While the EB-5 program is an “at-risk” investment, an investor can still work towards reducing the risk of capital loss. Some ways to mitigate risk are by looking at factors such as financing and job creation. For instance, does the project have all the financing in place and sufficient funds to complete construction without EB-5? Also, does the developer have enough capital invested that it incentivizes them to stay in the project long term? Investors should also ensure that there is a high job cushion and the project is using a reliable job calculation model.
Job creation is critical for permanent residency issuance. Another important question is, does the project intend to redeploy EB-5 funds and are there specific requirements that need to be followed such as making sure a 3rd party verifies it meets the requirements of USCIS and it has the capacity to pay back. To learn more about how to mitigate risks of your EB-5 investment, please contact us.