The EB-5 industry received unexpected news this summer courtesy of the Policy Manual update issued by the USCIS, which caused a stir (and confusion) amongst the program’s staunch supporters.
“After years of asking for specific guidance on the further deployment of investment capital, USCIS surprised us all by releasing a Policy Manual update with unprecedented retroactive implications,” said Jeff Drinkwater, Regional Vice President, Business Development, at JTC Americas. “An estimated $12 Billion is projected to be redeployed over the next four years, and for many stakeholders, compliance will come at a heavy cost.”
To better understand the USCIS updates, JTC Americas, Formerly NES Financial, hosted an EB-5 webinar on Aug. 12 with Rohit Kapuria, Counsel at Saul Ewing Arnstein & Lehr LLP, and other expert panelists, who all candidly discussed the latest USCIS developments as well as the latest trends for EB-5 during COVID. Rohit shares what he’s learned about redeployment from the legal side and what issuers and investors need to do to avoid any misstep in the process.
“When we look at redeployment, there is obviously the consideration of what happened with respect to dealing with the ramifications of notice to investors. Many issuers forget is that it’s really critical, and from a legal perspective having dealt with a number of 829 preparations, including the notice,” said Rohit.
“Getting into that factor of being able to prepare the package on the prior project, which shows the flow of the capital and then the flow of the capital from the borrower or JCE back to the new commercial enterprise, new commercial enterprise down to the new project or new projects, depending on what the redeployment option is, shows how that capital is then spent and then coming back.
The 829 process is extremely time-sensitive and requires a painstaking amount of detail. Whenever I see JTC Americas being involved in a project, they always make our lives easy because they keep a ton of data on the flow of the capital, and if an issuer is not already using that type of backset information set, then it would behoove them to really start the process early.”
Watch the full webinar, “EB-5 Trends and Redeployment During COVID” today by registering here!