You’ve invested $900,000 in an EB5 project. You’ve waited 18 months for processing. Then you get the letter from USCIS – Denied.
Your heart sinks. Your plans freeze. Your American dream feels shattered.
The reality? Green card denials happen more often than you think. Nearly 40% of EB5 applicants face this challenge. That’s 4 out of 10 investors – many with complete, accurate applications. Sometimes denials strike even the most prepared investors. Market shifts, project changes, evolving USCIS standards – these factors can affect any application.
But a USCIS denial letter isn’t the end of your American dream. Successful EB5 investors know that it’s what you do after a green card denial that matters most. Your response strategy can turn that denial into an approval. And this guide walks you through everything you need to know about EB5 green card denials. You’ll learn what causes them, how to handle them, and most importantly – how to avoid them.
What Happens if Green Card Is Denied for EB5 Investors?
Your green card denial affects your immigration status right away. You have 30 days to file an appeal or a motion to reopen/reconsider with USCIS. The good news is, your EB5 investment remains secure during this process.
There are three main paths forward after a green card denial.
- You can file an appeal with the Administrative Appeals Office (AAO).
- You can submit a motion to reopen your case with new evidence.
- Or request USCIS to reconsider their decision based on existing evidence.
Note: Each option has specific deadlines and requirements.
Many investors worry about staying in the US after a denial. In that case, your current visa status determines your options.
Some investors switch to other visa categories like E-2 or L-1 while they work through the appeal. Others return to their home country and continue the process from there.
A green card denial doesn’t permanently block you from getting an EB5 visa. Many investors succeed on their second try with stronger applications.
Common Reasons for Green Card Denial Explained
There are several key reasons for green card denials in EB5 cases. Let’s look at the most common issues that cause USCIS to deny applications and how you can avoid them.
Source of Funds Documentation Issues
USCIS requires you to prove every dollar of your EB5 investment came from legal sources. Many green card denials happen when investors can’t trace their money path clearly. A common mistake is showing bank statements without explaining how the money got there. You need documents for every step – from earning the money to transferring it to your project.
- Tax returns from the past 5 years
- Business ownership papers
- Property sale documents
- And gift tax records
All of these must connect perfectly. Missing even one link in this money trail can trigger a denial.
Pro tip: Create a detailed funds flow chart before filing. Map out every movement of your investment money and gather supporting documents for each step.
Project Compliance Problems
Your chosen EB5 project must stay compliant with USCIS rules throughout your immigration process. Projects sometimes fail to maintain their business plans, change their scope without approval, or misuse investor funds.
These changes can doom your EB5 application. Because USCIS looks closely at how projects handle construction timelines, preserve jobs, and spend EB5 capital. A project’s failure to file required updates or respond to USCIS requests affects all its investors.
Pro tip: Research your project’s compliance history before investing. Ask for copies of their past USCIS filings and regulatory audit results.
Job Creation Requirements Not Met
Each EB5 investor must create 10 full-time jobs for U.S. workers. Many denials happen when projects fall short of job creation targets. Construction jobs only count if the construction lasts 2+ years.
Jobs must be proven through payroll records, tax documents, and economic impact reports. USCIS often questions job calculation methods or rejects positions that seem temporary. Regional center projects must prove their economic models accurately predict indirect job creation.
Pro tip: Pick projects that plan to create more than the minimum 10 jobs per investor. This gives you a safety buffer if some jobs don’t materialize.
Security and Background Check Issues
USCIS conducts thorough background checks on all EB5 investors. Criminal records, security concerns, or immigration violations can cause denials. Some investors face problems from past visa overstays or unauthorized employment.
Others run into issues with military service records or political affiliations in their home countries. Even minor legal problems from years ago can raise red flags if not properly explained.
Pro tip: Disclose everything in your application (yes, even small issues). USCIS views hiding information as WORSE than the original problem.
Incomplete or Incorrect Application Materials
Many denials stem from simple filing mistakes and missing documents. USCIS demands original copies of:
- Birth certificates
- Marriage licenses
- And passport pages.
Forms must be filled out perfectly. Pay close attention to the dates or names because errors in these can cause problems. Some investors forget to translate foreign documents or get proper certifications. Also, medical exam results expire if you don’t file in time.
Pro tip: Have multiple people review your application package before filing. Use a detailed checklist to track every required document and form.
Failure to Maintain Investment Throughout the Process
USCIS requires your EB5 investment to stay “at risk” until you get permanent residency. Some investors try to protect their money by adding loan-like guarantee terms to their agreements.
Others withdraw some capital when their projects start making money. USCIS views these actions as breaking the “at risk” rule. Projects that return capital to investors too early also trigger denials. Your investment must stay active and at risk even during processing delays.
Pro tip: Review your investment agreements carefully for any terms that might look like capital guarantees to USCIS.
