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What happens if a project is fully completed before I-526 approval?

I am interested in setting up a regional center and using EB-5 to fund a 17-unit subdivision (single family house) development. It may take 2-3 years to complete all the construction work and sell all the houses. Is that OK if the project is completed even before I-526 approval? To keep the funds at risk, do I need to reinvest them in another project? In that case, do I need to prepare all new economic analyses and legal documents for the new project?

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    I understand this response comes well after the question was posed, but redeployment in a similar project may be allowed under current policy to maintain the at-risk requirement. This is still a very new policy.

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    Charles Foster

    Immigration Attorney
    Answered on

    Your questions raise a number of technical issues. The funds must be at risk throughout the time it takes to complete the EB-5 project, but more significantly during the time the foreign investor remains in conditional status. If in fact you complete your project even before the I-526 approval, at the very least there could be a serious question raised at the time each investor files his petition to remove conditional status on Form I-829. So yes, you may need to reinvest your funds in a similar project within the scope of your original business plan. Yes, you may need to file new documentation and even likely an amendment. Clearly, you should consult with experienced immigration counsel with significant experience in representing EB-5 projects and regional centers.

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    Irina Rostova

    Immigration Attorney
    Answered on

    The projects may be completed before an I-526 approval, but you will need to keep the funds "at risk." If you chose to redeploy the funds into a new project, you will not have to show job creation in the new project.

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