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Questions and Answers > EB-5 Investments

What happens with my EB-5 investment if the EB-5 program is not reauthorized on June 30?

The EB-5 program could be cancelled and if this happens will all the people who have applied for the program and have applications that have been sitting with USCIS for years loose everything? What happens with the money invested?

Answers

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    Belma Demirovic Chinchoy

    Immigration Attorney
    Answered on

    What happens to the money invested is governed by the PPM and other investment contracts you signed.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    First, we have had at least 17 extensions and the anxiety about this extension is, in my opinion merely scare tactics to enact a bad bill. Technically, until a visa is issued and the person lands, they not green card holders.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    We do not know for sure but I would be shocked if there is any harm to persons who have already filed prior to the sunset date.

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    Robert V Cornish Jr

    Securities Attorney
    Answered on

    Your PPM will govern how your investment will be handled. Most PPMs have exculpatory language dealing with potential termination of the EB-5 program and the disposition of funds. This is a generalization, but most PPMs I have seen do not require the project to return the money if the EB-5 program is terminated. The investment runs its course and the investor remains at risk while that happens. What the investors may do is governed by the LP Agreement or Operating Agreement for the investment, which could include a variety of actions. Suffice it to say none of them are attractive. If you believe the program will end on June 30, your investment decisions should be guided accordingly with the assistance of your retained professionals. Your PPM will govern the time and notice requirements of a redemption request. A securities attorney should assist you in the review of your offering documents, if they have not already.