The Benefits of Partial EB-5 Investments

December 16, 2024 — 2 min read

Not every investor can immediately meet the $800,000 capital requirements in full, leading to interest in partial investments. This approach allows investors to contribute their funds incrementally rather than all at once. Partial investments offer increased flexibility and advantages for investors, but they are not without risk.

Notably, partial investments provide an option for investors to begin the EB-5 process without the immediate need for the full investment amount. This is particularly appealing for those who are liquidating assets, securing financing, facing child age out issues, or for those investors impacted by currency restrictions or transfer limits imposed by their home countries such as China or India.

Far and away the greatest advantage, particularly for investors facing retrogression, by initiating their investment, individuals can begin the EB-5 application process, which includes submitting the I-526E petition. This may allow them to secure an earlier priority date, a critical factor given the limited number of visas available annually.

Not all regional centers accept partial investments. Therefore, it is prudent for investors to initiate these conversations up front. Additionally, the RIA requires an investor’s funds to be sustained in the project for 2 years. However, the clock does not start until an investor’s funds have been fully committed to the project and spent which could increase the risk of redeployment.

We recommend investors consult with experienced EB-5 immigration counsel before pursuing partial investments to fully understand the potential risks and benefits. Immigration attorneys can provide personalized guidance based on the investor’s financial situation, project requirements, and evolving USCIS policies.

A general recommendation is to provide the remaining balance of the required funds within 90 to 120 days of the initial investment. This timeline helps mitigate risks of noncompliance and avoids unnecessary delays in the adjudication process. It also ensures that the funds can be deployed to the project and spent for job creation and to meet the sustainment threshold. With proper planning and by adhering to the 90-120 day funding timeline, investors can navigate this pathway effectively and enhance their chances of success in the EB-5 program.