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An EB-5 petition is the first formal step for foreign investors seeking permanent residency in the United States through the EB-5 Immigrant Investor Program. Administered by the U.S. Citizenship and Immigration Services (USCIS), the EB-5 program allows eligible investors and their immediate family members (spouse and children under 21) to obtain Green Cards in exchange for making a qualifying investment that leads to job creation in the U.S.

There are two types of qualifying investment routes:

• Direct Investment: The investor establishes or funds a new commercial enterprise and actively manages the business. This route requires the investor to invest their own capital directly and prohibits pooling of funds.

• Regional Center Investment: The investor invests through a USCIS-designated regional center in a government-approved project. Regional centers are economic units that facilitate large-scale development projects, such as hotels or residential complexes, and allow investors to take on a more passive role while still meeting the EB-5 job creation requirement. Most EB-5 applicants choose this route for its flexibility and convenience. 

In both routes, the minimum investment amount is $800,000 if the project is located in a Targeted Employment Area (TEA)—a high-unemployment area—or $1,050,000 in all other areas. The investment must create at least 10 full-time jobs for qualified U.S. workers.

Prior to the passage of the EB-5 Reform and Integrity Act (RIA) in March 2022, the same form was used for standalone and regional center investors. However, the positive reforms implemented to the EB-5 program by the RIA also introduced a change in the required forms to be filed by EB-5 investors. To begin the process, investors must submit either Form I-526 (for direct investors) or Form I-526E (for regional center investors). Form I-526 and I-526E petitions require detailed information and documentation about the investor’s background, lawful source and path of funds, and project or business plan. Form I-526 is 18 pages long with 9 sections, and Form I-526E is 16 pages with 12 sections. Both forms permit inclusion of a spouse and unmarried children under 21. These forms must be accompanied by substantial documentation, including a comprehensive source of funds report.

EB-5 Source of Funds Requirement

One of the most critical components of the EB-5 petition is proving that the investment capital was obtained lawfully. USCIS requires detailed records tracing the origin, transfer, and accumulation of the investment funds. Common acceptable sources include:

• Salary and employment earnings
• Dividend distribution
• Sale of property
• Gifts (with proof that the gift giver also obtained funds lawfully)
• Loans

Bank records, tax returns, property sale contracts, and employment documentation are commonly submitted as part of this requirement. Failure to sufficiently document the source and path of funds is one of the leading reasons for EB-5 petition denials, which is why working with experienced immigration attorneys and advisors is highly recommended.

The EB-5 petition is the cornerstone of the EB-5 process and demands strategic preparation, legal expertise, and strong documentation. With over a decade of experience, our team at The American Legal Center is here to help you navigate every aspect of this journey. Contact us today for more information.