you. And unfortunately, this rule hits Indian families the hardest.

In this article, we will explain what the age-out rule is and how you can avoid it to protect your child’s future.

What Is the Age-Out Rule in the EB-5 Program?

An EB5 investor reviewing the U.S. State Department Visa Bulletin on a laptop at home, tracking Final Action Dates to calculate CSPA protection for dependent children.

USCIS defines a “child” as someone who is under 21 years old and unmarried. If your child meets both conditions, you can include them in your application for them to receive permanent residency as your dependent.

However, if your child turns 21 before the Green Cards are available, they may be denied because they no longer qualify as a dependent. This is called “aging out.” In this situation, your child will have to apply for a different visa or start their own immigration case.

Why Indian EB-5 Investors Face More Risk of Aging Out

The EB-5 program has a yearly cap on how many Green Cards go to each country. Since India is one of the countries with the highest demand, there is usually a visa backlog. This simply refers to a long wait between your petition approval and the time you can apply for the Green Card.

While nationals from countries with no backlog can move through the EB-5 process exceptionally fast, Indian EB-5 investors often end up having to wait, depending on their unique circumstances or investment category. And if you face backlogs or delays in your immigration journey, your child keeps aging, making it difficult for you to include them in your immigration case when they turn 21.

The Role of the Child Status Protection Act (CSPA)

To help families with processing delays, the U.S. Congress passed the Child Status Protection Act (CSPA) in 2002. This law allows some children to stay eligible under certain conditions, even if they turn 21. The major way this act works is that it freezes your child’s age while USCIS is processing your EB-5 petition (Form I-526E).

For example, let’s say you file your Form I-526E when your child is 20 years and 6 months old and USCIS takes 18 months to approve it. During those 18 months, your child’s age is frozen at 20 years and 6 months, making your child’s CSPA age still under 21. Nonetheless, you must know that once the petition is approved, you must move fast to file the next step because the age will start counting again.

To lock in CSPA protection, a visa must be available when USCIS approves your petition. Then, you must file the Green Card application (Form I-485 or DS-260) before your child’s real age reaches 21. If you miss that window, your child may lose protection.

Summarily, while the CSPA helps, it only works well if you:

  • Monitor your child’s age
  • Track your petition’s timing
  • Know when visas are available
  • File your Green Card applications on time

How to Plan Ahead to Avoid Aging Out

Immigration attorney meeting with EB5 investors, providing guidance on age-out rules and the Child Status Protection Act to protect dependent eligibility.

Below are practical ways to take advantage of the CSPA and prevent aging out:

1. Start Early

The best thing you can do is start your EB-5 process when your child is still young. If your child is 16 or 17, you have more time to complete the EB-5 steps and still stay within the age limit. Even if your child is 18 or 19, you still have time, but you must act fast. The earlier you file your I-526E, the more time you’ll have to benefit from the CSPA freeze.

2. Track the Visa Bulletin

You should check the Visa Bulletin every month to know when Green Cards are available. When you go through the bulletin, you will notice that it has two key charts:

  • Final Action Dates: Green cards are available when this date is current.
  • Dates for Filing: You can submit the Green Card application when this date is current.

You need to follow the final action date because the CSPA protection only works based on it. If your final action date becomes current, and your child’s CSPA age is under 21, you must file the Green Card application right away to lock in their age.

3. Use Concurrent Filing

In 2022, new rules allowed concurrent filing for EB-5 investors who are already in the United States. Concurrent filing lets you submit your EB-5 petition (Form I-526E) and your Green Card application (Form I-485) together, as long as a visa is immediately available to you. This approach can help your child benefit from CSPA protections and also provides lawful status in the U.S. while you wait.

4. Talk to an Experienced Immigration Attorney

The immigration process can be complex, and one mistake can cost your child their Green Card. This is why you should work with an experienced EB-5 attorney instead of managing the risks and pressures alone. The right EB-5 lawyer can help you calculate your child’s CSPA age, track the Visa Bulletin for your priority date, and help you file forms on time.

