Question:

Because an EB-5 investment must be “at risk,” there can be no refund of the $500,000 investment if the I-829 is denied. Prospective investors must be careful of any project that markets a refund upon I-829 denial.

USCIS does not allow a refund of the $500,000 investment if an I-829 is denied. It is considered an impermissible redemption. However, if the project is under a 5 year loan agreement, once the 5 year term of the loan has been reached, you should be able to get your $500,000 returned at the expiration of the the loan term assuming there are sufficient funds to pay off the loan.

The mere fact that the I-829 gets denied CANNOT be a trigger for exiting the investment and it is ILLEGAL if anything like that is stated up-front. It constitutes an impermissible redemption agreement that negates the required "at-risk" status of the investment. Like any other investment, you could lose the money, break even, or make a tidy profit. While the usual primary concern for an EB-5 investor is obtaining LPR status for themselves and their dependents, don't forget to make sure that the investment makes good business sense as well. The most one could hope for with regard to the immigration aspect is a refund IF the I-526 is denied, such provisions are often used as a marketing tool but are NOT required and not all Regional Centers use that language in their offerings. Anything beyond that possible option at the I-526 stage is not allowed under EB-5 law.