How can I safely choose an EB-5 project before program changes occur?

I recommend that you work with an experienced EB-5 immigration attorney who can discuss your source of funds and then quickly prepare the I-526 whereas you have invested in a pre-approved project.

Many projects and regional centers already incorporate industry best practices, and all projects must be compliant with EB-5 laws and regulations. All investments are "at risk." You can help protect yourself by retaining experienced immigration counsel and business/investment advisers to review the project.

The EB-5 regional center program has been extended until December 11 by a continuous resolution, not a statute. If a statute is passed, then the new requirements of a higher investment amount may be retroactive to October the 1st. This means that if you invest $500,000 now, you may have to invest $800,000. However, you may start the EB-5 process by retaining an experienced EB-5 attorney and start preparing the authentication of the lawful source of investment funds and start inquiring into EB-5 regional center projects. Then when the new statute becomes law, you will determine if you accept the new investment requirement and, if so, you can then make the personal investment.

The program itself is safe. If anything is unsafe, it is that many people do not engage in "due diligence" to determine the background of the project and its participants. If you believe you want to act before changes, then I would stay with larger regional centers with proven track records.

With the looming changes, the safest way to invest with the lower amount and be grandfathered would have been to invest in a regional center that has an approved project and work with a very experienced EB-5 attorney to prepare and file quickly.

The safety of the program is dependent on your choice of the regional center in which you choose to invest. I recommend that you ask your attorney or broker dealer for a recommendation based on reliable third party due diligence. Be certain to ask your attorney or broker dealer what their compensation is for the recommendation to you.

It is critical to do careful due diligence; there are many due diligence experts.

When investing with a regional center, there is always risk of losing your money and also risk of not getting a green card. If you want to manage your risk, there are some very established regional centers that have a proven track record and that have been around for many years. Most of these post statistics on the number of I-526 and I-829 approvals so that objective data is available. Past results do not predict future outcome, but the data is available.

You should hire a U.S. securities attorney, U.S. investment adviser, and maybe a U.S. accountant to review the terms of any potential deal. In addition, you may (emphasize may) be able to purchase fraud-based insurance from a mono-line carrier such as Lloyds or XL, but this would be very expensive. Remember that EB-5 funds are and must be "at risk" in the investment vehicle, and you must be prepared for that. But care in looking through any deal and making sure it meets your objectives is always your best protection.