FAQs
(Costs Associated with the Program)
Costs Associated with the Program
In addition to the $800,000 investment, what associated costs should the investor expect throughout the process?
- USCIS filing fees
- Immigration attorney fees
- Administration fee, which is paid to the Regional Center to support its costs for performing due diligence on the project.
Please refer to the table below for more information on the fees charged at each stage of the process.
| I-526 Filing | Adjustment of Status | I-829 Filing | Totals | |
|---|---|---|---|---|
| USCIS filing fees | $4,675 | $2,210 | $9,525 | $16,410 |
| Immigration attorney fees (average) | $22,500 | $2,500 | $5,000 | $30,000 |
| Administration fee (average) | $70,000 | $70,000 |
What other out-of-pocket expenses may arise?
There are no other fees directly associated with filing an EB-5 application itself. However, an investor may have out-of-pocket expenses associated with certification of legal documents in their home country, travel expenses to attend consular appointments or to meet the minimum travel and stay requirements, or if the client chooses to hire any third-party advisors for tax or estate planning.
Does rejection of I-526 or withdrawal affect the ability to apply for other types of US visas in the future?
The denial or withdrawal of an I-526 petition generally does not directly impact an individual’s ability to apply for other US visas in the future. A denial or withdrawal does not inherently create a bar to future non-immigrant or immigrant visa applications. However, consular officers or USCIS may review prior immigration history, including a withdrawn or denied I-526 petition, when evaluating future applications. For non-immigrant visas, which require demonstrating non-immigrant intent, a withdrawn I-526 petition (indicating prior immigrant intent) may raise questions, but withdrawal itself aligns with non-immigrant intent. Full disclosure of prior applications is advisable to maintain transparency during future visa processes.
What is the most common reason for denial of an I-526 petition?
An EB-5 investor must apply to USCIS by submitting Form I-526E (or I-526 for direct investments) along with a comprehensive package of supporting evidence. This typically includes:
- Personal Documents: Passports, birth and marriage certificates, police clearances, and US immigration history (if applicable) for the principal applicant and all dependents.
- Investment Documents: Proof of the capital investment into a New Commercial Enterprise (NCE), including evidence of funds transfer, investment agreements, and project-specific documents (e.g., Regional Center approval for the project).
- Source and Path of Funds Documentation: Detailed evidence proving that all invested capital was lawfully obtained and traced from its origin (e.g., salaries, business profits, property sales, gifts, loans, inheritance) to the EB-5 project. This is a critical and heavily scrutinized component.
- New Commercial Enterprise (NCE) and Job Creation Documents: A robust business plan detailing how the NCE will create at least 10 full-time jobs for US workers within two years. For Regional Center projects, this typically involves an economic analysis demonstrating job creation.
All foreign language documents must be accompanied by certified English translations. Engaging an experienced immigration attorney is highly recommended to ensure proper preparation and submission of all required documentation.
If the I-526 application is rejected, what is the procedure for return of capital?
In the event of an I-526 petition denial, the procedure for the return of capital is typically outlined in the EB-5 project’s Private Placement Memorandum (PPM). Reputable regional centers often include provisions for an I-526 denial guarantee, ensuring that investors’ capital is returned, usually within 90 to 180 days, depending on the project’s terms and escrow agreements. The specifics vary by project, so investors should review the PPM carefully with their immigration attorney.
Key points to consider:
- High Approval Rates: EB-5 I-526 approval rates remain high, with recent data (as of September 2024) from the Immigrant Investor Program Office indicating approximately 96% for rural projects and 93% for high-unemployment area (HUA) projects.
- Common Denial Reason: Denials often result from inadequate documentation of the lawful source of funds. Reputable regional centers and their immigration partners carefully vet investors to minimize this risk and ensure compliance with USCIS requirements.
- Project Safeguards: Industry best practices dictate that EB-5 projects clearly specify capital return procedures in the PPM for cases of I-526 denial, providing clarity and protection for investors.
Can an investor withdraw their I-526 application and investment at any stage?
Investors, typically through their immigration attorney, may withdraw their I-526 petition at any time before USCIS adjudicates it by submitting a written request to USCIS. The withdrawal is effective upon submission of the request, though USCIS may take several weeks or months to confirm receipt, as this is not a priority process. The return of the invested capital depends on the terms outlined in the project’s Private Placement Memorandum (PPM), which typically specifies the timeframe and conditions for refunding the investment, often ranging from 90 to 180 days, depending on the project’s escrow agreement.
After getting the Green Card, can an investor withdraw from an investment which created 10 jobs?
After the I-829 petition is approved, removing the conditions on the investor’s permanent resident status, the investor may request the return of their capital from the EB-5 project. However, the ability to withdraw the investment depends on the terms outlined in the project’s Private Placement Memorandum (PPM). Typically, regional center projects involve loans to developers with set repayment schedules, so the return of capital may not be immediate and could take months or years, depending on the project’s structure and loan terms.
What are the reasons why a petition may be denied? Would the capital invested be returned?
