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What are the term limits on EB-5 funding?

If a foreign investor puts $1 million into mezzanine debt for an EB-5 project, is there a term limit on how long he or she has to retain that position? Can he or she sell it and reinvest?

Answers

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    Ed Beshara

    Immigration Attorney
    Answered on

    Based upon EB-5 regulations and policies, the EB-5 investor has to sustain the investment in and cannot exit the EB-5 project until the EB-5 investor's I-829 petition is approved.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    EB-5 investments must be "sustained" in the new commercial enterprise until their immigration process is complete. USCIS has introduced the concept of redeployment of funds, but not a lot of practice guidance has been provided.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    The EB-5 rules require that the full amount of invested capital remain at risk for the conditional period of lawful permanent residence (which is two years). USCIS' current interpretation of this rule is that the capital must remain at risk until the investor's condition has been removed. For most individuals, this period will be longer than two years and for EB-5 investors born in China who are making their EB-5 investments now, it could potentially be much longer (six, seven, eight years or longer).

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    This may vary by project, but the investment must be sustained through until the I-829 stage, which realistically will be about 4-5 years, except for Chinese, where the waiting line is longer.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    Generally, there is no standard term. As a matter of fact, the only term that you will have to deal with is the term set in your investment agreement. Also, whether you can sell or reinvest depends on the exit clause in your investment agreement.

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    Raymond Lahoud

    Immigration Attorney
    Answered on

    You would have to retain it until the I-829 is approved and the conditions on your lawful permanent residence are removed.

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    Peter Zhang

    Immigration Attorney
    Answered on

    There are no specific term limits. The requirement is that it must create the requisite number of jobs by the time you remove the conditions of your green card.

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