MYTH BUSTERS

The rampant spread of EB5 in the last few years has lead to several presumptions by investors which are explicitly wrong. Some of the erroneous perceptions are also an outcome of the aggressive misselling by a sect of immigrant agents. This publication gives an insight on the most common myths which I have personally faced from some of the applicants:

• EB5 projects are government backed
• Investment limit can go up anytime soon, and it will keep going up
• Racism is inherent in deciding the outcome
• Monies can be borrowed from a friend and invested into a EB5 project
• Home loan is the easiest source of fund for an EB5 investment
• Any sort of secured loan would establish the requirement of source of fund, thus even a business loan which is secured on your plant and machinery or stock could be used for making an EB5 investment
• Children shouldn’t turn 21 before the provisional green card is received, else they wouldn’t be considered as dependents
• Taxation liability in USA doesn’t arise unless one physically &/or permanently shifts there
• Investment in certain kinds of projects would mean a faster EB5 approval
• Direct EB5 investment would lead to a better chance of getting the green card as against the regional centre program