7) What are the likely criteria for an EB-5 application to fail?

An EB-5 application could fail because of two reasons:

  • Project-related.
  • Applicant-related.

If the project cannot create or deem to create at least the required number of jobs, USCIS could deny the I-526 petition of the applicant. At the same time, if the proof of the source of funds applicant is not satisfactory to the USCIS authorities, he could get a request for evidence, known as RFE. If he cannot produce the type of documentation USCIS is looking for in the time allotted to him, they could deny his application. Typically, applicants who fund their investments with earned income or sale of inherited property where the official sale price supports the required investment amount do not receive RFEís. Other accepted funding methods of the required investment are collateralized loans or gifted funds. In each of these latter cases, there is still a need for proof of funds. In the loan case, USCIS scrutinizes the source of funds to purchase the collateral used for the loan. In the gifted-funds case, the donor would have to prove how he earned the funds he is donating to the applicant. In summary, as long as the project can create the required number of jobs, the applicant does not have an issue with the source of funds, and the applicant has a clean personal record, his/her EB-5 application would most likely be approved.