KEEP IT IN THE FAMILY
An investor might be resistant if the NCE redeploys
the funds into another project related to the original
borrower. Such new ventures may be illiquid unless,
there is a short time horizon associated with each new
project.
For example, the JCE requires the initial EB-5 project
to work on phase 1 of a project. Phase 1 gets
completed in record time and all required jobs are
created. JCE, following the terms of the offering project
and appropriate consent, as may be required under
the offering, from the NCE and investors, utilizes the
proceeds for phase 2 and then phase 3 and so on. If an
EB-5 issuer is able to contemplate a multi-phase project
with short life spans allocated to each phase, this could
allow the funds to remain within the NCE/JCE family.
PURCHASE OF EQUITY INVESTMENTS
Some have interpreted the draft policy rules to permit
the purchase of equities as a feasible alternative