Source of funds risk
Insufficient source-of-funds evidence is a leading cause of EB-5 denials. Wealthy families often have money that has moved across several jurisdictions, companies and years, which makes the evidence harder, not easier.
Common difficulties
- Profits accumulated over many years and paid out through several layers of companies
- Property sale proceeds that trace back to purchase funds and loans from years ago
- Gifts from parents or relatives, where the donor's own lawful source must be shown
- Cross-border transfers constrained by currency controls, bank compliance reviews or intermediaries
How we handle it
- Plan before funding: which money to use, which documents prove it, and which accounts it passes through
- Five years of personal and business tax records, with every transfer intermediary disclosed
- For loans secured by personal assets, confirm the investor is personally and primarily liable and the collateral isn't a project asset
- For offshore structures, trace to the ultimate beneficial owner and screen for sanctions exposure
Project risk
Projects can be delayed, run over budget, miss sales or leasing targets, or fail to complete. These risks hit both your capital and your green card: if the project doesn't create enough jobs, your I-829 can be denied.
Capital stack
Where you rank
EB-5 capital is usually a mezzanine loan or preferred equity, repaid after the senior bank loan. We assess the senior debt ratio, whether EB-5 is secured, and whether the developer's own equity is large enough to absorb first losses.
Completion risk
Is the guarantee real
A completion guarantee is only worth the guarantor's balance sheet. We review the guarantor's financial statements, not just the existence of a guarantee document.
Developer risk
A record you can verify
We ask for the developer's completion and repayment record on past projects, and verify that other capital is actually in place rather than merely promised.
Exit and repayment risk
Most projects target repayment in about five to seven years, but issuers often have the right to extend. Even a successful project can return capital late because of redeployment or market conditions.
- Capital must stay invested and at risk for at least two years; if the project repays earlier, the money must be redeployed to keep you eligible
- Repayment usually depends on a sale or refinancing, which is exposed to interest rates and markets
- Read the extension terms, the return during any extension, and whether investors can object, before you invest
Immigration risk
- I-526E: problems with source of funds, TEA status or project documents can lead to requests for evidence or denial
- I-829: if the investment wasn't sustained, the jobs weren't created, or the business plan wasn't followed, conditions may not be removed
- Children's ages: long processing can cause a child near 21 to age out without careful CSPA planning
- Residence: long absences from the U.S. after getting the green card can be treated as abandoning U.S. residence
Program and policy risk
The main policy risk for new investors. The Regional Center Program's current authorization expires on September 30, 2027. Petitions filed on or before September 30, 2026 are grandfathered; petitions filed after that may be paused until the program is restored if Congress doesn't reauthorize it on time.
- Minimum investment amounts rise with inflation on January 1, 2027; the figures are not yet published
- The rule proposed in July 2026 could change TEA designation, how the sustainment period is counted, and source-of-funds requirements. See the EB-5 guide
- USCIS fees rise on November 30, 2026
We can't control policy, but before you invest we'll set out the known dates and likely scenarios, and keep tracking them afterwards.
What we won't tell you
So that you can judge the risk accurately, you won't hear any of these from us:
- "Your capital is guaranteed" or "your return is guaranteed"
- "100% approval"
- "This is the last chance; you need to decide today"
If anyone pitches an EB-5 project to you this way, pause and get an independent view first.
The SEC and USCIS have issued a joint investor alert on common EB-5 fraud tactics: SEC Investor Alert: Investment Scams Exploit Immigrant Investor Program.