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When can a sponsor sell the property of an EB-5 project?

If a project has been funded by EB-5 investment, how long must the sponsor own the property for that project before it can be sold? Is there a certain timeframe where selling would affect the green cards of the investors?

Answers

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    Steffanie J Lewis

    Immigration Attorney
    Answered on

    There are a number of questions to be answered before a specific answer can be given. How was the enterprise that purchased the property organized? Was it a partnership? Was it a standard corporation or a limited liability corporation? Property can be sold and the profit retained by the enterprise as part of the enterprise’s business. When you invested, you likely became a partner or shareholder in the enterprise that purchased the property. You, as a participant in the policies of that enterprise will be putting that profit to use for the benefit of your enterprise. The requirement is that the enterprise in which you have invested must show that your investment has generated 10 full-time jobs so that your Form I-829 will be approved to remove the condition from your U.S. lawful permanent resident status. Therefore, property sale must continue to generate 10 full time jobs.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    EB-5 requires that the investor sustain his or her investment and create the required employment during the two-year period of conditional resident status. Therefore, the timing for selling off EB-5 project property will depend upon the structure of the EB-5 investment. If the property can be sold or otherwise disposed of in a manner that does not terminate the conditional green card holder's investment in the new commercial enterprise or negatively affect the job creation, then it might be possible. In most cases, however, the business plan, investment structure, and job creation should not experience any material change until all investors have had their conditions removed.

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    J Bruce Weinman

    Immigration Attorney
    Answered on

    By sponsor, do you mean regional center? There is no minimum time-frame in this respect, but the money cannot be returned to investors until after the removal of conditions has been approved.

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    Ed Beshara

    Immigration Attorney
    Answered on

    The project has to sustain or keep the investment funds in the project company and maintain the employment creation until the investor has obtained the approval of the I-829 petition to remove the conditions of the conditional permanent residency of the investor.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    I am not sure what you mean by a sponsor, as EB-5 business does not actually sponsor any of its investors. But, if you own a project/business that received EB-5 investments, you should not sell it until all the investors received their I-829 approvals.

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    John J Downey

    Immigration Attorney
    Answered on

    If by sponsor you mean investor, then there are no statutory bars to divesting the investment once you have removed the conditions and received you permanent residency. However, most investments require the capital to be left in for a few years beyond the two year requirement.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    The answer will depend on whether the EB-5 investors have approved I-829s. This should be discussed immediately with your immigration attorney.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    Generally, the property has to be retained until the green card has been processed at the I-829 level.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    There is a requirement for investors that their investment be sustained until they obtain full permanent residency before they can exit. In the real world, that translates to a period of about five years from the date of investment, and many projects allow for one or two one-year extensions just in case.

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