How EB5AN Stepped In to Protect Wohali Utah’s EB-5 Investors

Any development can face challenges. Market demand can shift. Construction timelines can change. Financing can become tighter. Sales or operations can move more slowly than expected. Investing always involves a degree of risk.

In fact, the EB-5 program requires investments to satisfy an “at risk” requirement, which means the outcome of the investment cannot be guaranteed. For EB-5 investors, risk can be split into two key categories: immigration risk (failing to obtain a Green Card) and financial risk (not being repaid in full or on time).

The goal, then, is to choose projects that limit these risks. EB-5 investors should look for projects that offer strong protections—especially related to job creation and financial security.

The key question is this: What happens when things do not go according to plan?

The answer to that question largely depends on how the EB-5 fund’s leadership—its general partner—responds to challenges as they arise.

The EB-5 fund’s general partner should have the experience, resources, and commitment to act when investor interests are at stake. When a project is in trouble, a strong general partner will take action to help EB-5 investors remain compliant with the EB-5 program and to protect the project’s value. Despite any challenges a project may face, the goals remain positive immigration outcomes and full repayment for all EB-5 investors. For a project in distress, passive oversight is not enough.

Recent challenges with the development of EB5AN’s Wohali Utah rural EB-5 project show why having strong EB-5 fund leadership matters.

Wohali is a golf community being developed in Coalville, Utah, that was financed in part by a loan from an EB-5 fund sponsored by EB5AN. Unfortunately, the developer defaulted on the EB-5 loan and filed for Chapter 11 bankruptcy. Cases like this often lead to poor outcomes for EB-5 investors: the denial of their immigrant petitions and/or the complete loss of their investments.

But EB5AN, as the regional center sponsor and general partner of Wohali’s EB-5 fund, moved quickly to protect its investors.

This article looks at how the Wohali EB-5 project’s problems and EB5AN’s response provide an example of what strong, active EB-5 fund leadership looks like. First is a brief summary of what challenges a project might face and what can be done to help protect EB-5 investors. The article then looks at Wohali as an example of how EB5AN’s initial work structuring the project and its decisive actions helped safeguard EB-5 investors.

Any EB-5 Project Can Face Difficulties, But Some Projects Are Safer Than Others

Because no EB-5 project can eliminate all risks, the potential for some issue to arise is always present. Most EB-5 investments are in real estate projects, which are naturally subject to a number of risks. Projects can face unexpected challenges as real estate markets change, costs and timelines shift, financing conditions tighten, and much more. These realities are part of investing in real estate development.

Any EB-5 development project can face problems—even with an experienced developer and a good plan. A strong track record does not always translate into future success. Sometimes, events happen that are outside the developer’s control.

Well-Structured Projects Have Investor Protections

Just because the EB-5 program requires investments to be at risk, that does not mean that the level of risk must be high. A well-structured EB-5 project will offer EB-5 investors protections that limit immigration and financial risks.

For example, EB-5 projects are allowed to be structured as secured loans. A loan on a real estate project could be secured by a deed of trust or mortgage on the property. Institutional lenders like banks usually require their loans to be secured. EB-5 investors should expect this same basic financial protection.

An EB-5 project can also offer protections related to EB-5 investors’ immigration goals. For instance, a developer can guarantee that it will spend enough money on a project to create at least 10 jobs per EB-5 investor. This helps limit the risk that an EB-5 investor’s application is denied because too few jobs were created.

EB-5 projects can also be structured to provide accelerated repayment to EB-5 investors whose immigrant petitions are denied. A refund guaranty can enable an investor to be repaid in months instead of years, which reduces financial risk and makes it easier for the investor to invest in another EB-5 project.

These protections are basic, but they can make a huge difference when things do not go according to plan.

Strong EB-5 Fund Leadership Takes Decisive Action

While risks can be limited through basic EB-5 investor protections, projects may still face problems. That is why it is vital to work with experienced EB-5 fund leadership. The best EB-5 funds have general partners with the knowledge, skill, and resources needed to deal with issues when they arise.

Experienced general partners will know what to watch for to catch problems early. Attentiveness is essential: small problems can become big problems very quickly. But knowing what to look for and paying close attention are not enough by themselves. An EB-5 fund’s general partner must also have the expertise to know what to do when issues arise—and the integrity and commitment to take action. Finally, the general partner cannot address a problem unless it has access to the resources it needs.

When an EB-5 fund’s general partner has these qualities, it can take decisive action when a project faces problems.

“Even when an EB-5 project developer faces financial setbacks, the fund’s general partner can step in to protect its investors’ capital and to help preserve their immigration status,” said Sam Silverman, managing partner of EB5AN. “We never want to see a project in distress, but we always plan with the worst-case scenario in mind. Wohali shows exactly why careful planning and active EB-5 leadership matter so much for investors.”

