EB-5 Risk Disclosures

Investment capital must remain at risk

To qualify for EB-5, an investor's capital must be placed at risk for the purpose of generating a return. If an investor is guaranteed a return, or a rate of return, on all or part of the capital, that amount is not considered at risk. No return of capital, rate of return or redemption right can be promised, and an investor may lose the entire investment.

Project and sponsor risk

The success of any project depends on its business plan, its management, market conditions, construction and operating costs, and the availability of other financing. Delays, cost overruns, lower-than-projected revenues or the failure of the business can reduce or eliminate the value of the investment and the jobs it creates.

Immigration risk

Eligibility, adjudication and visa availability are determined solely by U.S. Citizenship and Immigration Services (USCIS) and the U.S. Department of State. A petition may be denied; processing times vary and can be long; visa availability for some countries of birth is subject to retrogression; and Congress may change or end the regional-center program (currently authorized through September 30, 2027).

Job creation

Each investor's investment must be credited with the creation of at least 10 full-time jobs for qualifying U.S. workers. Job creation is estimated in advance and verified later; if a project creates fewer jobs than projected, some investors may not satisfy the requirement and conditions on residency may not be removed.

Regional-center designation is not government approval

Designation of a regional center by USCIS does not mean that USCIS, the SEC or any other government agency has approved or endorsed any investment, and a regional center's designation can be terminated. The SEC and USCIS have jointly warned investors to be suspicious of guaranteed returns and to verify every claim independently.

Illiquidity and lack of control

Interests in EB-5 projects are not publicly traded, cannot be freely transferred, and typically must be held for a period that may exceed the immigration timeline. Investors generally have no role in management.

Investment amounts and costs

The minimum investment is currently $1,050,000, or $800,000 in a targeted employment area or infrastructure project; these amounts are adjusted for inflation every five years beginning January 1, 2027. Administrative fees, legal fees, USCIS filing fees and the EB-5 Integrity Fund fee are additional to the investment.

Important information

EB-5 eligibility, adjudication and visa availability are determined solely by U.S. Citizenship and Immigration Services and the U.S. Department of State. IGM cannot and does not guarantee approval of any petition, issuance of any visa, the timing of any adjudication, or the return of invested capital. EB-5 capital must remain at risk; no return of capital or rate of return is guaranteed. Designation of a regional center by USCIS does not mean that USCIS, the SEC or any other agency has approved or endorsed any investment. Investment amounts are currently $1,050,000, or $800,000 in a targeted employment area or infrastructure project, and are subject to periodic adjustment. Prospective investors should consult independent immigration and securities counsel. Offerings are made only through a private placement memorandum to eligible investors.

Sources

• USCIS — About the EB-5 Visa Classification
• USCIS Policy Manual, Volume 6, Part G, Chapter 2 (at-risk requirement)
• SEC / USCIS Investor Alert — Investment scams exploit the Immigrant Investor Program