How to evaluate an EB-5 project before you invest

Why project due diligence is your job

An EB-5 regional center investment is two things at once: an immigration filing and a private securities purchase. USCIS approval of a regional center or a project application means the paperwork met program rules. It is not an endorsement of the investment, a judgment that it will succeed, or a promise that your money is safe. The SEC and USCIS have both warned that bad actors use the EB-5 program to sell fraudulent or unsuitable offerings.

Because the money must be at risk, you can lose some or all of it. And because your green card depends on the project spending the money as promised and creating the required jobs, a project's problems can become your immigration problems years later at the Form I-829 stage. This guide gives you a framework for asking the right questions about the project; proving your own money is covered in our EB-5 source of funds guide. USVISA.com does not evaluate, rank or recommend projects or regional centers. For financial and legal review, work with independent professionals you hire and pay yourself.

Read the offering documents in full

A legitimate offering is usually built around a private placement memorandum (PPM) or offering memorandum, a subscription agreement, the partnership or operating agreement of the new commercial enterprise (NCE), the loan or equity agreement between the NCE and the job-creating entity (JCE), an escrow agreement, a business plan and an economic impact report. Ask for all of them before committing. If the sponsor will not provide them, or the documents conflict with the marketing materials, treat that as a serious warning.

Pay special attention to the risk factors section, conflicts of interest, the use of proceeds table, the exit strategy, and what happens if the project needs more money, is delayed, or the regional center loses its designation.

Understand the capital stack

The capital stack shows every source of money in the project and who gets repaid first. EB-5 money is often structured as a loan from the NCE to the developer or as preferred equity. Questions to ask:

• How much senior construction debt sits ahead of the EB-5 capital, and on what terms?
• How much of the developer's own cash equity is in the deal, and when was it contributed?
• Is the EB-5 loan secured by real collateral (such as a mortgage or pledge), and in what position?
• Are other funding sources committed in writing, or still being sought?
• What percentage of the total project cost is EB-5 money? Heavy reliance on EB-5 capital can mean slower funding and more risk.

Check the job creation methodology

Each investor needs 10 qualifying jobs. Regional center projects usually rely on an economic model (such as RIMS II or IMPLAN) applied to project spending. Under the EB-5 Reform and Integrity Act of 2022 (RIA), up to 90% of jobs may be estimated indirect jobs, at least 10% must be direct jobs, and jobs from construction lasting under two years may make up no more than 75% of the requirement.

• Is there a job "cushion"? Compare total projected jobs with jobs needed for all investors in the offering.
• Which spending categories drive the jobs (construction, operations, tenant revenue)? Are those categories already spent or still speculative?
• Does the job count depend on EB-5 funds specifically, or on total project spending?
• Has the project's I-956F been filed or approved, and has the economist's report been reviewed by USCIS?

Escrow and release conditions

Many offerings hold investor funds in escrow until a milestone, such as approval of the project's Form I-956F or the investor's I-526E. Read who controls the escrow, what triggers release, and what happens to your money if your petition is denied. A third-party bank escrow agent with clear written terms gives more protection than an account controlled by the sponsor. Note that USCIS rules require the investment to be genuinely at risk; an escrow that simply guarantees a refund in every circumstance can create its own eligibility problems, so have your attorney review the terms.

Redeployment and the exit

Developers often repay EB-5 loans before investors are ready to leave the program, especially when visa waits are long. When that happens the NCE may need to reinvest (redeploy) the capital to keep it "at risk." The RIA directs DHS to write rules for redeployment, and a July 2026 proposed rule would limit redeployment to regional center investors. Ask:

• When is the EB-5 loan expected to be repaid, and how does that compare to my expected visa wait?
• Where and how would funds be redeployed, and who decides?
• What fees apply on redeployment, and what are the risks of the redeployed investment?
• When and how do investors receive their capital back, and is that tied to the I-829 decision?

Fees and who gets paid

Beyond the investment amount, investors usually pay an administrative or syndication fee to the sponsor, plus government fees (as of November 30, 2026, $7,850 for Form I-526E plus a $1,100 Integrity Fund fee; see our EB-5 guide). Ask for every fee in writing, including:

• Administrative fees and what they cover.
• Commissions to migration agents, brokers or "finders," and whether they come from your fee or from the project.
• Interest rate spread between what the developer pays and what investors receive.
• Any payments to the lawyer you are using. Your immigration lawyer should represent you, not the offering.

Since the RIA, direct and third-party promoters, including migration agents, must register with USCIS (Form I-956K), and regional centers must follow disclosure and compliance rules. Being registered is not an endorsement.

How to check regional center compliance

• Designation status: Confirm the regional center is on USCIS's approved list and check the USCIS regional center terminations page.
• Annual filings: Regional centers must file an annual statement (Form I-956G) and pay an annual Integrity Fund fee. Ask whether filings and payments are current.
• Bona fides: People involved with a regional center must meet the RIA's "bona fides" requirements, which bar certain persons with fraud or criminal histories.
• Audits and site visits: The RIA authorizes USCIS audits and site visits. Ask about any past findings.
• Program sunset: The regional center program is authorized through September 30, 2027. Ask what the offering documents say about a lapse in authorization.

EB-5 project red flags

A due diligence process

Questions to ask the sponsor

• What is the I-956F status, and has USCIS approved any I-526E or I-829 petitions for this project?
• How many jobs are projected, how many are needed, and what is the cushion?
• What happens to my investment and immigration case if the project is delayed, over budget, or the regional center is terminated?
• How is my capital secured, and what is the developer's own equity contribution?
• Who are the promoters, how are they paid, and are they registered with USCIS?
• What is the exit plan and when do you expect to return capital?

Where to check and report

You can look up registration and disciplinary history through the SEC and FINRA, and report suspected EB-5 fraud to USCIS and the SEC. Our scam prevention guide covers other common immigration frauds. If you are still deciding whether EB-5 is right for you, compare EB-5, E-2 and L-1.