EB5 Investors Magazine Volume 5, Issue 2 | Page 115

A CLOSER LOOK AT THE LAW viability of the project. With respect to a troubled business, there are unique issues that need to be addressed. For instance, if there is a significant shift in the market for a particular project due to regional factors, competitive environment, or a change in the industry itself, such as occurred during the recent recession, that presents a host of entirely different concerns. It is one thing to fix project problems, but another to fix business issues that may be based upon uncontrollable external factors. Accordingly, it is always advisable to have a backup plan to address these concerns. For instance, for a condominium project that confronts sales issues, can the project be converted to a rental to otherwise sustain the investment? The same would apply to other such real estate projects where the proposed use may no longer be viable and alternative uses need to be established. "From an immigration standpoint, the first priority is to create jobs and then maintain the at- risk component of the investment." To the extent the project involves a non-real estate business, the volatility of such business presents additional risk factors that need to be addressed, such as a restaurant operation whose concept is not viable due to market conditions. Again, the goal here is to have a plan that has built-in flexibility to navigate these types of circumstances. Given the fact that the EB-5 industry has expanded greatly over time, it is only natural that there will be more troubledtroubled projects that ariseand troubled businesses in the future given the increase in volume of projects being undertaken. Therefore, the industry will need to address this process by accessing professionals to assist in the process and preserve the integrity of the investment from both an immigration and financial aspect. RONALD R. FIELDSTONE Ronald R. Fieldstone is a partner at Saul Ewing Arnstein & Lehr LLP and specializes in corporate/securities and taxation law. Since 2009, he has served as corporate and securities counsel for multifaceted industries involving EB-5 immigrant visa investor offerings. He represents both developers and regional centers in EB-5 matters. His legal practice includes the preparation of private placement memoranda and related documents. Fieldstone frequently lectures and authors in the EB-5 corporate and securities fields for numerous government sponsored organizations, industry trade groups and professional associations. EB5INVESTORS.COM 114