Private Placement & EB-5 Risk Factors

Common Private Placement & EB-5 Risk Factors

Private placements, including those offered through the EB-5 Immigrant Investor Program, are subject to U.S. securities laws and regulations. Private placements and EB-5 offerings have extensive risks and are speculative in nature. Therefore, it is important that anyone considering participating in a private placement or EB-5 offering understand the risks associated with such offerings.

Nothing contained in this website should be considered an offer to sell securities. The information contained herein is for informational purposes only. Only a formal, privately distributed offering memorandum and appropriate securities documents, fully executed by an accredited investor, will represent a sale of investment.

Private Placements

Private placements, including those offered through the EB-5 Immigrant Investor Program, are subject to U.S. securities laws and regulations. Private placements and EB-5 offerings have extensive risks and are speculative in nature. Therefore, it is important that anyone considering participating in a private placement or EB-5 offering understand the risks associated with such offerings.

Financial Risk Factors

Below are several financial risk factors that are common among private placements and EB-5 offerings. This list is not comprehensive and official offering documents should be reviewed with an appropriate professional prior to making any investment decisions.

  • Investors may lose their entire investment including additional costs and fees paid
  • Investment capital is not guaranteed and does not have rights of redemption
  • Returns are not guaranteed
  • Investments may not be transferable or may have limited transferability
  • Investments are usually in an illiquid security
  • If investment is in a new business enterprise it may have limited or no operating history
  • Investments may be subordinate to other financing arrangements
  • Investments might not be secured against an asset or may have limited security
  • Fraud or misuse of funds may occur

Immigration Risk Factors (EB-5 Offerings)

  • An investor may be denied a visa for reasons including, but not limited to:
  • Providing false or misleading information to USCIS or other government agencies
  • Having certain political affiliations
  • Having certain medical conditions
  • Having committed certain crimes or having violated certain rules and regulations
  • An investor may be denied a permanent visa for reasons including, but not limited to:
  • Not creating the requisite number of jobs
  • If the investment was not sustained or at risk during the requisite investment time period
  • If a material change to the business plan has occurred
  • An investor’s child may “age out” and become ineligible for a visa under the parent’s application
  • If regional center designation is revoked
  • USCIS may revise existing policy that could cause a previously submitted petition to be denied
  • Congress may substantially change immigration laws and retroactively apply them
  • Congress may cancel or allow the EB-5 regional center program to lapse
Menu