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How many investors can an exemplar EB-5 project have? Is there a cap?

If an exemplar EB-5 project (filed on I-924) shows 60 investors contributing $30 million and generating approximately 1800 jobs, and 60 investors have invested in the project, can the regional center still seek out more investors for the project?

Answers

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    A project is usually limited to the raise they originally plan for. If the plan was 60 investors and all 60 are subscribed, the raise is complete.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    That would depend on the Private Placement Memorandum. You may also want to find out if adding additional investors is not considered a material change due to project needs and does not fundamentally change or alter exemplar approval.

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    Charles Foster

    Immigration Attorney
    Answered on

    There is no cap on the number of investors. The number of investors is determined by the size of the project. The number of investors would also be limited by the number of jobs created and the dollar amount necessary to be raised for the project, as disclosed in the Private Placement Memorandum.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    This depends on what was stated in the PPM. You would appear to have to get consent from prior investors. Also, you will need to prove to USCIS this is not a material change that would undermine your exemplar approval and perhaps even imperil the already filed cases.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    There are no fixed rules on this issue. Whether an exemplar project may still raise enough funds or not depends on a host of reasons, including the scope of the project, the regional center''s decision at pre-filing and post-filings and a number of other contingencies. Prior to joining an on-going project, read the offering documents and consult an EB-5 attorney who may assist in the due diligence process to ensure all bases are covered.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    I would recommend you consult with your investment immigration attorney on this question as the potential variables are significant and would directly impact any potential answer to your question.

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    Phuong Le

    Immigration Attorney
    Answered on

    Yes. They can either amend the initial offering or issue a second offering to raise additional funds with that job offer. Provided that some other considerations are met (such as approvals from the previous EB-5 investors, reasonable explanation of additional uses of EB-5 funds, etc.), this should be possible.

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