What will happen if a regional center project gets denied?

I-526 petitions must be submitted for a project sponsored by an existing regional center, but the project itself does not need pre-approval before I-526s are filed. The first I-526 approval will count as a "project approval." If you file an I-526 with a regional center that is pending approval, it will be either held until the regional center is approved or possibly denied.

The scenario you painted does not happen quite often. In fact, it is advisable that such a scenario should be prevented if possible by all means. However, if it happens, the regional center in question has to modify its projected plans and resubmit - otherwise it risks immense loss for the investors and possible termination of its status. Advisably, consult an EB-5 attorney prior to getting involved in this type of scenario.

It''s possible, but unlikely that USCIS will allow it. The best thing to do is have a professional perform "due diligence" on any project before you invest.

If a regional center's project, known as an exemplar, is denied, it would make it difficult to have individual I-526 petitions of the EB-5 investor approved. Yes, a regional center may start construction on a project without approval, but there is some risk. Yes, if denied, the regional center could refile or file an amendment, but it would put in doubt the viability of the project.

It is possible to start work on a project and still get approval, if structured correctly. There is something called an exemplar, but they can take about a year, so many good projects do not have exemplars. If the exemplar gets denied, it might be able to amend the petitions to ensure, but there is a possibility that the applicant may have to refile. Generally, however, a petition must meet eligibility at the time of filing, so refiling can be difficult. It is very important to make sure it is approvable at the time of filing.

If a regional center's project exemplar is denied then the project may be able to resubmit the exemplar. More information about the reasons for the denial would need to be provided to see what the deficiencies were. Otherwise, an exemplar approval is not required under current U.S. law or USCIS rules and policies. Hence, a project may be able to commence both construction and an EB-5 capital raise through its affiliation with a designated regional center USCIS specifically naming the project in an I-924 exemplar application.

An EB-5 project may proceed with construction without having any approval from USCIS. If the project needs to make a material change to the business plan or the EB-5 filing in any way, it will depend upon when such change occurs. If the material change occurs after the EB-5 investor receives his or her conditional lawful permanent resident status, then no refiling is required. If the material change occurs before the investor receives his or her conditional lawful permanent resident status, then the investor would have to resubmit his or her I-526 petition.