How will it impact an EB-5 applicant if the business they invested in fails due to Covid? - EB5Investors.com

How will it impact an EB-5 applicant if the business they invested in fails due to Covid?

If an EB-5 applicant invested in a business that shutters due to Covid-19, how should they move forward? What alternatives do they have?

Answers

A Olusanjo Omoniyi

A Olusanjo Omoniyi

Immigration Attorneys
Answered on

It is going to be tough going forward to justify the existence of the business or proving that it meets the EB-5 requirements. Thus, if the business goes out of business, the EB-5 applicant would likely not get an approved permanent EB-5.

Salvatore Picataggio

Salvatore Picataggio

Immigration Attorneys
Answered on

Though this is a once in a generation (several generations?) global crisis, EB5 investments are subject to risk. Redeploying the investment into something entirely new may require a brand new I-526 filing.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

Immigration Attorneys
Answered on

If you are at the I-526 stage then any material change can impact you, but if you are at the I-829 stage then the issue will be whether the jobs were created and the investment sustained.

Lynne Feldman

Lynne Feldman

Immigration Attorneys
Answered on

You need to know what your rights are with respect to that project in terms of getting any funds back or are you prepared to redeploy in another project or looking for options other than EB-5. What stage of the I-526/I-829 process are you in?

Fredrick W Voigtmann

Fredrick W Voigtmann

Immigration Attorneys
Answered on

It depends on when the business fails; if the failure and closure of the business occurs during the I-526 stage, then it will be difficult for the applicant to gain any immigration benefits from the investment. If the EB-5 investor was granted a conditional green card and sustained his/her investment during the conditional period, and the NCE created the required number of full-time positions for U.S. workers, it is possible for the I-829 to be approved and the conditions removed, notwithstanding the closure of the business. Timing is everything. The EB-5 investor must file the I-829 petition to remove conditions on time and document fully what happened with the business.

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