How does an investor receive profit if the business fails?

In the EB-5 program, capital is placed at risk (‘at risk’), a core requirement of the program itself. This means, plainly, that there is no guarantee of return: if the business fails, no mechanism exists to convert a loss into profit.

Financial return depends entirely on the success of the venture. If the project does not succeed, the investor may not recover part or all of the amount invested, and may not obtain any profit either. This is the same market risk inherent in any productive investment.

It is worth being clear about the nature of the program: the central objective of EB-5 is permanent residency in the United States, not the promise of significant financial return. Any eventual gain is a consequence of business performance, never a certainty.

Some projects are structured to share risk or include mechanisms for partial capital protection, but this mitigates, and does not eliminate, exposure. For this reason, study the project of interest thoroughly, verify information through official sources such as USCIS, and consult with a specialist before investing.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.