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How can I secure my investment in an EB-5 regional center after the I-829 stage?

I know that EB-5 investments have to be at-risk during the two-year temporary permanent residency but an “insurance” policy after the filing of I-829 does not violate the “at-risk” rule. How can I make this part of my contract?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    It is not common for regional center projects to have such language and these insurance policies do not often make financial sense. EB-5 investments must be sustained and at-risk until the I-829 filing.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Insurance policies often do not make financial sense and certainly are not part of most established regional centers? project documentation. If you have that much concern about a regional center?s investment project that you feel you need to purchase expensive insurance that may not fully protect your investment anyway, then perhaps you should look for a different regional center project or consider not investing in EB-5 at all.

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    Marko Issever

    EB-5 Broker Dealer
    Answered on

    I am not sure it is worth making this arrangement in your subscription agreement. It could easily be used as a cause for rejection whether it is justified or not based on USCIS rules. It is true that most likely you should be entitled to pursue an insurance policy after filing of your I-829, but if USCIS asks evidence that your money is still at-risk in order to remove your conditions, you would have created a big problem for yourself. The law needs further clarification so that the rules that are based on the law do not leave room for multiple interpretations. When it comes to the implementation we are seeing many grey areas that could go either way. So, bottom line, wait until your I-829 is adjudicated and then apply to the fund for return of your capital. That is most likely your safest bet if you do not want to put obtaining your permanent green card at jeopardy.

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    Phuong Le

    Immigration Attorney
    Answered on

    You do not have to wait until the I-829 stage. An investor is not prohibited from taking out his or her own third party insurance policy to guard against risks and etc.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    The so-called insurance to assure the return of investment back to the investor is not a tested practice. Right now, USCIS is looking for any language that smacks of redemption guaranteed to deny cases. The only acceptable language that they expressed recently during the EB-5 stakeholders meeting was that the documents could state that investment could be returned when I-526 is denied. It is not clear if USCIS will have a problem with any redemption language for after the sustainment period. But since they stated in their policy that the investment does not have to be "at risk" anymore if the requisite jobs are created and sustainment period is passed, having an insurance policy to assure that the funds will be there to be returned after the sustainment period would be acceptable. However, the practitioners think that their policy is clear as mud. There is too much room for interpretation on what is and what is not acceptable, including procuring any insurance.

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    Charles Foster

    Immigration Attorney
    Answered on

    An EB-5 investment must be at-risk up until the time you are able to secure both your conditional permanent residency and then remove conditions. Afterward you are free to negotiate whatever additional arrangements that would be mutually acceptable between the parties and financially viable.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    USCIS recently clarified that the requirement for at-risk extends only to filing the I-829. As a matter of making it part of the contract, that is a matter between you and the EB-5 project/regional center.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    Not sure what you are referring to as far as "insurance policy" is concerned, but for EB-5 purposes invested funds must be at-risk, even after the I-829 is filed since USCIS may issue a request for additional evidence regarding funds being at-risk, etc.

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