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

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