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How can I add another EB-5 investor in my direct EB-5 project?

I am a direct EB-5 investor and my I-526 case is still pending. My friend heard about my business plan and was very interested in investing in my direct EB-5 project. He is an experienced entrepreneur and we are confident that the job creation requirements of 20 jobs could be met. How can I add him to the project? Since my I-526 is not even approved, when is the best time for him to be added? If I can add him to the project, what documentation of the project needs to be revised?

Answers

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    Unless you own petition is approved, you cannot bring other investor(s) under EB-5 program. Also, it appears your planned activity will involve sales of securities. If you eventually bring your friend onboard, both investors must create at least 20 jobs with your combined investment. It is advisable you should consult securities and EB-5 attorney.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    Having your friend invest in the business will require amendments to the current business plan requiring new capital expenditure plan and need/hiring timetable for additional 10 direct full-time positions. You should consult an EB-5 immigration attorney to review your case and opine whether it will impact it.

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    Since you plan to create twenty jobs, you could proceed with a direct EB-5 case for the second foreign national investor. In general, you will need to modify your business plan so that it is appropriate to include in the I-526 petition of the second EB-5 investor. You should consult with an immigration attorney concerning the strategy for proceeding with the I-526 petition of the second foreign national investor.

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    Charles Foster

    Immigration Attorney
    Answered on

    As long as you believe that the job creation is sufficient, there is no reason why you cannot add one or more additional direct EB-5 investors in your project, provided that when the EB-5 investors files his or her Form I-526 he or she will be able to demonstrate that your project met all the legal requirements and created an additional 10 jobs for U.S. workers. The best time to add is as soon as the prospective investor has made an affirmative decision to go forward with the investment. You would need the same documentation as you would have submitted with respect to the original I-526 petition.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Your friend can be added at any time, but make sure that there is a direct nexus or connection between his investment and the creation of 10 full-time positions (in addition to the 10 full-time positions your investment created in the NCE). You likely will need to provide an updated business plan to reflect the expanded project cost and hiring needs/timeline.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    You may be able to add an investor without jeopardizing your pending petition. However, your next steps should be analyzed to understand whether changing the budget and/or scope of business should be done prior to or after I-526 approval. Either way, the business plan will need to be updated to reflect 2 investors and so on.

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