I have heard that sales or transfers of Regional Centers have been rejected or have gotten RFEs. In March of 2013 someone asked a question on this website (http://www.eb5investors.com/qa/can-i-purchase-an-eb5-regional-center) and a number of lawyers said yes, but some said no. I am guessing that the USCIS may be schizophrenic in their decision making. Has anyone done a deal like this recently? If so, would your firm be open to doing a sale or transfer?
USCIS''s main concern is that the sale of the regional center will not alter the project and that new management will successfully operate the regional center. An amendment will be required by USCIS when there is a change of management. An issuance of a RFE is common.
USCIS will want to see that the buyer has the credibility to run an RC successfully. An RFE will likely be issued. To structure the sale, some ways are better than others. Please feel free to contact us.
This can actually be a complicated process and we have seen deals go south when the RC principal unilaterally makes the sale without consulting immigration counsel. There are some nuanced issues if the transfer involves just the sale of stock or physical assets. This nuance could determine whether an actual amendment would need to be filed with USCIS. We have dealt with a number of these cases (and currently are in the middle of a fairly complicated one). We would be happy to offer you a complimentary consult to discuss further.
USCIS is going to be most concerned about the project moving forward in accordance with the business plan. The business plan includes the management structure. A sale may be possible if as few variables as possible will change, there are of course many different types of sales. We would be happy to help with the immigration issues but should use a mergers and acquisition firm for the business transfer issues and we can work with them. If USCIS believes it is a material change then a new I-526 would need to be filed.
Sale of regional centers are permitted, however, the sale is a stock sale and not an asset sale. In recent approvals the USCIS has made it clear that a change in management will require an amendment, as such a RFE can be issued. There are different ways to approach this matter. We would be happy to assist.
Our Law Firm has a client who will be interested in buying your Regional Center in Florida under the right circumstances. If there is a change in ownership of a Regional Center, you will need to file an I-924 application for USCIS approval. However, while the USCIS is processing the I-924 which could be very lengthy, there are legal ways to still operate the Regional Center until the I-924 is approved.
You may sell your regional center. USCIS cannot prevent such a sale, which would be interference with a lawful commercial transaction.
USCIS is not always consistent in their rulings and policies, but if you want to operate your own regional center, it all depends. If you''re looking to obtain multiple projects or just associate your current project with an existing regional center, consulting with and retaining an experienced EB-5 attorney (like the attorneys at our law firm) can help you develop an approvable strategy.
Almost everything related to EB-5 gets an RFE these days. It is nothing to be afraid of or surprised at. As long as everything is properly documented and in compliance with the regulations, there is no reason why the sale/transfer of a regional center should not be accepted.
In December 2012 we sold a RC. Note: the entity must be sold, not the license.
