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What happens to the EB-5 visas if the regional center project goes bankrupt?

If a project that has EB-5 funding goes into a Chapter 11 bankruptcy, what happens to the visas that have already been issued under the program? Are they revoked? What happens to the regional center?

Answers

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    For those still in their conditional residency period, it may be difficult to get those conditions removed. For those who have full permanent residency, the only risk is not being able to get funds repaid, but the immigration benefit is already set.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    It really depends upon many factors, but in the event of EB-5 project bankruptcy, it is likely that any pending I-526 petitions will be denied, and it is likely that any conditional lawful permanent residents will not be able to remove the conditions on their green cards because they will have either (1) failed to sustain their investment in the new commercial enterprise or (2) failed to create the required number of full-time jobs. If the bankruptcy somehow results in a reorganization of the business and the investors sustain their capital investments, it might be possible for the business to reopen or continue to operate and still create the required full-time positions. In this event, the investors could still receive their permanent green cards.

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    Charles Foster

    Immigration Attorney
    Answered on

    The question as to what happens if the regional center project goes into bankruptcy all depends upon the timing. If your visa has already been issued and you are an unconditional permanent resident, then it will have no impact other than the potential loss of your investment. However, if the bankruptcy occurs prior to the visa being issued or prior to the removal of your conditional status two years after you have received your visa/lawful permanent residency on a conditional basis, it could adversely affect your eligibility to obtain your lawful permanent residency on an unconditional basis. The bankruptcy could obviously affect the ability of the enterprise to continue to operate and to employ the required amount of jobs throughout the required period of time.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    If the project goes bankrupt, but the jobs were created and the money spent, you can still get an approval. If the regional center closes down, this can be a problem. Presently there is remedial legislation being proposed that may provide other options; however, generally speaking, where the project fails and insufficient jobs are created, the case will likely be denied.

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    Peter Zhang

    Immigration Attorney
    Answered on

    The regional center's bankruptcy might not affect the visa issuance if the underlying project is still operating as planned.

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