EB5 Investors Magazine Volume 5, Issue 2 - Page 112

A CLOSER LOOK AT THE LAW S pecial attention must be provided to an EB-5 transaction that does not involve fraud and that otherwise encounters monetary issues that could jeopardize both the financial and immigration viability of the EB-5 investment. This does not happen very often, but the industry needs to be aware of the implications related to a so- called “troubled project.” or a “troubled business”. These issues should be anticipated both in the offering documents, including the limited partnership/operating agreement, as well as the loan documents and the loan administration process. There are two significant categories to be addressed, including immigration and financial issues. IMMIGRATION ISSUES From an immigration standpoint, the first priority is to create jobs and then maintain the at-risk component of the investment. If a project is in midstream of development that has not been completed or if the operating business does not create the budgeted revenues to create additional jobs, then this could pose a serious problem since without completion of construction or the execution 111 EB5 INVESTORS M AGAZINE of the business plan there may be a serious risk that the projected number of jobs will not create the number of jobs required to obtain I829 approval. Other potential problems include situations where the actual funding of the pro X\Y[YHY[\Y\X\H\Z[][ۈوHX\H܈HڙX]KH[X[]H؝Z[[[܈[[[[\[][\\\\]\][^HH\وۜX[ۋ܂\\Y\]][H[[وH[܈B۝X][ۈو\]Z]KSSPSTQT•HXۙ\وH\]X][ۈ\H[[X[[Yܚ]BوH[\Y[[HX[]Hو[\ܜXZ]HB]\وZ\\][ \[[YHHXܜœ]YXݙH\[\H[ۜY\][ۜ΂Xܛ[[ܛX][ۈۈH][\\\ݙ\Y][[^HHX[]HوH][\œ\\][H[[ ܈\]HHڙX ڙX \[]Y[\]X^HHX]\X[B[[[ZYܘ][ۈ[[][\\HY]][B[\XH[[X[XX[]HوHڙX X\