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What happens to the EB-5 investors if the new commercial enterprise is sold to another company?

My I-526 was approved and I am waiting for my visa interview. The regional center I worked with plans to sell the new commercial enterprise to another company. Will this lead to any risks to my I-829 application and the return of funds in the future?

Answers

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    Until you have landed with a conditional green card, a material change could impact your eligibility. However, a sale alone should not result in material change provided the requisite number of jobs are created.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    If changes in business activities or ownership are contemplated with the sale and it happens before you receive conditional lawful permanent resident status, then it may affect you significantly due to material change. Have an experienced immigration attorney review specifics and have your interests represented in connection with the sale.

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    Hassan Elkhalil

    Immigration Attorney
    Answered on

    Normally, the new entity, the buyer, will replace the new entity and your application should continue as normal. If not, both entities may be inviting unnecessary headache!

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    It should not lead to any problem. However, the regional center still bears the responsibility that your investment provided at least 10 jobs before the I-829 is filed and that all other requirements for EB-5 requirements are met. Also, the sale should not jeopardize the return of your investment. Advisably, make sure your attorney monitors all the steps being taken by this regional center.

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    Marko Issever

    EB-5 Broker Dealer
    Answered on

    Because of the stage you are in now, it might very well affect you. Let me explain why. Your I-526 was just approved. You still need your conditional permanent residency approved. Once that is approved you need to be able to have at least 10 newly created full-time positions be credited to you. All of that has to happen before the end of the sustainment period defined as the two-year conditional permanent residency period. If the sale of the NCE takes place after you file for the I-829 then it will most likely be a non-event, provided that all the required jobs were created by then. But if the sale is contemplated and executed upon before you reach the I-829 filing stage and the new owner does not care of protecting your interests, then you could face issues. The required number of full-time positions might never be created. In either of the scenarios we covered, if the regional center has not paid back the capital yet, in that case, any misuse of the NCE could have detrimental effects in terms of your not being able to collect your investment as well.

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    Barbara Suri

    Immigration Attorney
    Answered on

    The sale of the regional center to another company should not necessarily affect the existing contracts.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Any changes to the structure, ownership, or business model of the new commercial enterprise that occur prior to an EB-5 investor receiving his or her conditional lawful permanent residency should first be reviewed by an experienced immigration attorney. If considered a material change by the USCIS, it would require the filing of a new I-526 petition, which could be devastating if the investor is from a backlogged country. Changes that occur after receiving the conditional permanent residency status generally will not be considered material.

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    Sally Amirghahari

    Immigration Attorney
    Answered on

    Depends to the changes that may take place with the sale. If the changes are major then it could affect your I-829 petition. You should refer back to the partnership agreement that you signed with the regional center to find out whether such an event was discussed in the agreement and then discuss it in details with the current partners.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    The sale on its own will not jeopardize your I-829. However, the sale has to be done in a way to protect the interests of EB-5 investors/members. I would advise that you have an attorney represent you; in other words, do not rely on the representations of the RC attorney.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    It depends on what the new owners will do with the business. If the business activities change, it may be a "material change." That said, a mere change in the ownership may still give rise to material change. I'd want to look into the changes more fully to see what could be done.

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