The 5 Items Every EB-5 Investor Must Verify Before Selecting A Project

EB-5 projects are almost always presented with confidence. Strong job creation, conservative structures, reliable exits, experienced sponsors. On paper, everything sounds reassuring.

But EB-5 is not a program where good intentions are enough. Investors are committing a substantial amount of capital and tying it directly to their immigration outcome. That is why experienced EB-5 investors follow one core principle: trust what you are told, but verify what is documented.

Understanding where to look and what to confirm can help investors avoid risks that are not obvious during initial conversations.

Why Verification Matters More Than Ever

Under the EB-5 Reform and Integrity Act, projects face greater scrutiny, higher compliance requirements, and increased transparency obligations. At the same time, investors are putting more capital at risk than ever before.

This combination makes documentation, structure, and track record far more important than sales presentations or verbal assurances. If a claim cannot be supported clearly in the offering documents, it should not be relied upon.

1. Sponsor Track Record: Beyond the Marketing Narrative

One of the first things investors should verify is the experience of the project sponsor.

Key questions include:

• Has the sponsor successfully completed similar projects?

• Have they previously repaid investors or senior lenders?

• How much of their own capital is invested alongside EB-5 funds?

A sponsor with meaningful equity in the project is financially aligned with EB-5 investors. Conversely, a sponsor with minimal capital at risk may not share the same downside exposure. Track record and alignment of interest matter far more than polished marketing materials.

2. Capital Stack: Where Does EB-5 Actually Sit?

Many EB-5 risks stem from misunderstandings about capital structure.

Investors should confirm:

• Whether EB-5 capital is in a senior, mezzanine, or subordinate position

• What collateral, if any, secures the EB-5 investment

• Who gets paid first if the project underperforms

These details should be clearly stated in the loan agreement, security documents, and PPM. If the explanation feels overly complicated or inconsistent across documents, that deserves closer attention. Capital position is one of the most direct indicators of downside risk.

How do I know if the project sponsor is financially strong, not just experienced?

Experience and financial strength are not the same thing. A sponsor may have completed projects before but still be thinly capitalized. Investors should look for evidence of real equity invested into the project, past borrowing and repayment history, and financial statements that show the sponsor has the resources to weather unexpected problems. A sponsor who has meaningful capital at risk alongside EB-5 investors is far more aligned with investor outcomes.

3. Job Creation: Reasonable Projections vs. Aggressive Assumptions

Job creation is not just a requirement, it is the foundation of EB-5 eligibility.

Investors should review:

• The job creation methodology being used

• Whether projections rely on realistic construction timelines and operating assumptions

• How much job cushion exists beyond the minimum required

Projects with thin margins for job creation leave little room for delays or cost overruns. Conservative assumptions and a meaningful job buffer provide far more security for investors.

What does a “job cushion” really mean, and why does it matter?

A job cushion refers to how many more jobs the project is projected to create beyond the minimum required for investors. A thin margin leaves no room for delays, cost overruns, or changes in project scope. A meaningful cushion gives investors protection if the project timeline shifts or construction costs change. Conservative job creation projections are often a sign of a well-prepared filing.

4. Exit Strategy: Clear, Realistic, and Documented

Every EB-5 project needs a credible path to repayment, but not all exit strategies are created equal.

Investors should understand:

• How EB-5 capital is expected to be repaid (refinancing, sale, cash flow, or other means)

• Whether assumptions are tied to market realities

• Whether the sponsor has executed similar exits before

Exit strategies should be realistic, clearly explained, and supported by precedent, not dependent on ideal market conditions or optimistic projections.

5. The Role of the Regional Center

The regional center is not just a facilitator; it plays a critical compliance and oversight role.

Investors should verify:

• The regional center’s history under current EB-5 regulations

• Experience with I-956F filings and investor petitions

• Transparency in reporting and investor communications

• Their I-829 approval rating across all projects

A regional center with a strong compliance record and operational discipline adds an additional layer of confidence to any project.

What This Looks Like in Practice

A well-structured EB-5 project should welcome scrutiny. Sponsors and regional centers should be able to point investors directly to documentation that supports every major claim being made.

If answers rely heavily on verbal explanations without written support, or if questions are discouraged, that is often a signal to slow down and reassess.

Bottom Line

EB-5 investing is not about finding the most attractive story. It is about confirming that the structure, documentation, and track record support the outcome being promised.

Investors who take the time to verify key elements of sponsor strength, capital stack position, job creation methodology, and exit strategy place themselves in a far stronger position both financially and from an immigration standpoint.

In EB-5, confidence should come from clarity, not reassurance.

Because your Green Card Shouldn't Take a Lifetime.