Is My EB5 Project Investment "At Risk"?
Are you unsure about whether or not an EB5 project is an at risk project? One of the main requirements of the EB5 Immigrant Investor Program is that the EB5 applicant's investment in a new commercial enterprise be a risky venture.
What do you need to know before you commit to a project. Will you receive a guarantee that the money you invested in your EB5 project will be returned to you?
When you're doing your due diligence into your EB5 project you'll want to pay close attention to how the proposal is worded. (Seeking an experienced immigration attorney can help walk you through the legalese of the documents.)
You should look to make sure the EB5 project proposal you're interested in does not have a redemption agreement or impermissible debt arrangement. The documents cannot state anywhere in them that you will receive a repayment or return on your investment.
Basically, if the EB5 project states in their documents that they will guarantee a full or partial return on your investment or they guarantee a rate of return on a portion of your investment then the investment is no longer an "at risk" investment and the USCIS will deny your application and petition because they consider it "redemption."
Your investment must be "at risk", meaning there are no guarantees that you will make any return on your investment. It doesn't matter if the business is a success or failure, there is no guaranteed that you'll receive a repayment of your investment.
Making a risky investment is a major part of the EB5 program, but with the assistance of immigration attorneys and financial or investment advisors, they can conduct the due diligence needed to minimize the risk.
The EB5 program may not be for everyone due to the risk involved, but the quick path to a green card, the fact that it benefits the EB5 holder's entire family, and the unrestricted rules governing travel, residency, and education in the U.S., still makes this program highly desirable for foreign investors.