The Wohali Project Shows What Protecting EB-5 Investors Looks Like

Since its founding, EB5AN has approached project selection and structuring with a focus on downside protection. Rather than assuming favorable conditions will continue indefinitely, EB5AN’s team evaluates projects from a conservative perspective and considers how they may perform under adverse circumstances. Using this approach, EB5AN is able to structure safer EB-5 deals from the outset, with protections for EB-5 investors in the event of a setback.

As discussed above, basic protections for EB-5 investors serve as a first line of defense. Wohali demonstrates why careful project structuring matters. The EB-5 investment in Wohali held a senior secured position backed by recorded collateral and enforceable legal rights. When the developer later defaulted on its obligations, those protections gave the EB-5 fund a clear path to protect the interests of its investors.

The EB-5 fund’s secured position allowed EB5AN to pursue legal remedies, protect the project’s assets, and remain actively involved in shaping the path forward.

The following sections provide some background about what happened at Wohali, how EB5AN’s experience and attentiveness enabled it to take decisive action, and what EB5AN did to protect its EB-5 investors.

What Happened at Wohali

Wohali is a rural development in Coalville, Utah, set against a stunning mountain backdrop. The luxury master-planned resort features an 18-hole championship golf course and other amenities.

The EB-5 fund provided financing to the project through a senior secured loan. EB5AN carefully structured this loan to protect its EB-5 investors’ interests. No specific problems were apparent at that time, but EB5AN’s standard is to provide strong protections for investors in case problems arise. Unfortunately, these protections proved necessary.

Like many real estate developments, Wohali faced business challenges. Substantial capital was invested in infrastructure, amenities, and other project improvements. Sales activity, however, did not progress as the developer had anticipated. As available financing was spent and liquidity pressures increased, the developer eventually defaulted on the EB-5 loan. Shortly after that, in August 2025, the developer filed for Chapter 11 bankruptcy protection.

The bankruptcy filing created new challenges, but it also established a legal framework through which the EB-5 fund could enforce its rights as a senior secured lender. Rather than allowing the process to unfold passively, EB5AN moved quickly to protect the fund’s secured position, preserve the value of the project’s assets, and safeguard investors’ immigration interests. Those actions placed the fund in a strong position to help guide the project through a complex restructuring process.

The following sections provide a more detailed look at what EB5AN did to protect its EB-5 investors once the project entered bankruptcy.

EB5AN Took Action to Protect EB-5 Investor Capital

At EB5AN, we talk a lot about being committed to our EB-5 investors. Talk is easy. Talk is cheap. But when a project faces problems, true commitment requires more than just talk. Showing commitment takes effort and can be costly.

Once Wohali entered bankruptcy, EB5AN had a choice. It would have been easy to just wait for the bankruptcy process to run its course and hope for a favorable result. The challenging option—which required a major investment of time and money—was to take the steps needed to protect investor capital and maintain EB-5 compliance.

EB5AN chose to take the hard path because it truly is committed to its EB-5 investors.

EB5AN Stepped in to Protect the EB-5 Fund’s Collateral

The first priority was control and oversight. Because of concerns about the developer’s prior management, EB5AN asked the bankruptcy court to appoint an independent Chapter 11 trustee. The court granted that request. This early step placed the project under the supervision of an independent fiduciary and helped protect the project’s assets while the bankruptcy process moved forward.

EB5AN also provided necessary funding to help preserve the project. During bankruptcy, a stalled real estate development can lose value quickly. Insurance, utilities, maintenance, security, payroll, legal work, and professional oversight all require capital. If these items are not funded, the property can deteriorate. In this case, that would mean the collateral securing the EB-5 fund’s loan would lose value, greatly increasing the financial risk for EB-5 investors. To avoid that outcome, the EB-5 fund supported debtor-in-possession financing, known as DIP financing, to help protect the project’s assets and maintain the EB-5 fund’s senior secured position.

The court approved the DIP financing on an interim basis in December 2025 and on a final basis in February 2026. This financing was crucial. Without it, another lender could have attempted to provide funding on terms that might have weakened the EB-5 fund’s position. By stepping in, EB5AN helped protect the value of the project.

The reason it was so important to protect the value of the project was that the EB-5 loan had been structured with the project’s property as its collateral. When the developer went bankrupt, the primary hope for the EB-5 fund to be repaid was tied to this property’s value.

But protecting the project’s property was not an end in itself. Under the EB-5 loan, the EB-5 fund had certain rights that it would need to enforce to protect its investment.

EB5AN enforced those rights.

EB5AN Worked to Enforce the EB-5 Fund’s Rights and Acquire the Project’s Property

Protecting EB-5 investors during the bankruptcy process has required extensive litigation. EB5AN has contended with third parties working to impair the EB-5 fund’s secured position. Ultimately, the EB-5 fund entered into a court-approved settlement that preserved its legal position and secured its right to acquire the project’s assets. Rather than allowing the project to lose value through uncertainty, delay, and processes outside the EB-5 fund’s control, EB5AN helped position the EB-5 fund to protect the project’s assets directly.

