Is an EB-5 regional center allowed to allocate investor funds prior to the full use of funds to generate jobs? For example, could the regional center invest the funds to trade stocks in NASDAQ or AMEX and use the funds to trade stock options to optimize the return of investments?
Answers
Julia Roussinova
Immigration AttorneysThe primary focus should be job creating activities.
Fredrick W Voigtmann
Immigration AttorneysTo qualify for EB-5, the investment capital must be at risk in a new commercial enterprise for the purpose of job creation. Stock trading/investment likely would not demonstrate a sufficient nexus between the EB-5 investor's commitment of capital to the new commercial enterprise and job creation.
Salvatore Picataggio
Immigration AttorneysThe proper use of funds would be focused on the job creating business activities of the project or development. USCIS is working on guidance for the redeployment of funds after the job creating activities are ended/before the investor reaches the end of their conditional permanent residency period.
John J Downey
Immigration AttorneysVery doubtful. If for some reason the regional center had submitted this idea with their business plan and USCIS accepted it, then they could.
Bernard P Wolfsdorf
Immigration Attorneys
Raymond Lahoud
Immigration AttorneysThe funds that are invested are held in escrow for the purpose of the projects designated for the investment. The money may not be played around with, using other investments, such as stocks or the like.
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