I understand that an EB-5 investment has to be “at risk,” but what exactly does “at risk” mean? What are some ways in which an EB-5 investment would violate this at risk requirement?
Answers
Ed Beshara
Find an EB-5 Visa Lawyer: Immigration AttorneyThe EB-5 investment amount has to be at risk of losing the entire amount. If the agreements signed by the EB-5 investor state any portion of the investment amount will be a guaranteed return to the investor, then the EB-5 project and the EB-5 investor's petition I-526 may be denied.
Salvatore Picataggio
Find an EB-5 Visa Lawyer: Immigration AttorneyImmigration policy requires funds to be at risk of loss and have the opportunity for financial gain as well. The amount of risk is not part of the immigration requirements, but your immigration attorney should be able to refer you to an investment advisor knowledgeable in EB-5 to help with investment questions.
Richard A Gump, Jr
Find an EB-5 Visa Lawyer: Immigration Attorney"At risk" means that the investor could lose all funds if the business is not successful. Clauses in a purchase agreement that allows the investment to be kept in escrow or a payback agreement if revenues do not meet a certain level are examples of an investment not being at risk.
Bernard P Wolfsdorf
Find an EB-5 Visa Lawyer: Immigration AttorneyIf there are guaranteed returns, then it is not sufficiently at risk. There is no clearly defined level of risk, so many seeks collateral for loans.
John J Downey
Find an EB-5 Visa Lawyer: Immigration AttorneyBasically, "at risk" means that you have no "guarantee" that you would receive any return on your investment or that you could not lose the investment should the project fail.
Raymond Lahoud
Find an EB-5 Visa Lawyer: Immigration AttorneyThere really are no defining "at risk" conditions. Nonetheless, there can be no guarantee of recovering any of the investment.
A Olusanjo Omoniyi
Find an EB-5 Visa Lawyer: Immigration AttorneyBeing "at risk" means that the entire investment can be lost. There are various ways that the EB-5 investment can violate the at risk requirement; for instance any investment agreement that guarantees the return of EB-5 investment funds is a violation. Also, any investment that appears as if the investment is not an investment at risk, but a loan with a guarantee will be a violation. Along the same line, any investment that is made to appear as if any part of the fund rather than the whole fund is not at risk is unacceptable and will be a violation.
BoBi Ahn
Find an EB-5 Visa Lawyer: Immigration AttorneyFor EB-5 purposes, "invested funds at risk" means that the investment must be on "real" terms, with no guarantees of return of the initial capital.
DISCLAIMER: the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal, immigration, and financial experts prior to participating in the EB-5 program. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public: do not include confidential information in your question.