Work With EB5AN to Manage Age-Out Concerns

Two professionals in business suits shaking hands, representing EB5 investors partnering with experienced regional centers to secure Green Cards for their families.

Aging out can cause serious stress for you as an Indian EB-5 investor if it forces you to leave your children out of the Green Card process. However, gathering your documents in advance and working with an immigration attorney who understands Indian EB-5 cases can make all the difference.

At EB5AN, we have helped over 2,700 families from 70+ countries, including many Indian families, to become lawful permanent residents of the United States.

Book a free call with our expert team today to take the right moves before the Green Card clock runs out on your children.

Free EB-5 Project Evaluation

How to Extend Your H-1B Visa as an Indian Tech Worker

Diverse business professionals shaking hands in a meeting room, representing successful career transitions from H1B visa employment to EB5 investor status in the U.S.

Many Indian tech workers move to the United States with hopes of building long-term careers. While the H-1B visa allows them to live and work in the U.S., there is a six-year limit. Moreover, the dependency on employer sponsorship, dramatic policy shifts, and the Green Card backlog have made things more difficult for Indian nationals.

These challenges often force H-1B workers to make tough decisions. Some face job loss, while others want to switch employers but worry about losing status. Also, many do not qualify for other common visa types. With the pressure to act fast, workers need clear guidance on how to legally and safely stay longer in the country.

In this article, we will explain how Indian tech workers can extend their H-1B visas and how they can take advantage of the EB-5 program to stay permanently in the U.S.

Understanding How Long You Can Stay With Your H-1B Visa

An Indian tech worker looking at his smartphone in an office, symbolizing H1B employees researching EB5 visa opportunities for U.S. permanent residency.

The H-1B is a temporary work visa that starts with an initial period of three years and can be extended for three more, making a total of six years in most cases. After six years, you must leave the U.S. or move to a different visa type, unless you qualify for an exception. That said, here are a few things to note about this visa type:

  • The six-year limit includes only time spent in the U.S. on H-1B. If you traveled abroad, that time may not count.
  • If your employer has started your EB-2 or EB-3 Green Card sponsorship (by filing a PERM labor certification or Form I-140), you may qualify for H-1B extensions beyond six years.
  • If your job ends, you have a 60-day grace period to change employers, switch status, or leave the country.

How to Extend Your Stay With Your H-1B Visa

If your six-year H-1B period is ending, you may still have options to stay longer in the United States, especially if you’ve already started the Green Card process. Below are three common ways to extend your stay:

Option 1: Extend Your Stay With PERM and I-140

In the EB-2 or EB-3 Green Card process, your employer first files the PERM labor certification with the U.S. Department of Labor. It shows that your job is real, you are being paid a fair wage, and no qualified U.S. worker was available for the role. If your PERM or I-140 was filed at least 365 days before your six-year limit, you may qualify for a one-year H-1B extension under AC21.

Submitting the I-140 Petition comes after your PERM is approved and your employer files it with USCIS. It confirms that you qualify for the job and the company can support your Green Card process.

Once your I-140 is approved and your priority date is not current (visa number unavailable), you can apply for three-year H-1B extensions until a Green Card becomes available. This is the most common path used by Indian workers to extend their stay beyond six years. However, it requires early planning, ideally by year four of your H-1B.

Option 2: Switch to a Different Employer With H-1B Portability

You can switch jobs on an H-1B visa by using something called H-1B portability. This allows a new employer to take over your sponsorship, without needing to go through the lottery again. Here, your new employer must file an H-1B transfer petition with USCIS. You can start working once USCIS issues the receipt for a timely, nonfrivolous H-1B petition filed before your current status expires.

If you already filed for a Green Card, some parts, such as your priority date, may transfer to your new employer. But, your new employer will have to file a new PERM and I-140, unless your old I-140 was approved and meets portability rules. Although switching employers can be a good option, it is important to plan the timing carefully so you don’t fall out of status.

