How EB-5 Project Success Affects Your Chances for Green Card Approval

The EB-5 program allows foreign investors to place capital into the U.S. economy in return for permanent residency for themselves and their immediate family members. However, the process is not only about investing money. USCIS wants to see that your investment creates full-time jobs for U.S. workers and that your capital stays at risk for a required period of time.

As a result of these requirements, your chosen project directly affects your immigration outcome. As such, many investors worry about what happens if the project they invested in does not succeed. The answer is that it depends, because while some project failures do not endanger your Green Card, others may place it at risk.

In this article, we will guide you through the relationship between project success and getting your EB-5 Green Card.

An Overview of the EB-5 Investment Process

To qualify for the EB-5 program, an investor must meet specific requirements. The first one is to put in at least $800,000 if the project is in a targeted employment area (TEA). Projects in other locations require a minimum of $1,050,000.

Since the most important part of the EB-5 program is job creation, each investment must go into a new commercial enterprise in the United States that creates at least 10 full-time jobs for U.S. workers. This rule is central to the program and determines whether you qualify for a Green Card. Once the investment is made, you are to file your Form I-526E petition.

If USCIS approves it, you and your family can receive a conditional Green Card that lasts for two years. Before the two years end, you must file Form I-829, Petition by Investor to Remove Conditions on Permanent Resident Status. This form proves that your investment created the required jobs.

If USCIS approves the petition, you become an unconditional permanent resident. Then, after holding a Green Card for five years in total, including the two years of conditional residency, you may apply for U.S. citizenship through naturalization.

Key Factors About a Project That Determine Your Immigration Success

Your EB-5 project is more than just an investment opportunity; it is the foundation of your immigration outcome. As such, you should look at these key factors that determine whether your investment will lead to immigration success:

Job Creation Plans

Job creation is the most important factor in the EB-5 program and requires your funds to be linked to the creation of at least 10 full-time jobs for U.S. workers. How these jobs are counted depends on the type of investment, as explained below:

• Direct investment: Here, only jobs directly created by the business count.
• Regional center investment: In addition to direct jobs, investors can count indirect jobs (jobs created in the supply chain) and induced jobs (jobs supported by workers’ spending).

When you file Form I-829 to remove conditions on your Green Card, USCIS reviews whether the project created the required jobs. If the project does not meet the job creation target, your petition may be denied.

Adherence to the Sustainment Period and “At Risk” Rule

According to the U.S. immigration laws, your investment must remain “at risk” for at least two years. This means your funds must be placed in the project and subject to possible gain or loss throughout those two years.

Even though investors may worry about the risk of losing money, USCIS focuses mainly on whether the investment stayed at risk and created the required jobs. As such, a project can fail to produce profits and still help you secure a Green Card if these requirements are met.

However, if the project repays your capital too early or removes the investment from risk, it may harm your immigration outcome. That is why many investors rely on regional centers that follow USCIS rules for redeploying funds and keeping them at risk until the process is complete.

Does Project Failure Affect My Visa Status?

Not necessarily, because the financial success of an EB-5 project is not what USCIS uses to decide if you qualify for a Green Card. The key measure is job creation. So, you could still gain permanent residency even if the project loses money, as long as it created enough jobs.

But if the project fails before jobs are created, for example, through bankruptcy or poor management, your Green Card process could be at risk. Without evidence of job creation, USCIS may deny your I-829 petition. Because of this, you should focus less on the potential profit of a project and more on whether it has a clear, credible plan to meet job creation requirements.

Conducting Due Diligence Before You Invest

While the EB-5 program does not require an investment to be financially successful, choosing a strong and reliable project greatly improves your chances of receiving a Green Card and getting repaid. This is why careful due diligence is essential before committing your funds.

As an investor, you need to confirm that the project can realistically meet both the job creation requirement and the sustainment period rule. So, when reviewing a project, consider the following factors:

• Industry and location: Is the project in a stable or growing industry? Will the project’s location support long-term success and generate the required jobs?
• The project’s financials: Does the project have a sound business plan or a record of financial stability? For example, a real estate development that has already sold homes may carry less risk than one still in the planning stage.
• The track record of the developer: Has the developer successfully completed similar projects in the past? If the developer has worked with EB-5 funding before, did those projects create enough jobs for investors?
• The credibility of the regional center: If the investment is through a regional center, is it well-established and reputable? Has it sponsored other EB-5 projects that met job creation targets?

Doing thorough research lowers the risks tied to the EB-5 process. By selecting a reliable project, you increase your chances of meeting program requirements and securing permanent residency in the United States.

Increase Your Chances of Immigration Success With EB5AN

Since immigration success depends on project performance, you cannot treat an EB-5 project as a regular investment. You must think first about its job creation plans and compliance with USCIS rules. This is why carefully choosing your investment is the most important step you can take.

EB5AN provides guidance to investors throughout this process. If you would like to know more about how to select a strong EB-5 project, book a free call with our expert team today.