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What is the rule on regional center jobs created prior to investment?

If I invest in a regional center in 2017 and the regional center then invests money in a construction project that has been going on since 2015, will jobs created prior to my participation in EB-5 be considered during the I-829 filing? Does USCIS have a rule for this?

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    BoBi Ahn

    Immigration Attorney
    Answered on

    For EB-5 purposes, each EB-5 investor must create at least 10 qualified jobs by his/her investment; therefore, jobs created prior to your investment by other investors may not count toward your required minimum job creation.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    It depends if there is a bridge loan and it was anticipated that your investment would be used to repay the loan. Here is the guidance: Since it is the commercial enterprise that creates the jobs, the developer or the principal of the new commercial enterprise, either directly or through a separate job-creating entity, may utilize interim, temporary or bridge financing - in the form of either debt or equity - prior to receipt of EB-5 capital. If the project commences based on the interim or bridge financing prior to the receipt of the EB-5 capital and subsequently replaces it with EB-5 capital, the new commercial enterprise may still receive credit for the job creation under the regulations. Generally, the replacement of bridge financing with EB-5 investor capital should have been contemplated prior to acquiring the original non-EB-5 financing. However, even if the EB-5 financing was not contemplated prior to acquiring the temporary financing, as long as the financing to be replaced was contemplated as short-term temporary financing which would be subsequently replaced, the infusion of EB-5 financing could still result in the creation of, and credit for, new jobs. For example, the non EB-5 financing originally contemplated to replace the temporary financing may no longer be available to the commercial enterprise as a result of changes in availability of traditional financing. Developers should not be precluded from using EB-5 capital as an alternative source to replace temporary financing simply because it was not contemplated prior to obtaining the bridge or temporary financing.

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    Charles Foster

    Immigration Attorney
    Answered on

    You are actually not investing in a regional center, but in a regional center job creating project. You can invest funds and the jobs for that particular project will count even though the jobs may have been created prior to your investment if structured properly.

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