The EB5 Visa is one of the quickest and most straightforward pathways for wealthy individuals to obtain the coveted U.S. Green Card. All you need to do is invest $800,000 in a qualifying business or project in the United States. However, it’s important to be aware that your application could still face rejection for various reasons. In this article, we’ll explore these potential pitfalls and how to avoid them.
I’m Paresh Karia, the CEO of Acquest Advisors, an immigration advisory firm specializing in business and investment-based immigration to the U.S, Canada, Europe, and the UK. Over the years, we’ve helped numerous families achieve their dreams of migrating to these countries.
Reason 1: Failure to Demonstrate a Legitimate Source of Funds
One common myth is that the Startup Visa is exclusively for tech startups. However, this couldn’t be further from the truth. While tech startups certainly qualify, this program is open to a broader range of innovative and unique businesses. These could include businesses primarily in IT systems or product development, application businesses, or even conventional businesses that integrate information technology in innovative ways. The key criterion is that the business must be innovative and have the potential for global scalability.
Reason 2: Inadequate Job Creation
The EB5 Visa is an employment-based immigration program that necessitates the creation of a minimum of 10 full-time jobs for U.S. workers. Failure to provide credible evidence that these jobs have been created could lead to rejection.
To gain a deeper understanding of the job creation requirement, please watch the following video:
Reason 3: Non-Compliance with Regional Center Regulations
Data shows that more than 90 percent of investors choose to invest in projects through Regional Centers, designated entities established to facilitate investment and job creation. Non-compliance with Regional Center regulations could result in rejection. Therefore, it’s crucial to conduct thorough research and select a Regional Center with a strong track record and a history of successful project execution. To learn more about Regional Centers, please watch our video linked above.
Reason 4: Inaccurate or Incomplete Documentation
USCIS (U.S. Citizenship and Immigration Services) requires extensive documentation to support your EB5 application. Ensuring you gather and submit all relevant documents, such as tax returns, financial statements, identity documents, valuation reports, and business licenses, is vital. Working with an experienced EB5 attorney can help ensure that your documentation is correct and complete.
Reason 5: Failure to Maintain Investment
To remain eligible for EB5, you must maintain your investment until the conditions on your initial Green Card are removed, typically about two years. Rejections could occur if you withdraw your investment prematurely.
Reason 6: Ineligibility of the Investment Project
Your application could be rejected if you invest in a project that does not meet the EB5 program’s requirements. This includes investing in a project that doesn’t meet the Targeted Employment Area (TEA) requirement or one that doesn’t create the required jobs.
Reason 7: Improper Use of Funds by the Project
It’s essential that the funds are used by the project for their intended purpose. If the funds are not appropriately utilized, it could raise concerns regarding job creation and compliance with program requirements, potentially leading to rejection.
While the EB5 Visa may appear to be an accessible gateway for those with the financial means to obtain a U.S. Green Card, it’s critical to take into account the factors mentioned above and others to ensure that your application is not rejected. To learn how to increase the likelihood of success for your EB5 application, click on the link below and schedule a call with our EB5 expert.
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Thank you for considering Acquest Advisors as your partner on this exciting journey.