Option 3: Recapture Time Outside the United States

If you spent time outside the U.S. during your H-1B period, for work trips, vacation, or family visits, that time does not count toward the six-year limit. You can recapture that unused time by providing travel records like passport stamps or flight records when filing your extension. Even a few months can make a difference if your Green Card process needs more time.

EB-5 Visa: An Alternative Green Card Option for H-1B Holders

A group of young Indian tech professionals smiling and discussing work over a tablet, representing H1B visa holders exploring U.S. residency options through EB5 investment.

If extending your H-1B is not possible or if you are looking for a path with more flexibility, you may consider changing to a different U.S. visa, like EB-5. The EB-5 visa is a U.S. immigration option that offers foreign nationals a direct path to a Green Card by investing in the U.S. economy. To qualify for the program, you must meet the following requirements:

  • Minimum investment: You must invest either $800,000 in a targeted employment area (TEA), which includes designated rural areas or places with high unemployment, or $1,050,000 in a non-TEA project
  • Job creation: Your investment must create 10 full-time jobs for U.S. workers. If you invest through a regional center, the project will usually meet this requirement on your behalf by counting both direct and indirect jobs.
  • At-risk capital: The funds must remain “at risk” during the investment period, meaning there is no guaranteed return. However, reputable EB-5 projects are structured to protect investors while meeting legal requirements.
  • Lawful source of funds: You must prove that your investment capital came from a legal source, such as salary, property sales, loans, or gifts, and detailed documentation will be needed.

Why Is EB-5 a More Secure Alternative

While many H-1B workers face uncertainty due to job changes, visa expiration, and long processing times, EB-5 stands out because:

  • You don’t need employer sponsorship: With EB-5, you’re not tied to any employer. Instead, you invest your own money and apply as an individual, which gives you more freedom and fewer disruptions.
  • You can skip the PERM process: EB-5 does not require a labor certification. Therefore, you don’t need to go through the lengthy PERM process or prove that no qualified U.S. workers were available.
  • Your family is covered: Your EB-5 application can include your spouse and your unmarried children under 21, which gives them Green Cards at the same time as you.
  • You gain more flexibility: Once you receive your conditional Green Card, you are free to work in any field, start your own business, live in any state, and travel in and out of the U.S. more freely.

Transition to EB-5 With EB5AN

A happy Indian family at home, illustrating the benefits of EB5 visas for H1B holders seeking U.S. Green Cards for themselves and their children.

If you are an Indian tech worker on an H-1B visa, you already know how complex and uncertain the process can be. Whether you’re approaching the end of your six-year limit, stuck in a Green Card backlog under another category, or simply looking for more stability, now is the right time to explore the EB-5 visa.

EB5AN is committed to helping Indian H-1B workers understand and navigate the EB-5 process with confidence. So far, we have made more than 2,700 families from over 70 countries become U.S. Green Card holders.

Book a free call with us today to learn more about the EB-5 program and how our expert team can help.

Free EB-5 Project Evaluation

Understanding the Differences Between a Green Card and U.S. Citizenship

A smiling child holding a small American flag outdoors, symbolizing the dream of U.S. citizenship and a future in the United States.

For many people, the dream to move to the United States starts with a student visa or a work permit. For others, it begins with a family or investment-based application. But once you begin building a life in the U.S., you’ll likely face the choice between getting a Green Card or pursuing full citizenship.

On the surface, a Green Card and U.S. citizenship may seem very similar. Both allow you to live, work, and build a life in the United States. However, when you look closely, you will find clear differences that can affect your rights, responsibilities, and long-term plans.

In this article, we will explain the key differences between a Green Card and citizenship to help you know which option is better for your goals, family, and future.

What Is a Green Card?

A close-up of a U.S. permanent resident card placed on a black leather wallet, representing lawful permanent residency through a Green Card.

A Green Card, also called a Permanent Resident Card, allows a person to live and work in the United States on a permanent basis. The U.S. government issues Green Cards to people who qualify through family, work, asylum, or investment programs like the EB-5 visa.

