In EB-5, redeployment refers to the reinvestment of funds that have been repaid from a previous EB-5 investment into a new project to satisfy the required investment sustainment period.
Redeployment of funds is necessary when the initial project has completed or the investment has been returned and the investor has not yet received their permanent residency status. USCIS requires that redeployed funds be placed in a commercial enterprise that is consistent with the requirements of the EB-5 program and that the investment create the required number of jobs.
One of the main problems with EB-5 redeployment is that it may not comply with the original intent of the EB-5 program. The redeployment of investor funds could lead to a diversion of investment away from the original project, which may not have been the investment that the investor intended to make.
Additionally, the risk associated with a new project may be different than the original project, which could be a concern for investors. Redevelopment could also lead to uncertainty around the timing of the project and the potential for delays or losses.
Finally, the redeployment of investor funds can be a complex and lengthy process that may require additional legal and administrative fees.
