Can the EB-5 Visa Be Rejected? Top Reasons for Denial & How to Avoid Them

The EB-5 program requires citizens to make significant financial and life-altering commitments with major consequences. Many applicants primarily from India alongside other high-demand countries fear that EB-5 visa USA applications may face rejection.

A denial can mean:

1. Lost investment funds (if the project fails or USCIS denies the petition.
2. Wasted time (delaying U.S. immigration plans by years).
   Missed opportunities (if children age out or visa policies change).
3. The good news? Most EB-5 rejections are avoidable if you understand the risks and take the right precautions.

Top Reasons for EB-5 Visa Rejection & How to Avoid Them

1. Insufficient or Unlawful Source of Funds

Reasons for denial: The investments eligible for the EB-5 Immigrant Investor Program require either an investment of $800,000 in a Targeted Employment Area (TEA) or an investment of $1,050,000 in a non-TEA. And very importantly, these funds must come from a lawful, traceable source.

How to Avoid It:

1. To give it all the details, bring along financial records like tax returns, bank statements sales deeds:
2. If you’re borrowing or gifting, provide evidence. In this case, you would need a gift deed and a loan agreement.

Hire a seasoned EB-5 attorney to set your funds right.

2. Opting for a Risky or Non-Compliant EB-5 Project

Reasons for denial: If the Regional Center or the direct EB-5 project is in non-compliance with the USCIS criteria such as job creation or financial viability, you can have your petition declined-even if your funds are from legitimate sources.

How to Avoid It:

1. Invest into USCIS approved Regional Centers with strong track records.
2. Confirm the project’s business plan, economics, and job creation potential.
3. Avoid projects with a history of fraudulent claims or pending suits.

Opting for a Risky or Non-Compliant EB-5 Project

3. Failure to Show Investment is “At Risk”

Reasons for denial: The EB-5 states that your capital must be truly at risk; there will be no guarantees for returns or buybacks. It is sufficient for USCIS to reject the petition, considering that the investment appears “safe.”

How to Avoid It:

1. Make sure the PPM (Private Placement Memorandum) specifies the investment is at risk.
2. Avoid projects that offer fixed returns or refund guarantees – a red flag for USCIS.

4. Incomplete or Incorrect Documentation

Reasons for denial: Missing forms, unsigned documents, or errors in the I-526E petition may lead to a Request for Evidence (RFE) or outright denial.

How to Avoid It:

1. Double-check for accuracy of all forms.
2. Submit certified translations of all non-English documents.
3. Work with an EB-5 specialist lawyer to review filings.

5. Changes in Personal Circumstances (Aging Out, Marital Status)

Reasons for denial: If a child turns 21 before the approval of his or her visa, he or she may “age out” of eligibility. Divorce or new dependents can complicate things as well.

How to Avoid It:

1. File as early as possible to lock in a child’s age under the CSPA.
2. Notify USCIS about the changes in marital/family status immediately.

6. Past Immigration Violations (Overstays, Fraud, and Misrepresentation)

Reasons for denial: Past visa overstays, false claims, or criminal histories can be grounds for rejection.

How to Avoid It:

1. Discuss with your lawyer any past visa issues.
2. If there are past complications, see if waivers or other legal remedies are appropriate before applying.

Key Takeaways: How to Minimize EB-5 Rejection Risks

1. Engage qualified legal counsel at the start – An experienced EB-5 attorney can identify possible issues even before filing.
2. Ensure due diligence is rigorous – Research projects extensively before investing.
3. Organize recordkeeping – Make sure that all records related to finances are organized and retrievable.
4. Make timely and accurate filings – Avoid late submissions with their attendant risk of errors.
5. Track the processing time – Keep an eye on processing trends at USCIS so that realistic expectations may be set.

Each year, thousands of investors succeed in EB-5 by properly following EB-5 guidelines even though risks exist. Recognition of proper preparation alongside expert guidance becomes the essential factor for success.

Need Help Avoiding EB-5 Rejection?

Here at Abhinav Immigration Services, our EB-5 specialists have assisted numerous investors successfully through the process. Services we offer include:

1. Explore low-risk projects through project due diligence.
2. Documentation preparation to qualify for USCIS norms.
3. Case strategy for avoiding common pitfalls.

For a free consultation, contact us today and step into the first stage of EB 5 visa India and USA approval.

FAQ’s

Q1: What percentage of EB-5 visas get rejected?

Approval rates vary from year to year, but generally speaking, there is around an 80-90% approval rating for properly prepared applications with legitimate projects. Most denials are based on documentation or sourcing issues that could have been avoided.

 Q2: Will I have to reapply for the EB-5 after the denial?

Yes, if you handle the reason for denial, many have successfully reapplied with proper documentation or chosen another project.