You do not need to become a citizen to live long-term in the U.S. as a Green Card holder. As long as you follow the rules and renew your card every ten years, you can stay in the country, hold a job, and enjoy many of the same rights as citizens.

What You Can Do With a Green Card

If you own a permanent resident card, you can:

  • Live in any U.S. state, work in most jobs, and go to school.
  • Qualify for federal student financial aid, and also receive discounted in-state tuition rates at public colleges and universities.
  • Access social services like Medicare, health insurance, and life insurance.
  • Access the U.S. justice system.
  • Travel in and out of the U.S.
  • Buy a home, start a company, and open bank accounts.

What You Cannot Do With a Green Card

You cannot do the following with a Green Card:

  • Vote in federal, state, or local elections.
  • Hold some government jobs, especially those tied to national security.
  • Break U.S. laws or stay outside the country for too long, because you could lose your Green Card.

What Is U.S. Citizenship?

A hand holding a U.S. passport and boarding pass at an airport, symbolizing the travel freedom and global mobility that comes with U.S. citizenship.

U.S. citizenship is the highest immigration status you can get, as it makes you a full member of the country. If you are born in the U.S. or born to U.S. citizen parents, you become a citizen by birth. If you move to the U.S. and live there as a Green Card holder, you can apply for citizenship through a process called naturalization.

To apply, you must:

  • Be at least 18 years old.
  • Hold a Green Card for at least 3 or 5 years, depending on your case.
  • Live in the U.S. for most of that time.
  • Show good moral character.
  • Pass a U.S. history and civics test and an English test.
  • Take an oath of allegiance to the United States.

What You Can Do as a U.S. Citizen

As a citizen, you can:

  • Vote in all U.S. elections and help shape laws and policies.
  • Run for local, state, and national offices (except for President and Vice President, which require birth citizenship).
  • Apply for a U.S. passport, which gives strong international travel rights.
  • Sponsor more family members for Green Cards, including parents and married children.
  • Enjoy permanent protection from deportation, as your status cannot typically be revoked.

You are also expected to:

  • File all applicable U.S. taxes for life, including on income earned abroad.
  • Be ready to serve on a jury if called to do so.
  • Go through the Selective Service Registration (for males between 18 and 25 years old).

Main Differences Between a Green Card and Citizenship

Below is a summary of the key differences between a Green Card and citizenship:

Feature Green Card Citizenship
1. Legal Status Permanent resident Full citizen
2. Voting Rights Cannot vote Can vote in all elections
3. Job Options Restricted (especially federal jobs) No restrictions
4. International Travel Must avoid long stays outside the U.S. Can stay abroad without losing status
5. Deportation Risk Can be deported for crimes or long absences Cannot be deported (except for fraud)
6. Family Sponsorship Spouse and unmarried children only Parents, spouse, children (married or unmarried), and siblings
7. Passport Uses foreign passport Can get a U.S. passport
8. Civic Duties No jury duty or draft (optional) Must serve jury duty and register for draft
9. Duration of Status Must renew every 10 years Lifetime
10. Application Process Based on visa or family/work eligibility Requires naturalization process

Find Your Path Towards U.S. Citizenship With EB5AN

A smiling woman wrapped in an American flag, representing pride in U.S. citizenship and belonging to the American community.

While a Green Card offers strong benefits, citizenship gives you more protection but requires a deeper level of commitment. This is why navigating the path from a Green Card to U.S. citizenship takes planning, time, and the right support. If your immigration journey began through the EB-5 visa program, you don’t have to take the next steps alone.

At EB5AN, we have over a decade of experience in helping investors secure Green Cards while also preparing them for long-term success in the United States. With more than 2,700 families supported across over 70 countries, we can guide you through obtaining your Green Card.

To learn more about how you can become an EB-5 Green Card holder and eventually a U.S. citizen, book a free call with us today.

