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Risks of Investing in EB-5 Projects

There are two main risks involved with investing in EB-5 Visa Regional Center Projects:

1. The I-829 will be denied.  There are several reasons for this:
a. Capital was not fully invested

b. Material changes were made in the course of the investment which were not consistent with the job plan as submitted in the I-526 application

c. Jobs were not created as outlined in the economic impact analysis or within the period of time outlined in the business plan

d. Insufficient job creation (either Direct, Indirect or Induced)

e. Jobs created were outside of a Targeted Employment Area as defined in the economic impact analysis

2. Capital invested is not returned, either in part or in full.  There are even more reasons that this will not occur, but basically they come down to:

a. Commercial entity never comes into existence (Bankruptcy)

b. Commercial entity does not fully become operational

c. Realized asset has a much lower market value than principal invested

d. Insufficient revenue and inability to refinance mean low capital reserves with which to repay investors fully