Global Immigration Partners PLLC Unveils In-Depth Report On EB-5 Investment Risks And How To Evaluate A Safe Project

(MENAFN- EIN Presswire) EINPresswire/ -- Global Immigration Partners PLLC (GIP), a leading global immigration law firm, today published a comprehensive report titled“What Are the Risks of EB-5 Investments, and How Can I Evaluate a Safe Project?” The report provides prospective investors with a clear and honest overview of the financial and immigration risks associated with the EB-5 Immigrant Investor Program - and offers a practical framework for evaluating EB-5 opportunities.

Understanding the Risks: Capital, Credibility, and Regulatory Exposure

While EB-5 remains an established pathway to U.S. permanent residency for foreign investors, GIP emphasises that EB-5 investments are not without substantial risks. As the report outlines:

Investments under EB-5 must be“at risk,” which means capital is not guaranteed and returns are uncertain. If a project fails, stalls, or underperforms, investors may lose some or all of their money.

Many EB-5 structures place investors in subordinated or equity positions, behind senior lenders in the capital stack. If the project cannot meet repayment obligations, EB-5 investors may be among the last repaid - or not repaid at all.

Market risks (inflation, regulatory delays, cost overruns, zoning or supply-chain issues) can further jeopardise outcomes.

In short, yes, investors can lose their money.

Evaluating Project Credibility: The Key to Safer EB-5 Participation

GIP's report advises prospective investors to thoroughly vet and evaluate any EB-5 project before committing capital. Key criteria include:

Developer track record - Has the developer successfully completed similar projects? Were past investors repaid on time? Are there defaults or litigation in the developer's history?

Reputation of the Regional Center or sponsor entity - A transparent history of compliance, clear reporting, and credible past performance matter.

Project structure and documentation - Transparent use-of-funds disclosures, clear business plans, realistic budgets, and defined exit strategies are vital.

Independent third-party due diligence - Feasibility studies, market demand analysis, and construction-budget reviews help to validate assumptions and uncover hidden risks.

Financial Protections and Mitigating Risk

Although EB-5 investments carry inherent risk, some project structures offer relatively stronger financial protections. According to the GIP report, investors should prioritise EB-5 offerings that feature:

Senior or secured loan positions (rather than junior-equity placements), backed by collateral when possible.

Fixed-price construction contracts or completion guarantees, which help guard against cost overruns or stalled development.

Projects already under construction (or near completion) before EB-5 capital is committed - reducing construction-phase risk.

Strong“job cushions” - meaning a meaningful buffer above the required job-creation threshold, giving room for delays or under-performance.

Distinguishing Immigration Risk vs. Financial Risk

The GIP report underscores that EB-5 investors should view risk through two distinct lenses:

Immigration (job creation) risk - To obtain a green card, every EB-5 project must create at least 10 qualifying jobs (direct or indirect, depending on the structure). If job creation falls short, immigration benefits may be compromised.

Financial (repayment) risk - Even a project that satisfies job-creation requirements might fail financially. If revenues are insufficient or senior lenders require payment first, EB-5 investors may suffer losses or delayed repayment.

A project that has strong potential on both fronts - realistic job-creation projections and a robust financial backing - represents a more balanced and safer EB-5 opportunity.

A Practical Due-Diligence Checklist for EB-5 Investors

GIP's published checklist recommends investors consider the following when evaluating a project:

Confirm the developer's successful track record with similar developments.

Prefer projects already under construction or nearing completion over“pre-launch” plans.

Ensure EB-5 capital represents a minority portion of total project financing - reducing overexposure.

Seek secured or senior-loan structures or meaningful collateral backing.

Look for a“job cushion” - ideally 20–50% more jobs than required under EB-5.

Require independent feasibility studies and third-party due-diligence reports.

Insist on transparent documentation - use-of-funds disclosures, business plans, timelines, exit strategies.

Evaluate the underlying economic, market, and demand logic - is the project viable without relying solely on EB-5 capital?

Statement from Global Immigration Partners

“As EB-5 interest grows worldwide, it remains crucial for investors to understand not only the immigration benefits, but the financial and regulatory risks as well,” said Alexander Jovy, Co-Managing Partner at Global Immigration Partners PLLC.“Our new report aims to provide full transparency: what can go wrong, how to identify safe structures, and how to protect both immigration hopes and capital.”

About Global Immigration Partners PLLC

Global Immigration Partners PLLC is a specialized U.S. and global immigration law firm with offices in Washington D.C., London, Rome, and other major cities. The firm assists high-net-worth individuals, entrepreneurs, and families from around the world in navigating investor and business-immigration routes - including EB-5, E-2, L-1, and employment-based green cards. GIP's services cover end-to-end support: due diligence, project selection, petition filing, adjustment of status, and post-approval planning.

For media enquiries, interview requests or further information, please contact:
Global Immigration Partners PLLC
U.S. Office: 1717 Pennsylvania Avenue NW, Suite 1025, Washington, DC 20006
Phone (USA): +1 (267) 507-6078
Phone (UK): +44 020 3769 9624
Website: globalimmigration

MENAFN07122025003118003196ID1110449112