I-526 Petition Denial Reasons: An I-526 petition may be denied for the following reasons:
- Inadequate Source of Funds Documentation
USCIS may deny the petition if the investor fails to provide complete and transparent documentation proving the lawful source of the invested capital, such as a clear paper trail from sources like salary, property sales, or gifts to the New Commercial Enterprise (NCE). - Non-Compliant EB-5 Project
The petition may be denied if the project does not meet EB-5 program requirements, such as lacking a valid I-956F approval for regional center projects, failing to qualify as an NCE, or not demonstrating the creation or preservation of 10 full-time jobs.
Working with a reputable regional center and experienced immigration attorney is crucial to ensure compliance with USCIS requirements for both the source of funds and project structure. In the event of an I-526 denial, industry best practices typically include provisions in the project’s Private Placement Memorandum (PPM) for returning the investor’s capital, often within 90 to 180 days, depending on the project’s escrow agreement.
I-829 Petition Denial Reasons: An I-829 petition may be denied for the following reasons:
- Failure to Create or Sustain Required Jobs
The petition may be denied if the NCE does not create or preserve at least 10 full-time jobs (minimum 35 hours per week) for qualifying US workers, as evidenced by payroll records or economic reports for regional center projects. - Failure to Maintain US Residency
The investor must demonstrate they have not abandoned US residency during the two-year conditional residency period. Extended absences (typically over six months) without a re-entry permit may lead to denial, as USCIS evaluates residency intent.
Capital Return After Denial: For an I-526 denial, the return of capital is governed by the project’s PPM, which typically outlines refund procedures, with funds often returned within 90 to 180 days, depending on escrow terms. For an I-829 denial, investors may request capital return after the conditional residency period, as the investment is no longer required to remain “at risk” post-I-829 filing. However, the timing and feasibility of the return depend on the project’s structure and loan repayment terms outlined in the PPM. A denial at the I-829 stage does not typically require a separate request for capital return if already initiated.
What if I want to manage my own business?
If you want to actively manage your own business, you should consider the Direct Investment approach to EB-5. This involves investing the required capital—currently $800,000 in a Targeted Employment Area (TEA) or infrastructure project, or $1,050,000 in a non-TEA—directly into your own business, which you control. You must then create at least 10 full-time qualifying jobs within that new commercial enterprise.
On the other hand, if your primary goal is to obtain a Green Card but you do not wish to actively manage a business day-to-day, it is often more convenient, less risky, and potentially more cost-effective to participate in a structured Regional Center EB-5 investment program rather than starting and maintaining your own direct business.
You can learn more about the differences between Direct and Regional Center EB-5 investments here:
https://www.lcrcapital.com/blog/eb5-direct-vs-regional-center/
Can the EB-5 investment be in any type of business? How long does that process take incase he wants to invest directly.
Yes, an EB-5 investment can be made in any legitimate for-profit commercial enterprise operating in the United States, as long as it can credibly demonstrate the creation of at least 10 new full-time jobs held for a period of 2 years from the time of investment, and all other EB-5 program requirements are met.
There are important differences in rules and benefits between making a Direct Investment and investing through a Regional Center. Direct investments require direct job creation within the enterprise, while Regional Center projects can count direct, indirect, and induced jobs.
The timeline for a Direct Investment varies widely depending on factors such as the specific business, project complexity, and USCIS processing times. Because of these variables, it is strongly recommended to consult with an experienced immigration attorney to receive a tailored assessment and guidance on expected timeframes.
Can several investors combine or "pool" their investment capital through one Limited Partnership?
Yes. The Regional Center program regulations specifically allow the pooling of funds by multiple investors to establish a Limited Partnership large enough to qualify all participating investors.
However, each investor must individually meet the minimum at-risk capital requirement (currently $800,000 for investments in Targeted Employment Areas) and the job creation requirement of at least 10 full-time jobs sustained for 2 years.
This means that while the capital can be pooled, every investor is still individually responsible for their own investment amount and job creation obligations under the EB-5 program.
What is the difference between a Regional Center and a Direct EB-5 project?
While the fundamental immigration process is the same for both approaches, key differences exist in several important aspects:
Project Structure & Investment Type:
The Direct EB-5 program typically requires an equity investment directly into an operating commercial enterprise, often structured as an LLC, where the investor actively manages or controls the business. On the other hand, the Regional Center approach involves pooling investor funds into a fund (usually a Limited Partnership or LLC), which then deploys capital into a Job Creating Enterprise (JCE). These investments are often structured as either debt or equity. Regional Center projects generally involve larger-scale developments, while Direct investments tend to focus on smaller projects.
Job Creation Methodology:
In Direct EB-5 investments, only direct full-time jobs created within the investor’s own business are eligible. These jobs must be verifiable and maintained for at least two years.
Regional Center projects offer greater flexibility: they allow counting direct jobs, indirect jobs (jobs created in businesses that supply goods or services to the project), and induced jobs (jobs created in the local economy as a result of the spending by direct and indirect employees). This broader scope often makes it easier for investors to meet job creation requirements through a Regional Center.
For a detailed explanation of the differences between these two EB-5 structures, please see:
https://www.lcrcapital.com/blog/eb5-direct-vs-regional-center/