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How would a project defaulting on bank loans influence my EB-5 petition?

What happens if the project that I invest in is in default on the bank loan and they are unable to find new financing? I know they have created the necessary amount of jobs to support the EB-5 application for all investors. How will this situation influence my EB-5 petition?

Answers

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    If the default on the loan does not affect your sustainment of your investment in the new commercial enterprise AND it does not affect the required job creation, you might still be able to receive a permanent green card. If a material change occurs prior to you receiving your conditional green card, or if you not able to demonstrate sustainment or job creation due to the default, then your case likely would be denied.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    The default would affect the EB-5 Petitions if the project financing and solvency were in jeopardy by the default resulting in either inability to meet the job creation requirement or to stay in business.

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    Charles Foster

    Immigration Attorney
    Answered on

    Obviously, a default on the bank loan by your project is not a good thing. However, it may still be possible for you to obtain your conditional Permanent Residency and even remove conditions, provided that the funds were fully invested and the jobs were created. Thus, it is technically possible for you to still achieve your long-term goal of receiving your Lawful Permanent Residency without conditions even though your investment in the project may be in jeopardy.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    The default is a troubling sign that the developer may not be able to complete the project either on time or even at all. Consult an attorney to investigate the cause of the unfortunate development and see how if working with the developer and regional center the project can be saved. Otherwise, this is an indication that the investment may fail and lost or perhaps an indication of something bigger developing. including but not limited to, how the regional center in question is being administered. There may be a need for further legal action.

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    Ed Beshara

    Immigration Attorney
    Answered on

    You may be successful in obtaining your conditional permanent residency. However, two years after this approval you will need to file another petition to remove the conditions. This petition will show how your investment has been sustained and the required jobs were created. You will need an experienced team of professionals to assist and advise you as to whether this business has failed permanently or is there a possibility of the business being saved.

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    If the required number of jobs are created for all investors, then this situation will not affect your I-829 petition. However, this situation may affect whether you receive your principal back.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    The issue for EB-5 is the job creation. If the developer defaulted on the loan and could not complete the construction, which was the bases for counting the jobs, then you may have a problem. If the jobs are truly all created and the loan default to the bank leads to foreclosure, the immigration benefit may be intact but the repayment of your principal investment amount may be in jeopardy. You should consult with your EB-5 lawyer to see what ramification of the default means to you. Hopefully, your lawyer is an independent lawyer whose job is to look out for your interest and not a lawyer appointed by the regional center or agents of the developer.

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