As clarified by USCIS’ policy, an investor must maintain his or her EB-5 investment during his or her “sustainment period” which is the 2-year period of the investor’s conditional residence. For investors impacted by retrogression or other delays in obtaining conditional residence, at the time of loan repayment, USCIS requires them to further redeploy their capital within a “commercially reasonable time” into some at-risk investment in a manner which is consistent with the new commercial enterprise’s ongoing business operations. Within the EB-5 industry, there has been significant debate as to what type of investment redeployment is necessary, especially for investors who want flexibility in being returned their capital once their 2 years of conditional residence has been completed.
Importantly, USCIS does not require that the redeployed investment involve the same degree of risk as the original job-creating enterprise contemplated in the investor’s I-526 petition to be deemed sufficiently “at-risk” for the sustainment period. Therefore, CanAm aims to redeploy investment funds in the safest possible alternative provided under USCIS policy. CanAm reasons that if the initial EB-5 project investment has created all the jobs required for the I-829 Petition, then the objective of any redeployment vehicle should be capital preservation for the duration of the time before the capital can be repaid to the investor.
CanAm has been evaluating the viability of several redeployment vehicles and reinvestment options that are USCIS-compliant – including new issue municipal bonds – which CanAm believes protect investors’ capital as much as possible and are sufficiently liquid to be able to repay CanAm’s investors on an ongoing basis after the expiration of their sustainment periods.