What are the main risks of EB-5?

EB-5 involves three categories of risk. Immigration risk encompasses petition denial (if USCIS determines the investment does not meet requirements), processing delays (which can extend timelines by years), and visa retrogression (which can delay green card issuance for backlogged countries). Financial risk encompasses capital loss (the investment is at risk by design), project failure (the business may underperform or fail), and delayed return (capital is typically locked up for five to seven or more years). Regulatory risk encompasses program changes (Congress could modify the program), investment amount increases (CPI-U adjustments could raise minimums), and regional center compliance issues (a center's designation could be terminated).

These risks are inherent to the program's structure. Mitigation depends on project selection, qualified legal counsel, and thorough understanding of program requirements.