EB5 Investors Magazine Volume 7, Issue 2 | Page 9

to any interim immigration benefits while they wait for visa numbers, and they must keep their capital inves ted in the EB - 5 enterprise throughout that wait and the two years following their admission to the U.S. We can expect investors from those countries to be less eager to tie up their capital for such long waits for immigration benefits, and to the ex tent they are open to it, they might tend to demand more return on capital than EB-5 investors typically have been afforded by mass issuers of EB-5 qualified investments. "EB-5 investors are not entitled to any interim immigration benefits while they wait for visa numbers, and they must keep their capital invested in the EB-5 enterprise throughout that wait and the two years following their admission to the U.S." One of the biggest implications of a long wait for visa numbers is the prospect that the project will be completed and the developer will sell or refinance the project and repay the loan or equity typically supplied by the investor’s “new commercial enterprise” (NCE). USCIS now allows this to happen as long as the necessar y jobs have been created by that point, but it requires that the NCE then “re-deploy” the investor’s capital at risk in some other “commercial activity” at least until the investor reaches the end of the two-year period of “conditional residence.” USCIS has failed to p rov id e c r i tic al c la r if ic a tio n of the required parameters for this “reinvestment,” such as whether it needs to be in the same or any regional center area, whether it needs to be in the same or any TE A , and whether it can involve p u r c hasi n g ex is ti n g i n te re s t i n assets rather than injec tion for use in new job creation. Especially i nve s to r s f a c i n g l e n g t hy wa i t s for visa numbers must anticipate t h i s p r o s p e c t of r e d e p l oy m e n t and discuss carefully with knowledgeable business and legal advisors about the risks and possible protections that may be provided by the investment issuer. CHILD “AGE OUTS” AND DELAYED I-526 ADJUDICATION Generally, a child can qualify to immigrate with an EB-5 investor only if the child is under 21. Under the Child Status Protection Act (CSPA), however, the child’s age is locked in as of the date when the later of two events occurs: I-526 approval and availability of a visa number in EB5INVESTORS.COM 9