PRIVATE PLACEMENT & EB-5 RISK FACTORS
Common Private Placement & EB-5 Risk Factors
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, maybe 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
