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EB-5 investors whose chosen project fails or whose Regional Center is terminated may be able to preserve their eligibility.
For some investors who are associated with troubled EB-5 projects, this may mean investing in a “Rescue Project,” an investment opportunity specially tailored to meet the specific needs of good faith investors and EB-5 program requirements.
As Gary Merson, ALC Executive VP, explains, “In the case of good faith investors tied to failed projects or terminated regional centers, the EB-5 Reform and Integrity Act of 2022 provides important new protections to maintain eligibility. This opens the door for Regional Centers to offer tailored solutions placing immigrant investors first, so they can continue their path to permanent residence in the United States.”
Background
The EB-5 Program has been a great opportunity for tens of thousands of investors over the last 35 years, driving foreign investment and creating jobs for Americans.
Unfortunately, some investors have faced severe challenges when projects have failed or bad actors have taken advantage of them.
Since the enactment of the EB-5 Reform and Integrity Act of 2022 (the “RIA”), however, there are potential solutions. Specifically, for those investors who have invested in projects sponsored by a regional center that has been terminated, there are protections that allow them to preserve their immigration status.
Recent Notices Sent to Investors
In July and August 2025, USCIS issued Notices of Termination to immigrant investors associated with EB-5 regional centers that had been terminated by the agency.
The notices explained that the investor would need to take action to preserve their immigration status and provided three options for investors:
- The investor can notify USCIS that they have already met all the eligibility requirements regardless of the regional center’s termination and their petition should move forward and be adjudicated on the merits;
- The investor’s NCE has associated with another regional center in good standing; or
- The investor has made a qualifying investment in another NCE in good standing.
Subsection (M) of the RIA
The basis of the above notice is Subsection (M) of the RIA (8 U.S.C. § 1153(b)(5)(M)(ii)).
Subsection (M) provides that immigrant investors who are associated with a terminated regional center will have their petition denied or their status terminated or revoked unless they respond or take one of the above-referenced actions to preserve their status within 180 days of notice of the regional center’s termination.
In short, investors must take proactive steps to maintain their eligibility.
Which Option is Best?
When determining which would be the best option, investors with their attorneys should consider the status of the previously chosen project and Regional Center they invested in.
Investors in projects that have met or are likely to meet the EB-5 program requirements most likely would benefit from the first or second options above.
Investors in a project that has failed or is likely to fail to meet program requirements may want to exercise the third option, which requires investment in another New Commercial Enterprise.
Projects to the Rescue – Increased Flexibility
Rescue Projects need to meet the requirements of investors who are subject to a Notice of Termination. These projects should be investment opportunities that allow for different investment amounts, varying investment periods, and tailored exit strategies.
Some investors are at the beginning of their immigration journey, waiting for their initial Form I-526E petition to be adjudicated, while others are close to the finish line, with a pending Form I-829 petition, which upon approval provides for unconditional permanent residence.
This presents an opportunity for Regional Centers to offer investment products with more flexible terms that will allow investors to continue their immigration journeys and provide capital to projects without using any new EB-5 visas.
The key is making sure that the added flexibility does not fall short of meeting EB-5 program requirements. Potential Rescue Project investors have already suffered through one failed project — it would be terrible if they were to fail again.
Meeting EB-5 Eligibility Requirements
As with all EB-5 projects, the required investment must be made into an NCE that creates at least ten full-time jobs for qualified employees per investor. The deal also must be structured so that the investor’s capital is truly an at-risk investment, with a chance for loss or gain.
The vast majority of EB-5 projects currently available on the market require an investment of $800,000 and have set investment periods lasting several years. These terms may not be acceptable or amenable for troubled investors facing losses. Therefore, it is important to create investment products that allow for different minimum investment levels and terms depending on how far along an investor is in their immigration journey.
The precarious position many investors will be in means that Rescue Projects should be able to show job creation imminently. Regional centers may consider refinancing projects that contemplated EB-5 financing previously or providing shorter-term mezzanine loans for projects that are in the final stages of assembling their capital stacks.
For example, American Lending Center (ALC) typically provides loans that are first-position, senior loans, but Rescue Projects may refinance bridge debt or offer mezzanine loans for projects that are already under construction with job creation already in process. The result is a shorter-term, de-risked loan product specifically for troubled investors.
Minimum Investment Amounts
Subsection (M) requires investors to make a qualifying investment in another new commercial enterprise.
USCIS has provided guidance indicating that investors must only invest the minimum required capital that was in effect at the time of their initial investment. Generally, for pre-RIA investors, this means they need to invest $500,000, versus post-RIA investors who would need to meet the $800,000 minimum investment amount (as of January 2026).
Based on the wide-ranging needs of investors tied to terminated Regional Centers, a tailored solution catering to both pre- and post-RIA investors is optimal.
Lack of Policy and Procedural Guidance
It is important to note that USCIS has issued very little guidance on the requirements investors and Regional Centers must follow under subsection (M), so it is important to stay informed about the latest policy developments from USCIS and the EB-5 stakeholder community.
Key industry stakeholders, including ALC, are pushing for increased transparency and clarity to establish an even more secure pathway for investors that helps everyone navigate the system with assurance.
In all cases, investors and practitioners should review the latest USCIS policy guidance and discuss case filing strategy with counsel.
Industry Outlook
One of the most remarkable things about the EB-5 industry is the number of people who are involved not just to develop projects and make profits, but to help dedicated, resourceful investors immigrate to the U.S. and continue to grow and improve the culture and economy of this country.
As Gino Zhao, ALC’s VP of Investor Relations, explains, “providing investors with the opportunity to invest into Rescue Projects is a real game changer. The ability to continue moving forward in the EB-5 process rather than starting over is a significant market shift, making a real impact on the lives of families.”
Rescue Projects illustrate the investor protections Congress built into the EB-5 statute through the RIA, providing sufficient flexibility for the EB-5 industry to innovate solutions to protect good-faith investors and help ensure their immigration journeys do not end prematurely through no fault of their own.
Andrew Diroll-Black – Chief Compliance Officer
Andrew Diroll-Black is the Chief Compliance Officer at American Lending Center, where he oversees regulatory integrity and compliance across ALC’s EB-5 operations. With more than a decade of experience in immigration policy and regulatory oversight, he brings deep expertise in program integrity and compliance leadership.
He previously served in senior roles at U.S. Citizenship and Immigration Services (USCIS) within the Immigrant Investor Program Office (IPO), including as Branch Chief and Acting Division Chief of IPO Division 1 (Compliance), where he directed multidisciplinary teams and helped implement key integrity measures under the EB-5 Reform and Integrity Act of 2022.
About American Lending Center:
American Lending Center (ALC) is a private, non-bank lender committed to advancing US economic growth and job creation. Headquartered in Irvine, California, ALC operates 14 USCIS-designated regional centers spanning the continental United States and Hawaii. Since 2009, ALC has deployed more than $2.3 billion in financing, supporting thousands of businesses nationwide and contributing to the creation and retention of over 140,000 jobs. ALC is committed to Immigrant First Investing.
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