Call Today to Get Started With Your Visa!
15+ Years of High Success Rates

How to Pay EB-5 Investment with Installments?

The financial aspect of securing an EB-5 visa can seem overwhelming, especially when it comes to the large upfront investment. What if you can’t pay it all at once? What if your dream of becoming an entrepreneur in the U.S. remains…unfulfilled?

We absolutely understand your concern. For many investors, the EB-5 visa offers a promising opportunity. However, the required investment of $800,000 or $1.05 million can be a major hurdle for some. Fortunately, there’s an option that allows investors to pay in installments, easing some of that financial pressure.

In this blog, we’ll discuss how paying for your EB-5 investment in installments works and why it might be the perfect solution for investors managing their finances. 

 

Navigate Your Immigration Journey with Confidence

 

TL;DR 

  • Investors can file their EB-5 petition with partial investment (around $400K–$500K), with the full funds required before USCIS adjudication. 
  • Loans,  such as real estate-backed, HELOCs, or private lender loans, are an effective way to secure the $800K investment.
  • USCIS may adjudicate your petition sooner than expected, and the full investment must be in place before approval.
  • Incorrect structuring of installment plans or loans can lead to EB-5 petition denials.
  • Before proceeding, confirm with your regional center whether the project accepts installment-based payments. 

How does the Installment in the EB-5 Visa Work? 

How does the Installment in the EB-5 Visa Work

When considering the EB-5 visa, one of the most important aspects is the investment itself. The program requires a significant financial commitment, but there are options for structuring your payments. Let’s break down the various ways that you can manage this investment:

  • EB-5 Installment or Partial Investment

An EB-5 installment or partial investment refers to paying the required $800,000 (for TEA projects) or $1.05 million (for non-TEA projects) in phases rather than as a single lump sum. This option allows you to submit your I-526E petition with a portion of the total investment. 

This typically ranges from $400,000 to $500,000, depending on the structure of the project and USCIS approval.

The installment approach offers flexibility, allowing you to pay over time, usually within a 6 to 12-month window. 

USCIS Policy on Partial Investments

  • According to the updated policies under the revised I-526E structure, partial investments are now accepted, but there are specific rules investors must follow.
  • One key rule is that full investment must be made before USCIS adjudicates the petition. This means that, while you can file with a partial investment, the remaining funds need to be documented and made available before USCIS will approve your petition.

Both the initial and remaining amounts must be fully documented to prove that the funds are properly allocated and ready for deployment as intended.

Required Documentation 

The investor must submit several documents proving the legitimacy of the funds and their lawfulness. Required documentation includes:

  • The proof of initial payment, such as bank statements or wire transfer receipts, showing the partial investment amount.
  • A payment schedule outlining when the remaining balance will be paid, confirming the investor’s commitment to fulfilling the full investment.
  • Source of funds documentation proving that the partial payment is legally sourced, which can include tax returns, bank statements, etc.
  • An escrow agreement, if funds are held in escrow, detailing the terms of the arrangement.

These documents are necessary to ensure USCIS compliance and avoid delays in your EB-5 petition review.

Benefits 

There are several benefits to choosing the installment-based approach to EB-5 investments:

  • Early Filing: Paying in installments allows investors to file early, locking in a priority date and potentially accelerating the green card process.
  • Child Protection under CSPA: The installment approach helps protect children from aging out under the Child Status Protection Act (CSPA). Now, you can secure green card eligibility for children who might otherwise turn 21 before the process is complete.
  • Liquidity Flexibility: Investors are able to manage their funds more effectively by liquidating assets over time, avoiding the need to come up with the full amount upfront.
  • Concurrent Filing: For investors already in the U.S., the flexibility to pay in installments may enable them to file for an adjustment of status (concurrent filing), potentially speeding up the process.
  • EB-5 Loan

An EB-5 loan is a loan used to fund all or part of the $800,000 investment required for the EB-5 visa. The loan must be legally sourced and personally secured, meaning that the investor is responsible for the repayment of the loan.

However, loans come with their own set of rules and restrictions, which we’ll cover next.

Types of EB-5-Compliant Loans

There are several types of loans that are commonly used in the EB-5 program. Here are a few examples:

  • Real Estate-Backed Loans are typically property owned by the investor.
  • Some investors choose HELOCs (Home Equity Lines of Credit) to use a home equity line of credit to fund their EB-5 investment.
  • Investors may also receive secured family loans from family members.
  • Some investors opt to take out business-backed loans based on the equity in their business, using the business as collateral.
  • Loans from private lenders are also acceptable, provided that the loan agreement is clearly documented.

