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What will happen if not enough investors subscribe to a regional center project?

How will my EB-5 application (I-526 petition) be affected if not enough EB-5 capital is raised for a regional center project?

Answers

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    Oliver Huiyue Qiu

    Immigration Attorney
    Answered on

    If not enough investors or insufficient capital, the most obvious consequence is the project is unable to take off for fear of running out of funds down the road. Or if the project can scale back its original plan, it may still have time to obtain a new job creation calculation. The revised project plan may still be able to proceed. If this is a regional center affiliated project, another exemplar I-526 might have to be filed to ensure USCIS approves the revised plan.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    The issue will be is the project still viable and could proceed without full number of investors. If yes, I would think the fewer number of investors could help them reach the jobs number more easily. However, if the project is dependent on EB-5 investors for its viability, then not having enough investors could bring down the whole project.

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    Ian E Scott

    Immigration Attorney
    Answered on

    If an EB-5 project sets out to get a particular number of investors, they may require that number in order to make the project a success. If they do not get the desired number and move forward with the project, this may not impact you if the regional center can still create the required number of full-time jobs. This is a risk though as, if the project does not get the funds it needs to be successful, they may not be able to create the jobs, and if they do not create the jobs, you will not be able to keep your green card.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Your securities offering documentation (private placement memo, subscription agreement, etc.) will describe the timelines and requirements for subscriptions. If these are not met, offerings may be terminated or you may be able to exercise rescission rights. Please consult with an experienced EB-5 attorney who will work closely with securities attorneys or investment advisers to assist you.

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    Shenila A Momin

    Immigration Attorney
    Answered on

    In such event, the petition will be denied depending on what stage the application is in. If you have received a conditional residency then it will affect getting the permanent residency.

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    Stephen Berman

    Immigration Attorney
    Answered on

    If your project ultimately does not create 10 jobs, then your application for removal of condition would be denied.

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