The EB-5 Immigrant Investor Program remains one of the most reliable paths to permanent U.S. residency through investment, but investors and their advisors are navigating a shifting regulatory landscape. Recent adjudication trends from U.S. Citizenship and Immigration Services (USCIS) are reshaping how investors prepare, document, and fund their EB-5 petitions.
In a recent webinar hosted by CanAm Enterprises, Pete Calabrese, CEO of CanAm Investor Services, sat down with Jennifer Hermansky, Shareholder at Greenberg Traurig LLP and Chair of the AILA EB-5 Committee, to discuss the evolving standards for EB-5 petition adjudications. The discussion covered partial funding strategies, loan-based investments, and the use of self-directed retirement accounts for EB-5.
Their advice centered on one theme: be prepared. In today’s environment, success hinges on planning, documentation, and precision.
The Grandfathering Deadline and Why It Matters
Hermansky began by emphasizing the looming importance of the grandfathering provisions under the EB-5 Reform and Integrity Act of 2022 (RIA).
If an investor files an I-526E petition before September 30, 2026, their $800,000 investment is locked in under current law—even if Congress later changes the program or fails to reauthorize it. That filing also guarantees that investors and their family can continue through the immigration process after the program’s current authorization expires in 2027.
“This protection gives families peace of mind,” said Hermansky. “Even if Congress fails to reauthorize the program, their investment and their immigration process remain secure.”
Calabrese noted that while the deadline creates urgency, rushing to file before being fully ready is a mistake.
“You’d rather have a later priority date with a strong, approvable petition than file too early and risk a denial that costs you your place in line.”
Partial Funding and Installment Investing
One of the most talked-about trends in EB-5 today is installment funding—often called “partial funding and filing.” In these cases, investors initially remit a portion of their $800,000 investment (typically $400,000) to secure a priority date and submit their petition, then complete the investment in a second installment.
Hermansky clarified that this approach is still legally permissible under the EB-5 statute, which has long recognized investors who are “in the process of investing.” However, USCIS has recently tightened its expectations for how these cases must be documented.
To withstand scrutiny, investors must demonstrate:
- A binding commitment to complete funding by specific dates.
- A clear installment schedule included with the petition.
- Proof of the lawful source of funds for both the initial and future installments.
“It’s not enough to say you’ll fund the rest later,” Hermansky explained. “You have to show where the money will come from and document it at the time you file.”
She also warned that petitions filed without any portion of the capital investment funded to escrow are “an easy denial for USCIS.”
Proactive Documentation: Don’t Wait for the RFE
Even after the final installment has been funded, Hermansky recommended proactively sending USCIS proof of completion rather than waiting for a Request for Evidence (RFE).
Because USCIS has no formal interfiling procedure for EB-5, sending updated documentation early helps ensure it is added to the record.
“If USCIS expects investors to submit proof after funding, they should tell the public what the process is,” she said. “Until then, sending those documents early is the safest course.”
Loan Funding Under the RIA: Still Allowed, More Complex
Loans remain one of the most common sources of EB-5 capital, particularly secured loans backed by real property. Hermansky reaffirmed that loan funding is still a valid method, but investors must understand the nuances introduced by the RIA’s “good faith loan” requirements.
Key takeaways:
- Licensed banks: Investors need not document the bank’s source of funds.
- Non-bank lenders: If borrowing from a family member or a business, the lender must document their own lawful source of funds.
- Collateralized loans: The investor must show how the collateral was originally purchased.
USCIS also scrutinizes loan terms to ensure the investment is truly “at risk.” Loans with repayment dates that align too closely with a project’s maturity can trigger concerns that the funds were never really the investor’s own.
“If the loan won’t be repaid for many years, USCIS may worry the investor will never have to repay it,” Hermansky said. “These cases require careful planning and documentation.”
By contrast, short-term bridge loans used to liquidate assets are still widely accepted.
Using Self-Directed IRAs for EB-5 Investments
Another topic gaining traction is the use of Self-Directed IRAs (SDIRAs) to fund EB-5 investments—especially among investors already in the U.S. on H-1B or F-1 status with significant retirement savings.
Hermansky confirmed that this method can work if structured properly. The key is that the IRA’s custodian is not making the investment decision; the investor remains in control. As long as the investment is for the benefit of the account holder and the custodian’s role is limited to compliance oversight, the structure should be acceptable.
“The investor still selects and controls the investment,” she explained. “The custodian is not managing it, so the EB-5 requirements remain met.”
CanAm projects that choose to accommodate SDIRA investors must also be prepared on their end—with subscription agreements and tax reporting structured to handle custodian-held accounts.
The Common Theme: Preparation and Precision
Both experts concluded with a shared message: today’s EB-5 environment demands meticulous preparation. USCIS has recently expanded its discretion to deny petitions outright without issuing Requests for Evidence or Notices of Intent to Deny. That means investors may get no second chance to fix an incomplete submission.
“Take the time now to put together a very strong case,” Hermansky urged. “Wait the extra month if you need to translate or gather documents. It’s much easier to prepare now than to fight a denial later.”
Calabrese summed it up simply: “None of this matters if you end up with a denial. Measure twice, cut once, and file only when you’re truly ready.”
Final Takeaway
The EB-5 program remains a powerful tool for global investors seeking U.S. residency, but today’s standards require a higher level of care and professional support. As the September 2026 grandfathering deadline approaches, working with an experienced regional center and a qualified immigration attorney is essential to protect both your investment and your immigration goals.
In EB-5, timing matters —but preparation matters more.
