There are many possible redeployment solutions for EB-5 funds as well as how both the new commercial enterprises and EB-5 investors might go about implementing them . New policy updates have been issued by USCIS that impact the process for redeployment planning .
THE SUSTAINMENT PERIOD
When a new commercial enterprise ( NCE ) loans money to a job creating entity ( JCE ) or related affiliate , the JCE typically completes the project successfully and is able to repay the loan to the NCE within 4 to 5 years of an investor ’ s I-526 petition filing . Given the current retrogression climate , when dealing with investors from Mainland China and Vietnam , the question arises as to how the NCE should go about keeping the funds “ at risk ” when the lengthy adjudication / retrogression process prevents a Mainland China or Vietnam investor from becoming eligible for an I-829 petition for at least another 3 to 12 years .
"... Guidance from USCIS now states that funds must be redeployed in a manner related to engagement in commerce ..."
In addition , USCIS updated the definition of the period in which an EB-5 investment must remain “ at risk ” ( the sustainment period ) in its June 14 , 2017 , Policy Manual update to include the conditional residency period , effectively adding another two years to the investment period .
EB-5 investors born in Mainland China and Vietnam represent an estimated 85 percent of the active EB-5 capital today . In addition , they are the only investors who currently face a visa cap , a condition that stems from their strong demand for participation in the program . Given the pace at which Chinese and Vietnamese EB-5 investors have been filing I-526 petitions over the last few years , and barring any congressionally-granted infusion of additional visas , the retrogression wait is projected to remain extended for the foreseeable future .
Given such facts , it is imperative that NCEs begin , if they have not already done so , to analyze the possibility of new qualifying investments that may undertake the redeployed funds following project completion and / or EB-5 capital repayment by the JCE or its affiliate . While some NCEs are still in the I-526 subscription phase and have some time before the urgency for redeployment kicks in , many NCEs are facing the redeployment conundrum in 2018 .
ALLOWABLE INVESTMENTS
USCIS has issued additional clarifications regarding allowable
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