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I Invested in a Failed EB-5 Project! Now What?

Updated: Jan 20

How to Protect Your Investment, Your Green Card, and Your Peace of Mind


At EB5-USA, we’ve worked with hundreds of families investing in U.S. immigration through the EB-5 program. While most EB-5 projects complete successfully, some do not. This is why selecting the right project from the start is the most important decision. From delays and budget issues to outright fraud, EB-5 project failure—though rare—can happen. The question is: what should you do if it happens to you?


Whether you’re still waiting on I-526E approval or have already received your conditional green card, there are steps we can take to protect our immigration status and recover our investment.



1. First, Don’t Panic—Your Outcome Depends on Where You Are in the Process


Not all EB-5 failures lead to lost green cards or capital. The timing of when a project fails determines what happens next:


✔ Before I-526E Approval


If our I-526E petition hasn’t been filed or approved yet, our investment may still be in escrow. Many projects offer a refund clause in case of petition denial or incomplete fundraising. If our petition is pending and the project collapses, our immigration attorney can help us withdraw the petition and refile with a new project using the same priority date (in most cases, under RIA).


✔ After I-526E Approval, Before I-829


This is the most complex phase. If the project fails after our I-526E is approved and we’re in conditional residency, USCIS will evaluate whether the job creation requirement was satisfied. If enough jobs were created (even temporarily), our I-829 approval may still be possible. We may also be able to “redeploy” our capital into a new project.


✔ After I-829 Approval


If our permanent green card is already approved, our immigration status is safe. However, the return of our $800,000 investment will depend on the project's exit strategy and financial condition. Legal action may be necessary if the developer defaults.


2. Financial Options After a Project Fails


Check Escrow & Refund Clauses


Some projects offer refund protection if USCIS denies our petition or the NCE fails to raise the required funds. We should review our Limited Partnership Agreement and PPM to understand our rights.


Redeployment


Under the Reform and Integrity Act (RIA), our investment can be redeployed into a new EB-5 project if the original one fails. We must act within 180 days of learning of the failure to preserve our eligibility. Redeployment must still meet EB-5 requirements and be tracked properly.


Consider Legal Action


If the project failure involved fraud, misuse of funds, or developer misconduct, we may have grounds to file civil claims. Some investors have recovered partial capital through lawsuits, SEC actions, or insurance claims. We should seek legal counsel with experience in EB-5 disputes.



3. Immigration Protections You May Still Have


Even if the project fails, we may still qualify for a green card—depending on how much of the EB-5 requirement was fulfilled.


  • Good-faith investor protections: Under RIA, investors who acted in good faith may be protected from losing their status if the failure wasn’t their fault.

  • Job creation credit: If the required 10 jobs were created before the failure, we may still qualify for I-829 approval.

  • Re-filing option: If our I-526E is denied due to project failure, we may file a new one with another project and retain our priority date.

  • Child protection: If our dependent child is aging out, USCIS may allow us to maintain their eligibility during the transition.


4. What We Learned from Jay Peak (and Why It Still Matters)


The largest EB-5 failure in U.S. history—the Jay Peak ski resort scandal—impacted over 800 investors. However, many of those investors still obtained green cards because:


  • They invested in good faith.

  • Their money was traceable.

  • Enough jobs were created before the fraud was uncovered.


Others recovered funds through court-appointed receiverships. The takeaway? Even in worst-case scenarios, immigration and capital outcomes are still possible—if we act quickly and work with the right professionals.


5. Protect Yourself Moving Forward


While project failure is rare, we can take steps to protect ourselves before we invest:


  • Review project documentation carefully (PPM, use of funds, risk factors).

  • Ask about job creation buffers—130%+ is ideal.

  • Ensure funds are properly escrowed or secured.

  • Confirm that the project is fully RIA-compliant.

  • Inquire if there’s a backup plan in case fundraising falls short.


At EB5-USA, we only partner with projects that are fully compliant, transparently structured, and built to weather economic uncertainty. A failed project is not a failed future. With smart strategy, legal support, and a timely response, we can often recover both our immigration outcome and part (or all) of our capital.



Because your green card shouldn’t collapse with the project.

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