For most EB-5 investors, the minimum investment of $800,000 is not a trivial amount. Many investors must liquidate assets to compile the required amount. Getting all the required funds together can take months, allowing other EB-5 investors to secure a place in line before them.
However, investors who need time to round up some of their investment funds may not need to wait until they have all the funds secured to file their I-526E petition. Instead, they may be able to take advantage of partial funding.
How Partial Funding Works
Partial funding allows an EB-5 investor to file their I-526E petition before the full investment amount has been transferred to the EB-5 project. For example, an investor might contribute $200,000 of the required $800,000 at the time of filing and submit documentation showing a clear plan and legal commitment to transfer the remaining $600,000.
Having a clear and identifiable path to the remaining funds needed to complete the $800,000 EB-5 investment. Partial funding is not a viable option for potential investors who hope to locate additional funding for their investment.
A clear path might include promissory notes, escrow agreements, or other legally binding documents that demonstrate the investor’s intent and ability to complete the investment. Importantly, the full amount must ultimately be invested and placed “at risk” before USCIS approves the petition or before the investor obtains conditional residency.
Benefits of Partial Funding
The primary advantage of partial funding is the ability to file the I-526 petition sooner, which secures an earlier priority date. This can be critical for investors from countries facing visa retrogression or backlogs, such as China and India, where the wait time for an EB-5 visa can be several years.
Partial funding also offers flexibility for investors who are in the process of liquidating assets, dealing with currency control regulations, or awaiting proceeds from a property sale or business transaction. It allows them to participate in a desirable project without delay, even if all funds are not yet immediately available.
Risks and Considerations
Despite its advantages, partial funding carries legal and procedural risks. USCIS may issue a Request for Evidence (RFE) if the agency is not satisfied that the investor has made a credible, irrevocable commitment to invest the full amount. The documentation must convincingly demonstrate the lawful source and path of the remaining funds and show that the full investment will be completed within a reasonable timeframe. Additionally, investors must be aware that partial funding does not reduce the EB-5 investment threshold or allow delays in job creation—USCIS still requires compliance with all program requirements, including the creation of at least 10 qualifying U.S. jobs.
Partial funding is a strategic option that provides greater flexibility for EB-5 investors, especially those dealing with temporary liquidity issues or timing challenges. When properly structured, it can allow investors to file their petitions sooner, gain an earlier place in the visa queue, and lock in access to preferred projects. However, this strategy must be approached strategically. Successful use of partial funding requires strong legal guidance, detailed documentation, and a carefully considered financial plan. Investors considering this approach should consult with an experienced EB-5 immigration attorney to ensure that all requirements are met and risks are minimized.
The above article is intended for informational purposes only and is not based upon any specific set of facts. Anyone with specific questions or issues concerning EB-5 should consult an immigration attorney.
