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How far in advance of development can a project seek EB-5 funding?

I have a Seattle downtown project in 2016. I need $5 million for acquisition of the property. I will develop the site and sell the top stories of a mid rise condo to EB-5 investors. Can I promote this project for EB-5 funding for 2016 investments during 2015? How far in advance of development can a project seek EB-5 funding?

Answers

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    Ed Beshara

    Immigration Attorney
    Answered on

    Only an actual EB-5 project should be offered to the potential investors. An actual construction project should have all incenses and permits before the offering is made. The potential investors may sign the offering documents, transfer their investment funds to escrow and file their I-526 petitions before construction starts. Please note, if EB-5 funds are used to purchase the land then these funds cannot lead to the required job count.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    There is no rule or restriction regarding when you can begin to seek EB-5 funding or promote an EB-5 project, but selling condos to EB-5 investors will not meet the immigration law requirements because their investments will not be at risk in an active, for-profit business. Also, it is not clear how your project would result in any new job creation.

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    John J Downey

    Immigration Attorney
    Answered on

    You may promote the project now. You should have all the documentation properly prepared by your attorneys and make sure full disclosure procedures are followed. There is no specific time frame, but if you want investors, you should have all your documentation ready to present to them.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Land acquisition may not be an acceptable cost for EB-5 purposes, but it does not hurt to begin developing your EB-5 infrastructure and documentation now. It may take several months or more to develop the structure, draft documents, and market the project to investors.

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    Robert Cornish

    Securities Attorney
    Answered on

    My understanding is that you can have close based on funds raised, but you should consult with EB-5 counsel to confirm how your timing should be drafted and handled. It certainly is the norm in the private equity world.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    EB-5 funding must be used for a new business enterprise that will create 10+ full-time, permanent jobs per investor. USCIS prefers to approve the I-526 for the shovel-ready projects. Thus, using EB-5 funding to purchase the land where the development will take place without any construction and other permitting in place would be frowned upon, as the EB-5 funds are not being used for actual creation of jobs.

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