How will it impact an EB-5 applicant if the business they invested in fails due to Covid?

It is going to be tough going forward to justify the existence of the business or proving that it meets the EB-5 requirements. Thus, if the business goes out of business, the EB-5 applicant would likely not get an approved permanent EB-5.

Though this is a once in a generation (several generations?) global crisis, EB5 investments are subject to risk. Redeploying the investment into something entirely new may require a brand new I-526 filing.

If you are at the I-526 stage then any material change can impact you, but if you are at the I-829 stage then the issue will be whether the jobs were created and the investment sustained.

You need to know what your rights are with respect to that project in terms of getting any funds back or are you prepared to redeploy in another project or looking for options other than EB-5. What stage of the I-526/I-829 process are you in?

That I do not know.

It depends on when the business fails; if the failure and closure of the business occurs during the I-526 stage, then it will be difficult for the applicant to gain any immigration benefits from the investment. If the EB-5 investor was granted a conditional green card and sustained his/her investment during the conditional period, and the NCE created the required number of full-time positions for U.S. workers, it is possible for the I-829 to be approved and the conditions removed, notwithstanding the closure of the business. Timing is everything. The EB-5 investor must file the I-829 petition to remove conditions on time and document fully what happened with the business.