Questions and Answers > EB-5 Investments

Can I create a sub company in a different industry to maintain my EB-5 workforce while waiting for my I-829 decision?

My current business, the one we used to file for I-526 and I-829, is failing. However, I’m thinking of creating a division or sub company to continue keeping the 10 people work force. The new division or a sub company is not in the same industry as the one that we filed. Will this create trouble for the I-829 later on? If it is ok to do so, this will allow me to maintain the labor force of 10 people, able to make a living while waiting for a decision on I-829 for EB-5. Are there any other alternatives?

Answers

• Salvatore Picataggio

  Immigration Attorney

  Answered on March 30, 2021

  With the I-829 filed, your obligations for investment and job creation have ended.

• Fredrick W Voigtmann

  Immigration Attorney

  Answered on March 29, 2021

  Since you have passed the end of your conditional period, if you sustained your investment throughout the entire sustain/conditional period and created the required jobs within that period, then there may not be any additional evidence needed in order to get the condition removed. Even if USCIS issues a Request for Evidence in the future, it really should be focused only on the conditional period, not what happened after. Should you choose to keep your business going until the I-829 is approved, any subsidiary must be wholly-owned by your NCE to keep it within the USCIS definition of "new commercial enterprise."

• Bernard P Wolfsdorf

  Immigration Attorney

  Answered on March 29, 2021

  If you have sustained your investment and created the jobs according to the business plan, you may already be in the safe zone. Starting a new business and changing the business may be permissible but it may not even be necessary in your case.

• Dale Schwartz

  Immigration Attorney

  Answered on March 29, 2021

  Very complicated question. You have at least $500,000 at stake. I do not know any decent lawyer who is willing to give you an opinion which, if they turn out to be wrong, could make them liable for a huge malpractice award. Have you consulted with your own EB-5 lawyer?

• Rani Emandi

  Immigration Attorney

  Answered on March 26, 2021

  There is no simple answer, it requires assessment of the basis for your I-526 approval and the nature of the business.

• Lynne Feldman

  Immigration Attorney

  Answered on March 26, 2021

  The answer is complicated and involves the redeployment of funds rule and could be considered a material change.

• Karen-Lee Pollak

  Immigration Attorney

  Answered on March 26, 2021

  The 10 people should continue working for the company that is the subject of the investment and it should continue to operate until your I-829 is approved.