EB-5 Redeployment in 2023

EB-5 Redeployment

Redeployment in EB-5 refers to a situation in which investor capital must be reinvested into a new qualifying investment. Historically, this has occurred when the job-creating entity (JCE) repaid the EB-5 loan to the new commercial enterprise (NCE) before the end of the “at risk” sustainment period for investors; thus, the EB-5 capital had to continue to be at risk in new investment.

This was often required for investors from backlogged countries who, due to extraordinary wait times for I-526 petition processing, did not complete their investment-sustainment period before the end of the maturity of the EB-5 loan.

Redeployment and the Reform and Integrity Act

The EB-5 Reform and Integrity Act of 2022 (RIA) significantly reduced the sustainment period for new investors, and thus makes the redeployment of investor capital unnecessary in most cases.

The RIA now allows for redeployment to happen anywhere in the U.S., whereas in the past it had to occur in the approved area of a regional center.

The RIA also requires that the original project was completed without material change and that the JCE has repaid the investor capital.

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