EB-5 Immigrant Investor

Evaluate client situation for best approach: (1) Direct vs Regional Center — consider client's management ability, risk tolerance, investment horizon; (2) TEA designation — whether investment area is high-unemployment or rural, reducing investment to $800,000; (3) Priority date planning — Regional Center TEA projects have visa set-asides (32%), may have no backlog.

1-4 weeks

Post-2022 RIA, Regional Center TEA projects have 20% visa set-aside, rural projects also have set-aside. Under new law, Regional Centers must be re-authorized/compliant.

This is the most critical and complex part of EB-5. Review and document lawful source of investment funds: (1) trace fund origins (salary, business profits, property sale, stock investments, gifts, inheritance, etc.); (2) track fund pathway (complete transfer chain from source to investment account); (3) prepare 5+ years of tax returns, bank statements, property transaction records, business financials, etc.

4-12 weeks

Source of funds is the most common RFE and denial reason in EB-5. Every dollar's origin and transfer must be documented.

For Regional Center projects: (1) Review RC's USCIS authorization status and compliance history; (2) Review PPM (Private Placement Memorandum) and project docs; (3) Evaluate job creation economic model (typically RIMS II or IMPLAN); (4) Review project developer's track record and reputation; (5) Confirm TEA designation validity. For Direct: review business plan feasibility and job creation plan.

2-4 weeks

Regional Center: confirm USCIS authorization status (post-RIA requires re-authorization or annual compliance filing). Prepare project documents: PPM, operating agreement, subscription agreement, economic analysis report (RIMS II/IMPLAN). Direct projects: register new entity or confirm existing entity's investment structure.

If project in TEA: obtain TEA designation letter from state government or USCIS. Prepare job creation plan: Direct requires hiring 10 full-time W-2 employees; Regional Center can calculate indirect jobs through economic model. Provide construction timeline and hiring plan.

Receive investor funds into project account. Provide proof of fund receipt, executed subscription agreement, fund deployment plan. Ensure funds are at-risk (no guarantee of return of capital or interest).

Any guarantee of return of capital or interest will fail the at-risk requirement and result in USCIS denial.

The most important step. Organize and prepare lawful source of funds documentation: (1) Salary — 5+ years pay stubs/tax returns/bank statements; (2) Business profits — company financials/audit reports/dividend records; (3) Property sale — purchase contract/title deed/sale contract/transfer records; (4) Stock investments — brokerage account records/transaction history; (5) Gift — gift agreement/donor's source of funds; (6) Inheritance — will/inheritance certificate/asset valuation. Track every dollar from source to investment account.

4-12 weeks

Common challenges for Chinese investors: (1) incomplete tax records for early income (2) foreign exchange controls limiting fund transfers (3) complex multi-step fund chains. Professional financial planning needed.

Evaluate investment options with attorney: (1) Direct — industry knowledge, willing to manage, invest $1,050,000 (TEA $800,000); (2) Regional Center — passive investment, project-managed, invest $800,000-$1,050,000 + admin fees. Assess project risk, RC historical approval rate, investment exit timeline.

Transfer investment funds to designated project account. Sign investment/subscription agreements. Retain all transfer records and receipts (wire transfer confirmations, forex records, receipt confirmations). Ensure funds are at-risk (understand investment may be lost).

Compile and file I-526E petition (new form post-RIA). Include: investment proof (funds committed or at-risk), complete source of funds documentation, business plan (direct) or project documents (Regional Center), job creation plan/economic model, TEA designation proof (if applicable).

EB-5 RFEs are very common (>50%). Most common RFEs: (1) unclear source of funds — supplement fund pathway evidence; (2) insufficient at-risk evidence — prove funds are actually invested and at risk; (3) insufficient job creation — supplement economic analysis; (4) business plan deficiencies — revise and strengthen feasibility arguments.

After I-526E approval: file I-485 or consular processing for 2-year conditional green card. Within 90 days before conditional GC expiry, file I-829 to remove conditions: prove investment sustained and jobs created/maintained. After I-829 approval, receive permanent green card.

I-829 must be filed before conditional GC expires, or GC becomes invalid. I-829 must prove investment and job creation conditions are still met.

Provide supporting documents when investor files I-829: job creation proof (W-2 for direct, economic analysis update for RC), investment sustaining proof, project progress report. Regional Centers must provide annual compliance reports.

After I-829 approval, arrange investment exit per project agreement. Regional Center: typically distribution and exit after project completion (5-7 years) per PPM terms. Direct: investor can sell shares or liquidate the business.

Provide attorney with all source of funds documents and investment proof. Review personal information and fund arguments in the I-526E package. If RFE issued, cooperate with supplemental documentation.

After I-526E approval: file I-485 in US or consular processing abroad. After receiving 2-year conditional GC, you and family (spouse and unmarried children under 21) can live and work in the US. Maintain investment — do not withdraw funds before conditions are removed.

During conditional GC period, do not leave the US for extended periods (>6 months may affect status). Maintain investment until I-829 approval.

File I-829 within 90 days before conditional GC expiry. Must prove: (1) investment has been sustained (not withdrawn or substantially reduced); (2) 10 full-time jobs have been or are being created (Direct needs W-2 records, RC needs updated economic analysis). Permanent green card issued after I-829 approval.

After I-829 approval, investment can be exited (Regional Center projects typically have 5-7 year investment period). After permanent GC, maintain: US tax residency, physical presence requirements, avoid extended absences that could jeopardize GC.