Common EB-5 Private Placement Risk Factors

Given the extensive risks and speculative nature of private placements generally, and EB-5 investments specifically, any person considering participation in a private placement with an EB-5 immigration component should carefully consider and understand common risk factors that may be experienced.

This summary is not exhaustive. Specific risk factors for a particular private placement will be stated in the applicable private placement memorandum and other offering documents.

Common Financial Risk Factors

Any prospective investor should understand that:

• they may lose their entire investment, including other costs and fees paid;
• investment capital is not guaranteed nor does it have rights of redemption;
• investment returns are not guaranteed;
• the investment is not transferrable or has limited transferability;
• the investment is in an illiquid security;
• the investment is generally in a new business enterprise with limited or no operating history;
• the investment may be subordinate to other financing arrangements;
• the investment might not be secured against an asset or may have only limited security;
• investments might not be repaid on time or at all.

Please consult your financial advisor for guidance on your investment and the risk factors associated with your own specific circumstances.

Common Immigration Risk Factors

A prospective investor should understand that:

• they may be denied a visa if they provide false or misleading information to United States Citizenship and Immigration Services (USCIS) or the U.S. Department of State;
• they may be denied a visa if they have certain political affiliations;
• they may be denied a visa if they have committed a crime of moral turpitude or other crimes;
• they may not receive a visa if insufficient jobs are created;
• they may not receive a permanent visa if their investment is not sustained;
• they may not receive a permanent visa if a material change to the business plan occurs;
• a derivative child family member may “age out” and become ineligible for a visa under their investor parent’s application;
• USCIS might revoke the designation of a regional center, potentially causing investors to lose immigration benefit;
• USCIS may revise or update existing policy in a way that adversely impacts a pending or previously submitted petition;
• Congress may substantially change immigration laws and apply those changes retroactively; and
• Congress may cancel or allow the EB-5 regional center program to lapse.

Please consult your immigration attorney for guidance on your immigration pursuit and the risk factors associated with your own specific circumstances.

Past Performance Risks

Past performance should not be relied on as a predictor of future results. 

Forward-Looking Statement Risks

Forward-looking statements are based on information available on the date of publication. Such statements may contain errors or omissions and are subject to change without advance notice.