Free EB-5 Project Evaluation

The Hidden Risk in EB-5 Projects: What to Know About Pending RFEs

An EB5 investor closely examining legal documents for red flags such as pending RFEs before making an $800,000 investment.

Getting a U.S. Green Card through the EB-5 visa program is a big decision, as it requires a large financial commitment of at least $800,000. As such, every choice should be made carefully during the process, especially the EB-5 project you invest in.

This is because not all EB-5 projects are the same. While some follow the rules and give investors a strong chance at success, others may have problems that are not easy to see. One warning sign that you should never ignore is a pending request for evidence (RFE).

In this article, we will discuss why you should ask if an EB-5 project has pending RFEs and how it affects both your Green Card application and your financial future.

What Is an RFE?

Official approval process symbolizing USCIS review and potential issuance of RFEs to EB5 projects with incomplete documentation.

A Request for Evidence (RFE) is a letter sent by USCIS when it needs more information before making a decision on a petition. They are not denials; rather, they are issued when a petition does not fully meet the rules, so the applicant has the opportunity to fix the issue. If the applicant replies with enough evidence, their petition is approved. If not, it may be denied.

There are two types of RFEs that can be served in the EB-5 process:

  • Individual RFEs: These RFEs are sent directly to EB-5 investors. Here, the agency asks for more proof of details like lawful path and source of funds, identity or personal history, and business or income records.
  • Project-level RFEs: These RFEs are sent to the regional center or the EB-5 project itself when USCIS has not decided whether the project is good enough for EB-5 purposes.

How Did the RIA Change the EB-5 Review Process?

One key change the EB-5 Reform and Integrity Act of 2022 (RIA) made was the requirement that all regional center projects file Form I-956F before investors can file their I-526E petitions. Form I-956F is a project application that must include all required documents that prove the project meets EB-5 standards. These documents include:

  • Detailed business plan
  • Economic impact study
  • Loan or equity agreements
  • Fund use plan
  • Job creation model
  • Securities compliance proof

Any project’s Form I-956F that misses one or more of these details may get an RFE.

Why USCIS May Issue an RFE to a Project

Below are some common reasons a project may receive a request for evidence:

1. Unclear Job Creation Method

The EB-5 program requires each investment to create at least 10 full-time jobs. So, a project will be issued an RFE if it:

  • Lacks clear timelines or hiring schedules
  • Uses an unrealistic economic model
  • Does not show enough direct or indirect jobs

2. Problems With the Business Plan

Team reviewing job creation models, economic forecasts, and fund allocation to ensure EB5 project compliance and avoid RFEs.

A strong EB-5 business plan should include:

  • Timelines
  • Hiring schedules
  • Construction or development stages
  • Market data
  • Capital structure

If the business plan skips these details, USCIS may not trust the project’s job creation or financial projections, thus leading to an RFE.

3. Improper Use of Funds

The agency wants to see that investor money is used for job-creating activities, not for personal gain or unrelated purposes. Therefore, a request for evidence may question:

  • How funds are held or spent
  • The flow of capital
  • Whether the money stays at risk, as required

4. Conflicts of Interest

The RIA requires full disclosure of any actual or potential conflicts of interest between the regional center, project developer, or related parties. Thus, USCIS may issue an RFE if:

  • Conflicts are not disclosed in the offering documents
  • Investor waivers for conflicts, including permissible conflicts, are missing or incomplete
  • The developer has too much control over loan terms or project decisions

5. Problematic Backgrounds of Key Individuals

Every person with control over the investment, pooling, or use of EB-5 funds must submit Form I-956H with biometric information and background checks. USCIS screens for the following and may issue an RFE or deny the filing if it finds:

  • Fraud or deceit-related offenses in the past 10 years
  • Civil fraud judgments over $1 million
  • Convictions with over one year in prison
  • Involvement in drug trafficking, money laundering, terrorism, or human trafficking
  • Public discipline by financial regulators or professional boards

6. Annual Reporting Failures

Regional centers must file Form I-956G each year to report how EB-5 capital is used across projects. As such, missing this annual filing may result in compliance issues. If a project fails to file or update its records properly, it may get an RFE asking for current data.