Each of these loans must meet specific criteria to be deemed EB-5 compliant. The key factor is that the loan must be secured by assets. Additionally, the investor must prove the lawfulness of both the loan and the repayment funds.

Loan Requirements

For an EB-5 loan to be valid, there are several key requirements that must be met:

  • The loan must be taken out in the investor’s name, not in the name of a third party, such as a family member or business partner.
  • The investor must prove that the loan funds come from a lawful source
  • The loan terms must reflect the investor’s personal risk and liability. The loan must be structured in a way that is consistent with the investment requirements.

Required Documentation

In order for USCIS to accept an EB-5 loan, the investor must submit a number of documents proving the legitimacy of the loan and the lawfulness of the funds. Required documentation includes:

  • The loan agreement details the terms and conditions of the loan.
  • Collateral proof showing the asset that secures the loan (e.g., real estate or business ownership).
  • Bank statements proving that the loan has been deposited into the investor’s account.
  • Tax filings and other financial documents that demonstrate the investor’s financial standing.
  • Evidence of the lawful source of both the loan funds and the repayment funds.

Properly documenting the loan and its sources is crucial in ensuring USCIS acceptance of the funds for the EB-5 investment.

Benefits

Using a loan for your EB-5 investment offers several benefits. Here’s how it can work for you:

  • Using Existing Assets: If you use assets like real estate or business ownership, you can fund the EB-5 investment without having to sell or liquidate your holdings.
  • Maintaining Cash Flow: A loan helps you avoid tying up all your capital, allowing you unhampered cash flow.
  • Flexible Repayment Terms: Loans often come with terms that allow you to structure payments over time, providing more financial flexibility.
  • Lock in Priority Date: Just like installment payments, using a loan allows you to file your EB-5 petition sooner.

These options provide you with wonderful options to try, but these are not without their challenges. To keep you ahead, we have listed all the common risks EB-5 investors face.

Also Read: EB-5 Visa Marketing Strategy Guide for Turkey

5 Common Challenges in EB-5 Investment with Installments

While paying for your EB-5 investment in installments or using a loan provides flexibility, it also comes with several risks and compliance challenges that you must carefully consider. How does the installment in the EB-5 visa work in these situations, and what should you be aware of? Here are some scenarios you might be aware of:

  • Early USCIS Adjudication 

One of the most important things to remember is that USCIS could adjudicate your petition sooner than anticipated. If the full investment isn’t made by the time your petition is reviewed, your application may be delayed or rejected.

  • Changing Source of Funds 

If you change the source of your funds after filing your petition, you must provide updated documentation. This could include showing where the new funds came from, how they were obtained, etc. Failure to provide clear documentation may trigger a Request for Evidence (RFE) or result in the denial of your petition. This will delay your visa processing.

  • Sustainment Period Timing 

The sustainment period refers to the requirement to keep your investment in the EB-5 project. This process begins only after the full investment amount has been made. If you are paying in installments, this could mean your investment isn’t officially counted as “sustained” until the last payment is made. This timing can affect your petition’s timeline and approval.

  • Types of Projects

Not all EB-5 projects are set up to accept installment payments. It’s important to confirm with the regional center or project developer whether they accept partial payments before proceeding. If the project doesn’t accept installments, you may need to explore other financing options or find a project that aligns with your payment structure.

  • Incorrect Structuring 

The way you structure your installment payments or loan for the EB-5 investment must comply with USCIS regulations. If the structure of the financing doesn’t meet the requirements, your EB-5 petition could be denied. Ensuring that all elements are in order, such as full payments before adjudication, can help you avoid potential issues.

If you need help understanding the risks or structuring your EB-5 investment, Contact the Law Offices of Sweta Khandelwal. We can help you handle these challenges and ensure your application is compliant.

To keep your maximum installment options open to avoid these challenges, you need to know the parameters of the right project partner.

How to Choose the Right EB-5 Project Partner?

