As of mid-May, there is less than five months left until the U.S. EB-5 Regional Center Program expires on September 30. Currently, the USCIS plans to significantly increase immigration application fees, once again triggering an EB-5 price hike butterfly effect. To avoid the many uncertainties of EB-5 policy changes and price increases, many investors are rushing to catch the last train for the $500,000 investment immigration program. Worldway immigration experts, as always, remind investors: There are three major risks in U.S. EB-5 investment immigration. Investors should carefully select high-quality projects and prioritize those with low risk and excellent overall quality.
Investment Risk
Investment risk refers to the concern that the project an investor has chosen may encounter issues, affecting the recovery of the principal.
Employment Risk
Employment risk refers to whether the project can create 10 jobs within two years after the EB-5 investor obtains a conditional green card, thereby meeting the USCIS requirements for the I-829 petition to remove conditions and successfully transitioning to a permanent green card.
Moral Risk
Moral risk refers to losses caused to a project due to a lack of ethics or non-compliant operations by the project investor or actual controller, which in turn affects the interests of the investors.
In recent years, the U.S. Securities and Exchange Commission (SEC) has strengthened its supervision of EB-5 projects and taken a series of enforcement actions against non-compliant projects. This has made moral risk increasingly a focus for investors, becoming one of the most concerning risks alongside the traditional investment and employment risks.
How to Avoid the Three Major Risks
Worldway U.S. immigration experts point out: When choosing an EB-5 project, investors generally need to comprehensively consider factors such as whether the project entity is strong, the developer's strength, the robustness of the investment structure, the reliability of the investment method, whether employment creation is sufficient, the quality of collateral and guarantees, the effectiveness of the exit mechanism, and whether the business ethics and conduct of the project party/investor/regional center are honest and reliable.
In addition, investors can also conduct multi-party weighing, due diligence, and strict supervision of the project and all links involved in the investment process based on personal verification, objective media evaluations, authoritative institutions, and independent third-party professional organizations. In particular, the "transparency of the investor's investment behavior and process" is a critical consideration for avoiding risks.
Worldway has been deeply engaged in U.S. EB-5 investment immigration for 10 years. Based on a precise analysis of 2016 U.S. investment immigration trends, we have launched four high-quality EB-5 projects—the DLJ Four Seasons Hotel Resort project (a project where investors have been successfully approved and repayment is made by a large real estate fund), the 90 Columbus Apartment project (a rare, approved Manhattan, New York concept apartment project), and the Nevada Solar Power project (a high-employment project guaranteed by a large New York-listed company). These four projects, with their advantages of low investment and repayment risk, sufficient job creation, sound exit mechanisms, high-quality collateral and guarantees, strong developer strength, reliable project development teams, and effective supervision, have become excellent choices for investors to cope with the many uncertainties of U.S. investment immigration policy changes and price hikes. For more information on projects and events, please inquire at: 400-138-2929