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When are EB-5 funds injected into a project?

When is EB-5 money injected into a project? At the end of the project or throughout the construction of the project?

Answers

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    EB-5 funds must be placed at risk in the new commercial enterprise (NCE) prior to the I-526 petition. In many regional center projects, the investor makes an equity investment in the NCE, which then lends the funds to the job creating entity (JCE). The business plan and the agreements between the entities will determine when the funds are injected into (loaned to or spent by) the JCE. The funds must be with the NCE (or in the NCE's escrow account) prior to I-526 submission to USCIS.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    This will depend on the terms of a project. You should review a project's offering documentation, such as subscription agreement, partnership agreement, loan documents, etc. Most projects these days have early funding provisions due to significant delays in I-526 processing times.

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    Charles Foster

    Immigration Attorney
    Answered on

    The EB-5 money is transferred to the job creating entity or project under the terms and conditions of the project itself that is being marketed by the EB-5 regional center. Normally the funds are invested at the beginning and must be fully invested at the beginning of the project.

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    John J Downey

    Immigration Attorney
    Answered on

    This all depends on your agreement with the project/regional center regarding the nature of the project.

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    Kyle Barella

    Immigration Attorney
    Answered on

    The answer to this question depends on the individual EB-5 project one has invested in. For example, some projects keep the investor's money in the project's escrow account until the I-526 petition is approved. Other projects may release all or a portion of the money before such time. Please contact a qualified EB-5 attorney for additional information.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    It really depends on how the deal is structured. Most deals today have early release provisions so the money is going into construction fairly early in the process, although most will have holdback provisions to cover a certain percent of the investors.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Before the I-526 (initial petition) is filed with USCIS, in most cases.

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    Ying Lu

    Immigration Attorney
    Answered on

    It depends. If the EB-5 capital is used to replace a bridge loan, it can be injected at any time. In a direct EB-5 project, it is very likely that the money should be expended during the process of construction or any other job creation activity because the money has to be used to create the jobs as per the requirement of the law.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Each project will be different. Please review the subscription and limited partnership agreements as well as the loan documents. Usually, the sooner the EB-5 funds are invested into the project, the sooner those funds could be utilized to create jobs.

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