How to Choose the Right EB-5 Project Partner

Selecting the right EB-5 project partner is critical when considering installment payments or financing options. How does the installment in the EB-5 visa work in relation to choosing the right project? Let’s explore what to look for to ensure a smooth, compliant process: 

  • Work Only with USCIS-Compliant Regional Centers: This is important as working with a non-compliant regional center can lead to delays, complications, or even denial of your petition.
  • Prioritize Transparency and Escrow Structures: Look for regional centers or projects that clearly outline their payment structures and have a reliable escrow system in place. An escrow account ensures that your funds are properly handled and only used for the intended purpose.
  • Documented Track Record: Ensure that your partner has documented evidence of their past successes and the timely approval of EB-5 petitions.

Looking for the right EB-5 project partner? Contact The Law Offices of Sweta Khandelwal to receive guidance on selecting the best regional center. We will ensure your investment structure meets USCIS guidelines.

 

Navigate Your Immigration Journey with Confidence

 

Final Thoughts

The option to pay your EB-5 investment in installments or through a loan offers flexibility and can make the process more manageable for investors. However, it’s important to understand the full scope of the program’s requirements to avoid legal complications. So, if you’re thinking, how does the installment in EB-5 visa works? Then your doubt is valid.  

It basically allows you to submit your petition earlier and provide more time to liquidate assets if needed. Don’t forget it requires careful planning and documentation.

Contact the Law Offices of Sweta Khandelwal today to ensure full compliance with the latest regulations. Sweta Khandelwal can provide the support you need to make informed decisions, and our team will help you every step of the way. If you’re unsure where to start, contact The Law Offices of Sweta Khandelwal for a personalized consultation for your specific needs.

FAQs

  • What are the basic EB-5 visa requirements?
    To qualify for the EB-5 visa, you must invest the required capital, show proof of the lawful source of your funds, and create at least 10 U.S. jobs through your investment.
  • What is the minimum investment required for an EB-5 visa?
    The minimum investment is $800,000 for projects in Targeted Employment Areas (TEAs) and $1.05 million for projects outside of TEAs.
  • How long does EB-5 visa processing take?
    Processing times can vary depending on your country of origin. The typical wait times range from 63.5 to 92.5 months or longer. However, it still depends on USCIS and visa backlogs.
  • Can I still get a Green Card by investing $500,000?
    No, the minimum investment requirement was increased to $800,000 in 2022. There are no exceptions for the $500,000 investment anymore.

Disclaimer

Please note that the prices listed for visa services are estimates and may vary in real-time. We recommend consulting the official government websites or other authoritative resources for the most up-to-date pricing information. These estimates do not constitute a guarantee of costs, and fees may change without notice.

Get Started With Your Visa

Share This Story, Choose Your Platform!

Recent Posts

Joint Ownership Scenarios for E-2 Visa Applicants

You’ve spent years planning and dreaming about opening a business in the United States. You’ve finally found the right partner, and together, you’re excited to dive in. But then, the question hits: “Can I be a co-owner under an E-2

LEARN MORE

Can Two Owners Apply for an E-2 Visa Together?

If you and a business partner are considering applying for an E-2 visa, you may be wondering if it’s possible for two owners to submit a joint application. The E-2 visa is specifically designed for individuals who wish to manage

LEARN MORE

Sweta Khandelwal

Sweta completed her Masters in Law from the University of California, Los Angeles and her JD from the Faculty of Law, Delhi University in India and has been practicing law for 15+ years getting visas, green cards, and citizenship for 1000+ clients, 100+ companies across 50+ nationalities.

Sweta has been recognized as a ” Super Lawyer, Rising Star,” and as amongst the ” Top 40 under 40″ immigration attorneys in California (American Society of Legal Advocates). She is also the recipient of the Advocacy Award by the American Immigration Lawyers Association.

Sweta is also a chartered accountant — the equivalent of a CPA. This makes her uniquely positioned to understand the immigration needs of her business clients in the broader context of their corporate objectives.

Sweta is actively involved with immigration issues and immigrant communities in various capacities. She has assumed key roles at the American Immigration Lawyers Association (AILA), both at the local and national level. She has been a past chair at the Santa Clara Valley Chapter at AILA and has also been involved in various practice area committees at AILA National. Sweta has addressed multiple conferences/forums in the United States and worldwide on immigration and business issues.

San Jose Office

95 South Market Street, Suite 410, San Jose, CA 95113
Phone: (408) 542-0499

San Francisco Office

404 Bryant Street, San Francisco, CA 94107 Phone: (408) 317-4662

San Jose Office

2225 East Bayshore Road, Suite 200 Palo Alto, CA 94303
Phone: (408) 317-4662

Contact Us