Material Changes in Business Plan
Business plans must stay basically the same from I-526 approval through I-829 filing. Projects sometimes make big changes like:
- Switching locations
- Changing industries
- Or restructuring ownership.
But be careful. USCIS may deny your green card if your project differs too much from its original plan. Market conditions forcing project changes must be very well documented.
Pro tip: Choose projects with clear, realistic business plans. Ask how they handle unexpected changes while protecting investor immigration status.
How To Interpret the USCIS Denial Letter
USCIS denial letters typically follow a standard format. Let’s break them down to help you understand:
- The first page shows your basic information – name, case number, and filing date. Pay close attention to the date USCIS issued the denial because this date starts your 33-day window to file an appeal.
- The USCIS denial letter’s main body explains why they denied your case. Look for specific sections marked “Discussion” or “Analysis.” These parts detail which EB5 requirements you didn’t meet.
Note: USCIS will quote the exact laws and regulations they used to make their decision. They’ll point out which documents failed to prove your case.
- The USCIS denial letter includes special codes that matter for your next steps. “IMM” codes relate to immigration law issues. “AFM” refers to their adjudicator’s manual. These codes help your advisors understand exactly where your case went wrong.
- USCIS explains which evidence they found insufficient. They might say your bank statements didn’t prove your money source. Maybe your project’s job creation numbers didn’t add up. The letter states exactly what documents or proof they wanted but didn’t get.
- The final section tells you what to do next. It lists your appeal rights and deadlines. You’ll see instructions for filing Form I-290B. The letter explains different appeal options like AAO appeals, motions to reopen, or motions to reconsider. Each option has different requirements.
Read the entire letter carefully before deciding your next move. The details in each section guide your appeal strategy. Also, keep this letter safe – you’ll need it for any future immigration applications.
Can Green Card Renewal Be Denied After an Initial Denial?
Yes, USCIS can deny your green card renewal even after you get approved on a second try. The renewal process checks if you maintained all EB5 requirements during your conditional residency period.
Common renewal denials happen when investors pull their money out too early. USCIS expects your investment to stay at risk until you get your permanent residency. Taking money back during your conditional residency will trigger a denial.
Your renewal also depends heavily on your project’s performance. USCIS checks if your project created and maintained the required 10 jobs. They look for proof the project followed its business plan. Any major changes need strong explanations with supporting evidence.
How To Prevent Renewal Denials
Here are the best practices to follow if you want to prevent renewal denials:
- Keep detailed records of your investment.
- Document every project update.
- Stay involved with your project’s progress.
- Follow all conditional residency rules.
- Work with your regional center to prepare renewal evidence early.
Don’t Let Green Card Denials Stop Your American Dream
Many denials come from simple oversights that proper planning could avoid. But sometimes denials happen even with perfect applications. So remember that a denial notice doesn’t mean your EB5 journey is over. Focus on understanding the exact reasons for denial. Build a strong response strategy and handle appeals professionally.
At Austin EB5, we specialize in structuring investment projects that meet strict USCIS requirements. We understand the common pitfalls that lead to denials. So our team can help you connect with EB5-qualified investment options to build a strong foundation for your application.
Ready to learn how our projects can support your immigration goals? Schedule a consultation with our investment experts today.
Green Card Denial FAQs
What should I do if my green card application is denied?
If your EB5 application is denied, you should first carefully review the USCIS denial letter for specific reasons. Depending on the situation, you may be able to appeal the denial or file a motion to reopen or reconsider the case.
Can I appeal if my application for a green card is denied?
Yes, you can appeal the denial of your EB5 petition. The appeal process involves filing a notice of appeal with the Board of Immigration Appeals (BIA) or the appropriate office of Citizenship and Immigration Services, depending on the nature of the denial.
What are the common reasons for a green card application being denied?
Common reasons for denial include failure to meet eligibility requirements, incomplete documentation, or issues related to criminal history. It’s important to understand the specific reason listed in your USCIS denial letter.
How can an immigration attorney help if my EB5 application is denied?
An experienced immigration attorney can help you understand the denial reasons, guide you through the appeal process, or assist you in reapplying by ensuring that your new application meets all eligibility requirements.
What is the role of USCIS in the EB5 application process?
The U.S. Citizenship and Immigration Services (USCIS) is responsible for processing EB5 applications, including reviewing petitions, conducting interviews, and making final decisions on whether to grant or deny lawful permanent residency.
What happens if I do not appeal or reapply after my application is denied?
If you do not appeal or reapply after your EB5 petition is denied, you may face deportation or removal proceedings, especially if your status in the U.S. is no longer lawful. You could receive a notice to appear in immigration court.
Can I apply for citizenship if my green card application is denied?
If your EB5 application was denied, you cannot apply for citizenship until you are granted lawful permanent residence. You must resolve the denial issues before pursuing citizenship.