Why Do Project-Level Pending RFEs Matter to You?

As an investor, you may not be directly involved in preparing the EB-5 project paperwork. However, your immigration success depends on that paperwork being solid. Here’s how a project-level pending RFE could impact your EB-5 process:

  • It can delay your I-526E petition: USCIS often won’t move forward with reviewing an investor’s petition if the project documents are incomplete. If the project has a pending RFE, your petition may be unattended to for months or even longer.
  • It can lead to denial of your petition: If the project fails to respond well to the RFE, or if USCIS rejects the response, your I-526E may be denied. That means no Green Card and a major loss of time and money.
  • It can block you later at the I-829 stage: Even if USCIS approves your I-526E, you must still file Form I-829 to get your permanent Green Card. If the project never fixed the problems raised in the RFE, it may not meet the job creation requirements later.
  • It may be a sign of deeper risks: Some RFEs reveal bigger issues like poor planning, weak financial structure, or bad management. If a project hides or ignores an RFE, it may not survive long enough for you to remove conditions and get permanent status.

Partner With EB5AN for Transparent EB-5 Projects

Advisors discussing project-level EB5 compliance and helping investors understand immigration risks related to RFEs.

RFEs can signal a serious problem with an EB-5 project, which is why you need to find out if a project has a pending RFE before investing in it. A transparent project will be willing to disclose any issues and how it plans to mitigate risk for you. However, one that fails to provide important information is a red flag and should be avoided.

For EB5AN, transparency is a top priority. Our team has over 10 years of experience, and over 2,700 families from more than 70 countries have partnered with us to successfully secure their Green Cards.

If you’re ready to explore safe and vetted EB-5 projects with no RFEs, book a free call with our expert team today.

Free EB-5 Project Evaluation

What Are the Risks Direct EB-5 Investments Carry After the RIA?

Digital legal icons connected to a gavel, representing increased EB5 compliance and legal oversight after the RIA.

When it comes to the EB-5 visa program, investors have two main options: the regional center route and the direct investment route. Compared with the regional centers, direct investment has always carried more responsibility because investors must personally manage or closely monitor the business.

In 2022, the EB-5 Reform and Integrity Act (RIA) became law and offered more protection to investors in regional center projects. However, direct investments did not get the same updates. In fact, they now face more pressure than ever.

In this article, we will explain how the RIA changed the EB-5 landscape and the key risks of direct EB-5 investments.

What Did the RIA Change?

Digital legal icons connected to a gavel, representing increased EB5 compliance and legal oversight after the RIA.

The EB-5 Reform and Integrity Act of 2022 was designed to improve oversight and restore trust in the EB-5 program. For years, investors faced risks tied to fraud, weak oversight, and poor project results. While the RIA addressed many of these concerns, its changes mostly focused on regional center investments.

Here are the key changes under the RIA:

  • Stronger government oversight: Regional centers now face more reporting rules and must submit annual statements. These documents must show how funds are used and how jobs are created.
  • Independent fund administration: Regional centers must use a third-party fund administrator. This rule helps prevent the misuse of investors’ money.
  • Visa set-asides: The RIA reserved set-aside visas for rural, high-unemployment, and infrastructure projects. These projects now move faster through the EB-5 pipeline, making them more attractive.
  • Job creation timeline: The RIA clarified when job creation must occur and gave investors a clearer window to meet requirements.
  • Investor protections: If a regional center shuts down or loses approval, the law protects existing investors. They do not lose their visa process if the shutdown is not their fault.

Key Risks of Direct EB-5 Investments Post-RIA

While the changes brought in by the RIA benefit regional center investors, direct investors do not enjoy the same level of support. Below are the key risks of making a direct EB-5 investment after the RIA:

1. Job Creation Risk

The core rule of the EB-5 program remains the same: the investment must create 10 full-time jobs for U.S. workers. In a direct investment, those jobs must be:

  • W-2 employees.
  • Working at least 35 hours per week.
  • Hired directly by the new commercial enterprise.

