Project redeployment risks
I read that EB-5 requires that your deployed investment is at-risk during cgc phase. Considering the backlog, we are looking at atleast 5-6 years before we get the cgc. Many of the projects might complete in 4-5 years. So that requires your money to be redeployed to show that it’s at-risk, while other early investors might get full return of capital. So this does a couple of things for late investors hurrying to meet the deadline:
- Delays your repayment of principal even after completion of project.
- The redeployment might be on a project that does not return the full capital.
I understand the return on this venture is the GC itself and not full return of capital. But it looks as if late investors like me, rushing to finish this process are at a disadvantage now - both in terms of reduced EAD/AP and also return of capital