For a person to qualify for the EB-5 investor immigration visa program, he or she must invest money in the United States in a business that is considered to be “at risk”. A concern for many high-net worth Indian investors is whether the project they are investing in is safe and meets the necessary risk requirement but still does not have too much risk, which would prevent the investor from starting a new life in the United States. In addition, many investors do not want to try to meet the necessary risk requirement by allowing their assets to be tied up in a fraudulent investment scheme.
What is “at risk”?
“At risk” is an aspect of the EB-5 visa program application process that would drive most well-educated investors to consult with and consider retaining an experienced EB-5 immigration attorney. The U.S. Code of Federal Regulations requires that for a person to be eligible for an EB-5 Visa, his or her investment must be considered “at risk”. There are no cut and dry guidelines on what makes an investment “at risk”. An investor will rely on their attorney to explain in the memo of their application how their investment meets this guideline.
In basic terms, for an investment to be at risk, the potential for return on a person’s investment is not guaranteed. The Code has said that a mere intention to invest is not enough for a person to meet the at risk standards. However, there is no set quantifiable measure for how to determine the amount of risk that a person must make.
What Risk Is Set in Stone
Although there is no definite measurement of risk, if an immigrant investor has a guarantee of a return, this does not qualify as a risk. The investor must be at risk of losing some of the capital from his or her investment or ending up in the green. There is a fine line between meeting the “at risk” requirement and a risky investment. A financial or investment advisor can help you analyze whether the business you plan on investing in means the former rather than the latter.
Investor Alert
United States Citizenship and Immigration Services (USCIS) and the US Securities and Exchange Commission (SEC) have issued a warning that there are investment scams aimed at exploiting those who could qualify for an EB-5 Visa. This is not the risk that is required for foreign investors. A qualified financially trained corporate and immigration lawyer will be able to assess whether a person is becoming a victim of a scam.
Questions About At Risk Investment
If you have any questions regarding whether your investment qualifies as an “at risk” investment, we have attorneys who are available to work with you. We at EB5 BRICS work with lawyers who have a financial background and have worked with numerous EB-5 applicants. Contact our office for your initial consultation, so we can explain your “at risk” investment.