You cannot count indirect jobs like those in construction, supply chains, or nearby services because every job must be directly tied to your business. If your company does not hire enough qualified employees before your I-829 filing, you risk denial.

2. Increased Compliance and Documentation Requirements

Close-up of hands organizing EB5 documentation, highlighting the heavy paperwork burden of direct investments.

Direct investors must now follow more rules and prepare more documents. This includes:

  • Detailed business plans
  • Full job creation models
  • Payroll records
  • Tax returns
  • Operating agreements

You must prove that your investment is legitimate, that it remains at risk, and that it meets the job creation rules. You must also show that your business operates legally and follows all local and federal laws.

While regional center projects must file annual statements under the RIA, direct investors do not have that structure. You must handle your own compliance, and if you miss a detail, your petition could be denied.

3. Business Viability and Operational Risks

A direct EB-5 investment often means you are launching or funding a small business, which must succeed if you want to get your Green Card. However, small businesses face many challenges, like unclear market demand, cash flow problems, high competition, and labor shortages.

Furthermore, you are investing in a business and managing immigration goals at the same time. If the business closes or underperforms, your Green Card is at risk, as there is no backup plan.

4. Financial Risk and Capital Return

Concerned businesswoman reviewing financial charts and documents, illustrating the operational stress of managing a direct EB5 business.

EB-5 law requires that your investment remain at risk, meaning you cannot receive any guarantee that you will get your money back. While this applies to both regional centers and direct investments, the latter faces more capital risk because investors often put all their money into one small business.

There are limited exit strategies, so if your business fails, your capital may be gone. Also, you cannot sell your stake until job creation is proven and the investment term ends. Since most small businesses do not have buyers waiting to purchase investor shares, you could be tied to a failing business for longer than expected.

5. Source-of-Funds Verification Challenges

USCIS requires all EB-5 investors to prove that their money comes from legal sources. As such, you must show how you earned the funds, how the funds moved to the U.S., and that the funds belonged to you or were a lawful gift.

In direct investments, the source and path of funds reviews have become more intense. Because you play an active role in the business, the U.S. government may take a closer look at both your investment and your financial background.

Partner With EB5AN to Invest in Safe Regional Center Projects

Relaxed investor reviewing EB5 options presented by EB5AN, representing the peace of mind best regional center investments can offer.

While the EB-5 program remains an appealing pathway to U.S. residency, direct investments carry significant risks. This is why almost all EB-5 applicants invest in regional centers, where the risks are more evenly distributed, and the burden of compliance and job creation is often managed by professionals.

If you’re looking for a more secure path to U.S. residency through the EB-5 program, consider partnering with EB5AN. We’ve already helped more than 2,300 families from over 70 countries achieve permanent residency in the United States, and we’d be happy to guide you next.

Book a free call with our expert team today to gain access to top-quality, USCIS-approved EB-5 projects.

Free EB-5 Project Evaluation

Is EB-5 or E-2 the Better U.S. Visa Option for H-1B Workers?

A diverse group of confident professionals standing in front of a U.S. flag backdrop, symbolizing visa options for skilled H-1B workers seeking permanent residency through EB5 or E2 investment routes.

The H-1B visa helps many skilled foreign workers work legally in the United States while building their careers. However, the caveat is that if you lose your job, your visa is at risk. You have only 60 days to either find another employer, change your status, or leave the U.S.

This situation puts many H-1B workers under pressure and distress because the idea of leaving all they have built behind is hard. For those in this position, two options stand out: the E-2 treaty investor visa and the EB-5 immigrant investor visa. Although both involve investing in the U.S. economy, they are not the same.

In this article, we will explore how each one works and help you select the best option for yourself and your family.

What Is the E-2 Visa?

