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

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. And while most EB-5 projects complete successfully, the reality is that 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 you can take to protect your immigration status and recover your 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 your I-526E petition hasn’t been filed or approved yet, your investment may still be in escrow. Many projects offer a refund clause in case of petition denial or incomplete fundraising. If your petition is pending and the project collapses, your immigration attorney can help you 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 your I-526E is approved and you’re in conditional residency, USCIS will evaluate whether the job creation requirement was satisfied. If enough jobs were created (even temporarily), your I-829 approval may still be possible. You may also be able to “redeploy” your capital into a new project.

✔ After I-829 Approval

If your permanent green card is already approved, your immigration status is safe. However, the return of your $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 your petition or the NCE fails to raise the required funds. Review your Limited Partnership Agreement and PPM to understand your rights.

Redeployment

Under the Reform and Integrity Act (RIA), your investment can be redeployed into a new EB-5 project if the original one fails. You must act within 180 days of learning of the failure to preserve your 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, you may have grounds to file civil claims. Some investors have recovered partial capital through lawsuits, SEC actions, or insurance claims. Seek legal counsel with experience in EB-5 disputes.

3. Immigration Protections You May Still Have

Even if the project fails, you 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, you may still qualify for I-829 approval.

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

• Child protection: If your dependent child is aging out, USCIS may allow you 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. But 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 the investor acts quickly and works with the right professionals.

5. Protect Yourself Moving Forward

While project failure is rare, you can take steps to protect yourself before you invest:

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

·         Ask about job creation buffers—130%+ is ideal

·         Make sure funds are properly escrowed or secured

·         Confirm that the project is fully RIA-compliant

·         Ask 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, investors can often recover both their immigration outcome and part (or all) of their capital.

📩 contact@ebfiveusa.com 🌐 www.ebfiveusa.com

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