On May 20, 2026, the EB-5 fund acquired the developer’s assets through a credit bid. A credit bid allows a secured lender to use its secured claim as the purchase price for the collateral. This allowed the EB-5 fund to acquire the project’s assets without paying the full purchase price in new cash. It also prevented the project’s property from being sold to a third-party bidder at a distressed value. The EB-5 fund obtained title to the project’s property free and clear of liens and encumbrances, except for those expressly assumed.

This outcome put EB5AN in a stronger position to stabilize the project, preserve its value, and continue taking steps that increase the chances that all EB-5 investors are repaid in full.

EB5AN’s Managing Partners Advanced Capital to Protect the EB-5 Fund

As discussed above, when a project is distressed, its legal rights matter. But legal rights alone are not enough without the resources to enforce those rights. If an EB-5 fund’s general partner is unwilling or unable to fund the legal process needed to enforce the EB-5 fund’s rights, the outcome for EB-5 investors will not likely be positive.

In the case of Wohali, EB5AN’s managing partners did more than direct the strategy and hope for a positive outcome. Sam Silverman and Mike Schoenfeld advanced millions of dollars of capital to protect EB-5 investors. The money they provided funded DIP financing and paid legal fees, professional costs, and other expenses needed to preserve the project’s assets and protect the EB-5 fund’s senior secured position. These costs were significant but necessary to protect the EB-5 investors.

By putting their own capital behind the process, EB5AN’s managing partners showed true commitment to Wohali’s EB-5 investors. They supported the project through a complex, difficult situation, and remain aligned with investors in pursuing the best possible outcome.

EB5AN Developed a Restructuring Plan and Secured Investor Support

Because of EB5AN’s decisive actions, the EB-5 fund is no longer waiting for others to determine its financial future. Repayment, however, ultimately depends on the value of the project. By acquiring the project’s assets, EB5AN is better able to preserve and build the project’s value.

But the project still requires additional work, which means it needs fresh capital and expert management to see the project through to completion. EB5AN developed a plan to achieve these objectives.

While EB5AN was not required to put its restructuring plan to a vote, it chose to move forward with the plan only with the majority support of the EB-5 fund’s limited partners. The result was decisive: more than 80% of the voting limited partners approved the proposed plan.

Within just weeks of the EB-5 fund’s acquisition of the property, EB5AN has already begun to implement this plan. EB5AN has engaged Troon Privé, the largest professional club management company in the world, to open and stabilize the golf course. And a development leadership team has visited Wohali to assess the project.

EB5AN Worked to Keep Wohali’s EB-5 Investors on the Path to U.S. Green Cards

When a project is in distress, EB-5 investors have two key immigration concerns. First, will the project create the required 10 jobs per investor? And second, will the invested money meet the at-risk requirement? If an EB-5 investor fails to meet either of these requirements, his or her immigrant petition will be denied.

For EB-5 investors in Wohali, the job creation requirement has already been satisfied. Based on the project’s economic analysis, enough money has been spent on qualifying costs to create more than enough eligible jobs for every investor in the EB-5 fund.

The project has received Form I-956F approval, and most of Wohali’s EB-5 investors have already received Form I-526E approval. When it is time for the EB-5 fund’s investors to file their Form I-829 petitions, they will be able to provide the required evidence of sufficient job creation.

The remaining immigration concern, then, is preserving EB-5 compliance by keeping investor funds “at risk.” The restructuring plan is designed to achieve this goal and prevent the EB-5 investment from being deemed passive land ownership.

Wohali: An Example of Outstanding Active EB-5 Sponsorship

Wohali faced real financial distress. But the outcome for EB-5 investors has been shaped by the protections EB5AN put in place before difficulty arose and by the actions EB5AN took as the project began to face problems.

With enough eligible jobs already created for all of Wohali’s EB-5 investors, EB5AN is now focused on minimizing immigration and financial risk. EB5AN has taken the necessary steps to keep investor capital “at risk” and will continue to monitor EB-5 compliance.

Throughout this process, rather than passively watching the situation unfold, EB5AN took decisive action to protect its EB-5 investors. EB5AN enforced the EB-5 fund’s senior secured loan rights, helped preserve the project through the DIP financing, secured a court-approved settlement, and guided the EB-5 fund’s acquisition of the project’s assets.

To support the EB-5 fund during this bankruptcy and restructuring, EB5AN’s managing partners have advanced millions of dollars of capital. EB5AN developed a plan to maximize the likelihood that all of Wohali’s EB-5 investors will be fully repaid—a plan that received strong support from the investors.

As noted by Mr. Silverman, “When the Wohali project encountered distress, EB5AN did not stand back and wait for others to determine the outcome. We enforced the EB-5 fund’s rights. We funded the process ourselves. We took every step possible to protect the project’s assets, and we continue to do so. Through all of this, we have kept investors’ immigration and repayment objectives at the center of every decision.”

Despite everything that has happened, we believe the Wohali EB-5 fund is positioned for success. And while EB5AN cannot guarantee a favorable outcome, we can say with confidence that we never stood idly by.