More EB-5 AAO Decisions
April 4, 2011 5 Comments
The USCIS website has posted several more 2010 Administrative Appeals Office decisions in the EB-5 category.
Feb182010_11B7203 to Feb182010_13B7203 and Feb182010_15B7203 are additional denials related to the Capital Area Regional Center Watergate Hotel project, which I described in an earlier blog post. These cases offer interesting insight into the official understanding of “material change,” TEA designation, acceptable investment terms for regional centers, and acceptable use of EB-5 capital.
Feb182010_14B7203 and Jul082010_01B7203 are new decisions on I-829 petitions for stand-alone EB-5 investments. The first case involves investment in an existing restaurant, and treats the issue of what constitutes a “new” commercial enterprise and the necessity of a wholly-owned subsidiary relationship between the “new commercial enterprise” and the “job-creating entity.” The July decision involves investment in an existing hotel, and discusses source of funds documentation required when the EB-5 funds come from a gift. Both decisions trace failure to demonstrate job creation to faults in the I-526 business plan — a good reminder to invest thought and experience in getting the business plan done well.
Don’t bother reading the following, which are mis-categorized or very brief: Mar292010_02D7101 (though this one is kind of entertaining: a petitioner explaining that he hasn’t met his Chinese finance due to his fear of high bridges and flying), Aug032010_01D7101 to Aug032010_03D7101, Mar082010_01B7203, May212010_01B7203 (cases withdrawn), Aug042010_01D7101, Aug052010_01D7101, Aug052010_02D7101 (misfiled L-1).
I have, by the way, compiled a log of EB-5-related AAO decisions from 2009 and 2010, tabulating the issues involved in each case. And if you’re very nice to me, I might share.