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.)
- I-526 (Standalone): For direct investors.
- I-526E (Regional Center): For regional center investors.
- 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.
- 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%)
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.