The E-2 visa is a nonimmigrant visa that allows people from certain countries to invest in and run a business in the United States. It is often called the “treaty investor visa” because it is only available to nationals of countries that have a trade treaty with the U.S.

To qualify for an E-2 visa, you must:

  • Be a citizen of a treaty country.
  • Invest a substantial amount of money in a U.S. business.
  • Own at least 50% of the business or hold a key managerial role.
  • Show that the business is real and active, not marginal or just set up to meet visa rules.

The E-2 visa allows you to live and work in the country while managing that business. Additionally, it is usually granted for two to five years, and can only be renewed as long as the business remains active and meets the requirements.

However, the E-2 visa is temporary and does not directly lead to a Green Card. That means you can live in the U.S. for several years on an E-2, but still have no clear path to permanent residency or citizenship.

What Is the EB-5 Visa?

A man holding a laptop in an office lobby, representing an H1B visa holder exploring EB5 and E2 visa alternatives to maintain legal U.S. status after job loss.

The EB-5 visa is an immigrant visa that allows foreign investors to obtain a Green

Card by investing in the U.S. economy. It is also known as the Immigrant Investor Program and is managed by U.S. Citizenship and Immigration Services (USCIS).

To qualify for the EB-5 visa, you must:

  • Invest $800,000 in a targeted employment area (TEA), or $1,050,000 in a non-TEA location.
  • Create at least 10 full-time jobs for U.S. workers.
  • Prove that the investment funds came from a legal source.
  • Keep the funds at risk for a set period of time.

With the EB-5 visa, after making the required investment, you can apply for a Green Card.

You will receive conditional residency for two years, during which time you must demonstrate that your investment has created or will create the required number of jobs. Once the conditions are met, your status can be upgraded to full permanent residency. For H-1B workers in distress, this visa can provide security and long-term peace of mind.

Why Is EB-5 a Better Long-Term Solution?

While both the E-2 and EB-5 visas involve investing in the U.S., only EB-5 leads to permanent residency. Beyond this key benefit, the EB-5 visa also offers the below.

1. You Enjoy Citizenship Benefits

With EB-5, you’re no longer tied to an employer, a business, or a visa that must be renewed. Therefore, you can work for any company or not at all, live anywhere in the U.S., and travel freely in and out of the country. Also, you can apply for U.S. citizenship after five years, which the E-2 visa simply does not offer.

2. You Don’t Have to Run a Business

The E-2 visa requires hands-on management of a business, which might not be easy, especially for someone who does not necessarily have relevant experience. In contrast, the EB-5 program offers the option of passive investment through regional centers. This means:

  • You don’t need to hire staff or manage day-to-day operations.
  • You don’t need business experience.
  • You can focus on your career, studies, or family.

3. Open to All Nationalities

Flags of various countries waving against a blue sky, representing global eligibility for the EB5 visa and the treaty-based limitations of the E2 visa.

The E-2 visa is only available to people from treaty countries. Therefore, workers from a country like India, who make up the majority of H-1B visa holders, do not qualify, even if they have the investment funds and business skills to invest.

On the other hand, the EB-5 visa is open to everyone, no matter your country of origin.

4. More Protection for Families

The EB-5 visa offers Green Cards for your family, including your spouse and children under 21. That means your spouse can work in any field and your children can attend U.S. schools and colleges. Moreover, you don’t need to worry about your child aging out or losing status. This kind of protection is important for H-1B families who want to settle and build a life in the U.S.

Secure Your Green Card With EB5AN

Hands gently shielding a smiling wooden family figure set, illustrating the EB5 visa’s family benefits, including Green Cards for spouses and children.

For H-1B workers facing uncertainty with their visa status, the EB-5 visa offers a more reliable, stable, and secure route to permanent residency.

At EB5AN, we understand how important getting a Green Card is to you and your family’s future. So, our team is here for you whenever you are ready to take this next step. We have helped more than 2,700 families from 70+ countries become lawful permanent residents of the United States, and we can help you too.

Book a free call with our expert team