The EB-5 program requires a careful selection of regional centers and EB-5 projects to meet USCIS requirements and achieve immigration success. As a result, to ensure their investment is successful, EB-5 investors must conduct extensive due diligence before investing in a regional center-sponsored EB-5 project.
Most investors, however, end their due diligence at the project selection and capital deployment stage. After receiving their I-526E petition approval and conditional Green Card, many investors pay little attention to the remaining stages of the EB-5 process. They assume that their investment will remain in good standing and that they’ll receive legal permanent resident status after two years. This, unfortunately, is not always the case.
While regional center and project selection is a critical component of the EB-5 process, it does not automatically guarantee a successful regional center investment. Investors’ due diligence must continue throughout their conditional residence. Without this, an investor may not qualify for the removal of the conditions on their Green Card and may lose their immigration status.
In this article, we’ll discuss how you can ensure your investment continues to qualify for the immigration benefits of an EB-5 visa.
Best Practices for Safeguarding EB-5 Investments
- Monitor Regional Center Compliance
- Analyze Monthly/Quarterly Reports
- Monitor Industry News and Updates
- Seek Form I-829 Support and Documentation
How EB5AN Prioritizes Transparency in Managing Investors’ Resources
Best Practices for Safeguarding EB-5 Investments
Success in EB-5 investment entails two things for an investor: acquiring legal permanent resident status and recouping their invested funds. The investment must remain eligible for at least two years to achieve EB-5 investment success. Hence, EB-5 investors need to continue to scrutinize the project and regional center even after receiving their I-526E approval.
Below are some ways to do this.
Monitor Regional Center Compliance
Every regional center must submit Form I-956G, Regional Center Annual Statement, to the United States Citizenship and Immigration Services (USCIS) at the end of each fiscal year. Regional centers use this form to provide the required information, evidence, and certifications that prove their continued eligibility for regional center designation.
Each approved regional center must file Form I-956G for each federal fiscal year (October 1 –September 30) on or before December 29 of the calendar year in which the fiscal year ends. Failure to do so may result in sanctions, including terminating the regional center’s designation. USCIS can also terminate a regional center’s designation if it fails to provide adequate supporting evidence in its I-956G submission.
The termination of a regional center’s designation may affect active EB-5 investors’ eligibility for removal of their Green Card conditions.
Consequently, EB-5 investors must maintain contact with their regional center even after receiving their conditional Green Cards, asking them regular questions to verify that they remain compliant with USCIS guidelines. For instance, investors can ask for proof of annual Form I-956G submissions and then follow up on whether USCIS deemed the regional center to still be eligible for their designation.
Analyze Monthly/Quarterly Reports
An EB-5 investment is a significant investment, and like with other forms of investments, EB-5 investors have the right to know the state of their investment over time. To keep investors updated, regional centers should provide at least quarterly reports that enable investors to follow the project’s progress and their investment’s status.
Regular reports will help you monitor how the invested funds are used to ensure they align with the business plan submitted with your I-526E petition. They’ll also enable you to ascertain if the required jobs are being created as projected and if the project is profitable.
Regular reporting also significantly reduces any risk of fraud and mismanagement. By analyzing the project’s quarterly reports and financial statements, you can spot any irregularities and take necessary action to safeguard your investment and immigration status.
Monitor Industry News and Updates
The EB-5 immigration program is subject to legislative and policy changes. The magnitude and frequency of these changes vary and can significantly impact active EB-5 investments. Hence, EB-5 investors must stay informed on industry developments and policy updates.
It may be challenging, however, for foreign investors to follow industry events and policy changes because the U.S. system may differ significantly from what they’re accustomed to in their home countries. Because of this, regional centers should work to keep EB-5 investors updated on any relevant news, as well as their implications.
While some regional centers may not see the need to do this, honest and transparent regional centers know it’s essential to protecting investors’ immigration and financial interests.
Staying informed is non-negotiable, and you should be able to contact your regional center and speak with the principals if you need clarification on any policy change or industry update you hear about.
Seek Form I-829 Support and Documentation
Filing Form I-829, Petition by Investor to Remove Conditions on Permanent Resident Status, is the last step in the EB-5 Green Card process. However, because it comes far into the EB-5 process, EB-5 investors do not give it much thought until it’s time to remove the conditions on their Green Card. This is a mistake, as a successful I-526E petition does not necessarily guarantee I-829 approval.
A regional center investment must meet all the requirements stated in an investor’s approved I-526E petition for the investor to qualify for the removal of conditions. Their I-829 petition must prove that the required investment—either the standard $1,050,000 or $800,000 if the investment was in a targeted employment area—was sustained through at least two years and created 10 full-time jobs.
If USCIS determines that the investment does not meet these requirements, it may deny the investor’s petition, and the investor will lose their immigration status. This means an investor needs to be sure that their I-829 petition will be handled properly at the end of the EB-5 process.
The regional center is responsible for providing the required supporting documentation and evidence for Form I-829 filings.
To make sure you’ve picked the right regional center to handle these concerns, when conducting due diligence, you should inquire about a regional center’s investors’ I-829 approval rate and the information and supporting documentation they provide for I-829 filings.
How EB5AN Prioritizes Transparency in Managing Investors’ Resources
EB5AN leads the industry in transparent practices. We’ve been implementing industry best practices and prioritizing transparency through all the stages of the EB-5 process long before the RIA was enacted.
We conduct thorough due diligence on every EB-5 project and only offer our clients low-risk projects. We operate independently to eliminate any conflicts of interest that can affect our clients’ financial and immigration goals.
EB5AN maintains strict compliance with USCIS guidelines and submits all required forms on time to ensure our regional centers are in good standing. In over 10 years of operation, we’ve never received a notice of intent to terminate (NOIT) from USCIS.
We also work hard to make sure our investors stay informed. EB5AN’s investors receive quarterly reports on project progress, unit sales, and job creation. Our clients all enjoy direct access to the company principals for any needed clarification. We also provide all the documentation investors need to conduct due diligence and file their I-526E petition before they ask.
Another aspect of EB5AN that sets us apart is the resources we offer to all investors and developers, even those we don’t work with directly—in an effort to make the industry as a whole more transparent, we provide free, high-quality resources to keep investors and developers informed on the various aspects of the EB-5 process.
For more information about the EB-5 process, book a free one-on-one session with our expert team today.
