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How many EB-5 applicants lose their principal investment?

I want to invest in a secure regional center project for the EB-5 visa. Beyond doing due diligence, what other type of insurance can I get on my $500,000 EB-5 investment? How often is the EB-5 principal investment not returned?

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    Julia Roussinova

    Immigration Attorney
    Answered on

    As part of your due diligence process, inquire with a particular project within an approved regional center what its track record is on return of capital in projects throughout the years. Most well-established regional centers in the United States will have an excellent track record not only on approvals of I-526 and I-829 petitions, but also on return of capital to EB-5 investors.

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    John J Downey

    Immigration Attorney
    Answered on

    Some companies offer insurance on EB-5 projects. You will need to contact them for particulars. I know of no source of information on how often the principal investment is not returned.

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    Ed Beshara

    Immigration Attorney
    Answered on

    There is immigration due diligence by the immigration law firm as to the granting of U.S. permanent residency. There is a separate business and investment due diligence as to the financial viability of the EB-5 project and the likelihood of the project satisfying the exit strategy and money coming back to the investor. Please remember, after you obtain conditional permanent residency, your personal investment has to be at 100 percent risk, and this policy can still work in conjunction with an approvable exit strategy.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    You need to carefully confirm the track record of the regional center in returning capital. Some have a better track record. Capital preservation is the key aspect, so check the collateral.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    There are cases where the EB-5 project fails to make a return on the investment, but those are rare, and often EB-5 regional centers have alternate projects to review for a new I-526 petition. The investment has to be at risk, but you can find a project that you are comfortable with by getting it reviewed by immigration counsel and investment advisers.

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    Ian E Scott

    Immigration Attorney
    Answered on

    The EB-5 investment has to be subject to risk of loss to make you eligible for the program. Due diligence is really the tool that you have to assess an EB-5 investment. I do not believe statistics exist that show situations where regional centers fail or investments are not returned.

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