EB-5 in true colors

You are making equity investment in a company created for raising EB-5 capital for specific project

EB-5 is a passive investment: you don’t have to manage the company, hire employees, pay taxes, chose project to invest in, etc.

All these decisions are made for all EB-5 investors by the management company, and it is important to understand who will manage your capital

As an equity investor, legal recourse to contest management decisions are limited under derivative claim theory and business judgement rule

Your investment is earmarked for specific project, so you should carefully analyze it to understand repayment chances

Your capital is typically provided to the project developer as a loan, and the sole asset of your company is the receivable—the legal right to claim repayment of that loan

If the developer does not repay the loan, you will not get your capital back, so you must be extremely careful when choosing EB-5 project

Your management company will skim most of the interest paid on the loan, your share will be symbolic. Your other EB-5 costs (administrative fees, legal fees, etc.) will make your EB-5 investment unprofitable or generate a loss

Repayment of your capital is not guaranteed, insuring the risks is impossible, you can rely only on commercial, financial and legal analysis of the project

That is why we are here for you to guide you through the process