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What happens to the 10 jobs created after one EB-5 investor exits the business?

A direct EB-5 project had three investors and one of them exited the business after getting his/her permanent residency status. The exiting investor took his money with him/her. There are only two investors left and 30 employees. If the business cannot get new capital, 10 of the 30 employees will be unemployed. Can this direct EB-5 project get a replacement EB-5 investor to preserve those 10 jobs? Or must it first fire the 10 employees, get a new EB-5 Investor, and then create 10 new jobs?

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    Julia Roussinova

    Immigration Attorney
    Answered on

    Generally, investment capital may be returned after the I-829 is approved subject to the terms of the exit strategy in accordance with an entity's operating agreement, purchase and sale agreement, etc. Otherwise, an exiting investor is responsible for creation of at least 10 full-time jobs aside from the other two investors. Job preservation applies to a "troubled" business scenario only.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Each investor is responsible for creating jobs. Preserving jobs created by another investor would require the business being classified as "troubled" which in this context may not be possible.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    It is critical to show the investment created the jobs. You need to show the nexus between investment and job creation. Job preservation only works in the troubled business context at least 20 percent losses.

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