A loan model EB-5 regional center project (healthcare facility) has spent all of the EB-5 money, but only half of the construction is completed, and there is no more money to complete it. The project intends to file for bankruptcy. According to the job creation model, half of the job creation will be based on construction, and half of of the job creation will be based on post-completion business operation. If the JCE goes bankrupt, the investment fund is partially returned to the investors. What will the impact be to the EB-5 investors whose I-829s are pending? What will the impact be to the investors who have conditional green cards, but who have not filed the I-829 yet?
Answers
Ed Beshara
Find an EB-5 Visa Lawyer: Immigration AttorneyAn experienced EB-5 attorney will be able to advise you on the questions you presented. At the I-829 filing, if the jobs were created and the investment funds were sustained, then the investors should have their I-829 approved and obtain their unconditional permanent residency. If the investment funds are sustained and jobs are created, but the business is failing, then the investors can still file their I-829 petitions, and obtain their unconditional permanent residency.
Jinhee Wilde
Find an EB-5 Visa Lawyer: Immigration AttorneyThis is why a new venture/business that has not done an EB-5 project may be too risky to chance. If the requisite jobs are not created and the business files bankruptcy and will not be completed to operate, then the I-829 will not be approved. The best route you could take is to get your investment back and reinvest in another project and file the I-526 immediately while your I-829 is pending. Since you already have been hurt by an unproven EB-5 business, it will be very important for you to consult with an experienced EB-5 attorney to time your actions and carefully choose the next business in which you should invest.
Robert West
Find an EB-5 Visa Lawyer: Immigration AttorneyMost likely no approval. You should discuss with your lawyer and financial adviser immediately. Maybe you can get into a different project, different center. At last count there are 786 regional centers but only a handful have been around five-plus years to see what their actual track record is.
John J Downey
Find an EB-5 Visa Lawyer: Immigration AttorneyThe situation is not good. A bankruptcy can negate the EB-5 applications. I would suggest that the investors get together and try to find another developer to come in and rescue the project; the new developer would be considered as a successor in interest and could be accepted by USCIS. It would not be considered as a major change of the initial business plan.
Bernard P Wolfsdorf
Find an EB-5 Visa Lawyer: Immigration AttorneyIn the past, some investors have been able to get I-829s approved where the jobs were created before bankruptcy. Some of the earlier filed cases may get approved. Others would be advised to file new I-526 applications based on new investments.
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