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Questions & Answers

Can EB-5 immigrant investors be guaranteed a return on their investment?

Is there a guaranteed return or interest rate that EB-5 investors will get on their investment? What happens if there is a guarantee and the investment is lost?

Answers

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    Mahsa Aliaskari

    Immigration Attorney
    Answered on

    The invested funds must be at risk and there cannot be a redemption agreement that guarantees a return of funds. In the Regional Center context most projects will have an exit strategy in place, but even in those situations there should not be a guarantee of return of funds.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    No you cannot guarantee a return as the money has to be at risk. If the investment fails before the two year mark your greencard will be revoked.

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    Lei Jiang

    Immigration Attorney
    Answered on

    No. EB-5 investment is no different from other investments. The law also requires that such investment involves risk.

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    Marisa Casablanca

    Immigration Attorney
    Answered on

    The regulations require that the investment be "at risk". Therefore, the documentation or conditions for the EB5 investment must not guarantee a return. However, third party assurances, such as an insurance company policy is acceptable. We are available if you have any further questions.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    EB-5 regulations require the investment funds must be at risk like any other regular investment. If there is a guaranteed return of funds to an EB-5 investor, it is unlikely an investor''s I-526 petition will be approved by USCIS. Regional Center projects may offer a return on investment (which is generally insignificant) but are not required to do so. Once an EB-5 investor''s I-829 petition on removal of conditions is approved, he or she may generally exit the investment upon approval of General Partner or other governing body and recoup the invested funds at its fair market value. You should engage in due diligence efforts and carefully review a Regional Center project''s offering documents before investing to ensure the investment in a particular project will work for you. Do not hesitate to contact our office, should you have further questions.

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    Clem Turner

    Securities Attorney
    Answered on

    Your EB-5 Investment must be at risk, thus the Company is prohibited from taking efforts to guarantee your return on investment.

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    Ying Lu

    Immigration Attorney
    Answered on

    All the EB-5 funds must be ''at risk''. Therefore, guaranteed return is not allowed.

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    Karen Weinstock

    Immigration Attorney
    Answered on

    No, a guaranteed return does not work for EB-5 purposes and there is risk involved. You need to do your due diligence and make sure this is an investment that works for you.

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    Roberto Ortiz

    Immigration Attorney
    Answered on

    The EB-5 investor must have his or her investment at risk. The law does not permit a guarantee of a return of the investment. If you have any other questions, please do not hesitate to contact me. Thank you.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    No, unfortunately not. One of the requirements to be considered for the EB-5 Immigrant Visa category is that the invested funds be ''at risk.''

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    Jeffrey E Campion

    Immigration Attorney
    Answered on

    There cannot be a guarantee. If there is, then it is view as "not at risk" and therefore not an investment.

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    Stephen Berman

    Immigration Attorney
    Answered on

    If there is no risk at all, one must doubt if it is a real investment.

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    Sufen Hilf

    Immigration Attorney
    Answered on

    There cannot be a guarantee on EB05 investment since the investment has to be at risk to get your green card petition approved.

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    Ed Beshara

    Immigration Attorney
    Answered on

    The EB-5 foreign national will invest in and become an equity owner of a Fund LLC or limited partnership. The fund LLC will loan the funds to the job creating enterprise (jce). The jce can guarantee the repayment of the loan by using assets ( eg land and buildings ) as collateral.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    No guarantees. The law requires the capital to be at risk, and case law forbids ?guaranteed? redemption agreements (certain price and a certain time). That?s not really an investment; it?s more like a loan.

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    No guarantees or redemption agreements to investors are allowed under the EB-5 regulations as this contravenes the ''at risk'' requirement of the capital.

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    Gregory Romanovsky

    Immigration Attorney
    Answered on

    Thank you for your inquiry. No guarantees are possible with EB-5 investments. It is precisely for this risk that you''re getting your permanent resident status.

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    Daniel P Hanlon

    Immigration Attorney
    Answered on

    No. EB-5 investment funds must be considered "at risk." If there is a guarantee on the investment, the petition will be denied.

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    Steven Anapoell

    Securities Attorney
    Answered on

    No, they cannot be guaranteed a return on their investment.

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    Philip H Teplen

    Immigration Attorney
    Answered on

    There is no statutory return on investment. In fact, the law says that there must be business risk. There are people that lose their investment. It is critical to work with an experienced law firm to do proper due diligence on every investment.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    No, because the EB-5 investment must be fully ''at risk,'' any language that speaks of guaranteed income will be viewed by USCIS as not all your investment was placed fully at risk. Normally, a nominal interest income of 1-3% will not pose much problem, but beware of any development that guarantees significant return on your investment - something that is too good to be true usually is.

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    Margo Chernysheva

    Immigration Attorney
    Answered on

    No, EB-5 immigrant investors cannot be guaranteed a return on their investment.

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    Neville M Leslie

    Immigration Attorney
    Answered on

    No guarantees.

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    David Hirson

    Immigration Attorney
    Answered on

    The law does not permit guarantees based on the assets of the commercial enterprise. The investment has to be "at-risk". If the investment fails before the conditional status of the investors permanent residence (green card) has been removed, then the investor will not get the green card.

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    Anthony Korda

    Immigration Attorney
    Answered on

    EB-5 Regulations require that EB-5 investments must be ''at risk.'' This means that there can be no guarantee of return. Although many projects will quote a rate of return, income is dependent on the success of the project. It is important to choose the right project and investors should carefully scrutinize the business plan of any project prior to investing in exactly the same way that any prudent investor would consider a potential investment opportunity.

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    Boyd Campbell

    Immigration Attorney
    Answered on

    EB-5 investors cannot be guaranteed a return on their investment, but they may receive a return if one is made available by the EB-5 project developers. Generally, we do not want to see a return during the two-year conditional residence period. USCIS considers any return during that two-year period to be a return of the original $500,000 capital investment. This is an absurd position to take, of course, but there it is.

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    Kate Kalmykov

    Immigration Attorney
    Answered on

    The EB-5 program requires that the investor’s funds be “at risk.” This means that if the EB-5 petition is approved, the regional center may not guarantee to return the funds. Investors whose conditional removal applications are approved may exit the investment at the discretion of the General Partner or Managing member and can only expect to recoup the fair market value of their invested funds.

    The EB-5 program does not require regional centers or individual EB-5 businesses to offer a certain rate of return on the investment. While the EB-5 investment funds must remain at risk to satisfy the regulatory criteria, some regional centers do offer investors a rate of return on their investment. These rates are typically listed in the Securities Offering Documents of the regional center’s project.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    A guarantee guarantees denial.

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