Masami Hibino

EB5 application fail

What are the likely criteria for an EB5 application to fail?

Answers

Marko Issever
May 28, 2018 04:55 PM  Marko Issever

The EB5 application could fail principally due to one of two reasons. One reason could be project related. The other would be individual applicant related. If the project cannot create or deem to create at least the required number of jobs then the applicant’s EB5 visa could be denied. At the same time, if the applicant’s proof of source of funds is not satisfactory to the USCIS authorities, he could get an RFE (request for evidence). If he cannot produce the type of evidence USCIS is looking for, his application could be denied. Typically, applicants who fund their investments with earned income or sale of inherited property where the official sale price supports the required investment amount, do not receive RFE’s. Other accepted funding methods of the required investment are collateralized loans or gifted funds. In each of these latter cases, there is still a need for proof of funds. In the loan case, USCIS scrutinizes the source of funds for the purchase of the collateral used for the loan. In the “gifted funds” case the donor would have to prove how he earned the funds he is donating the applicant. In summary, as long as the project can create the required number of jobs, the applicant does not have an issue with source of funds, and the applicant has a clean personal record, his/her EB5 application would most likely be approved.

Philip Cohen
December 12, 2018 10:59 AM  Philip Cohen

As a service provider, we are often called upon to assist with RFEs. Another consideration that might trigger a failure is a poorly-justified business plan. This could include financial projections that are not based on anything other than conclusive assumptions, or projecting job creation that is much higher than is really needed. The bottom line is credibility.

Back

Securities Disclaimer

This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.