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What if the EB-5 project I invest in fails?

I am studying to invest in one of a Regional Center''s projects. What if this project fails? I am told that by the time I can apply I-829, if the project fails or is going to fail, the RC can transfer my investment to another one of its project, and my greencard will be qualified for conditions removal. Is it true?

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    First, planning of failure raises some concern. Second, if the project was to fail, how would your funds be transferred if the funds were spent in the failed project? Please consult an experienced EB-5 immigration attorney who can assist you in minimizing immigration risks.

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    Lei Jiang

    Immigration Attorney
    Answered on

    You need to review the documents carefully to see if it is indeed as promised. Even you can transfer your investment to another project, there is no guarantee that the new project will meet the requirements.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Sounds like a recipe for major problems if the project is already talking about failure. I strongly suggest if the primary goal is a green card for yourself and family that you only consider very solid projects with a strong immigration track record of approvals of both I-526s and I-829s unless you are going to invest in your own project then you are investing in yourself and your skills.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    No, the I-526 is specifically tied to a particular project not a regional center. Thus, if one of the regional center''s projects fails and the requisite jobs are not created to remove the condition on I-829, then the best that the regional center could do is to transfer your investment into another project and do the I-526 again to buy you 2 more years.

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    H Glenn Fogle Jr

    Immigration Attorney
    Answered on

    The investment with a regional center is for a specific project, with a specific business entity that is to create a certain amount of jobs for that project with the investment funds specified for that project. Therefore, if the project fails and does not create the correct amount of jobs, the green card cannot be granted. I have never heard of a project failing and the investors able to switch to another project within the same RC and the I-821 able to be approved. Thus, it is highly important that due diligence on the RC and project be properly done. Please contact me directly if you have any other questions.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Maybe, maybe not. If the project fails, meaning that it is no longer in existence or it fails to create the required number of jobs within two years (or within a reasonable period of time thereafter), then it is unlikely your condition will be removed. If a regional center is promising to "transfer your investment" to another project if the first project fails, you might consider asking them how your funds will be transferred if they have been spent already in the failed project. The EB-5 law requires a real investment; and real investments necessarily involve financial risk. Your risk not only includes financial risk, but also immigration risk (your green card might not be approved or the condition might not be removed). That is why selecting an investment project is so important; you want to minimize risk (both financial and immigration) as much as possible, but it cannot be eliminated altogether.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    You should not invest in a project that is planning failure. And the sudden switch to another project should be questioned. You should review this with your attorney immediately before you have made any investment. Any project you select should be reviewed by an attorney holding a General Securities Representative License.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    If the I-526 has been approved, you can lose your money, and your green card. It may now be possible to transfer projects, after the I-526 has been approved.

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