Questions We Are Being Asked About Redeployment

CanAm Enterprises has always put its investors first, and the same philosophy applies to our approach to EB-5 redeployment. Please contact us below with any questions regarding EB-5 investments or redeployment – we are more than happy to answer all your questions.

Questions We Are Being Asked About Redeployment

 

Redeployment Process
1. What kind of redeployment documents will I receive?

Any redeployment options will be presented in a disclosure document that describes different investment opportunities in detail and allows for an investor to vote to redeploy his or her repaid capital into the redeployment investment of their choice.  

2. Can you confirm when the EB-5 loan will mature?

Yes. Please contact our Investor Relations Department (redeployment@canamenterprises.com) to learn about your project’s loan maturity date. Investors may also log in to CanAm’s confidential investor portal to obtain such information.

3. Do CanAm’s offerings allow redeployment?

Yes, all of CanAm’s offering documents have always contemplated the new commercial enterprises (NCE) being able to make a series of investments beyond the original EB-5 investment because they were each formed for the ongoing conduct of lawful business. As such, all of CanAm’s offering documents include provisions that allow the general partner to not only distribute repaid capital to eligible investors, but also for limited partners to vote to reinvest the repaid capital into any “Other Investment” through the acquisition of equity securities, other equity interests, loans, etc. USCIS has approved these provisions in all of CanAm’s limited partnerships and continues to do so when adjudicating investors’ I-526 Petitions.

4. Will CanAm seek consent of the investors before redeploying?

Yes, CanAm’s offering documents require investor consent for any material decisions regarding a limited partnership’s operations, including reinvesting in a redeployment investment.  In fact, because it is likely that there are material differences between the original EB-5 investment and a redeployment investment, it is a best practice for any regional center operator to seek investor consent before any redeployment arrangement is made.

5. Will outside third-party advisors be involved?

CanAm has always handled as much of its operations in-house as possible, and its redeployment strategy is no different. CanAm will be sourcing, structuring, and monitoring the redeployment investments for our investors so that we can lend our 30 years of immigration investment expertise to the process and ensure that our investors’ interests are prioritized.  There are no restrictions from USCIS regarding the involvement of third-party advisors in the redeployment of EB-5 capital. However, bear in mind that the involvement of third-party service providers in a redeployment transaction will require that those parties be compensated, which could lead to less revenue available to investors.

6. Can I request the repayment of my funds once my I-829 petition is filed with USCIS?

Yes. The majority of CanAm’s more than $1.3 billion in project repayments to date have been to investors whose I-829 petitions have been filed, and they are repaid within 10 business days of confirming wire transfer instructions.

7. What if I get my conditional green card much earlier than expected, due to visa backlog relief, marriage, or other means?

All investors, no matter the situation, will have to commit to the term that is applicable to the particular redeployment option, but CanAm’s redeployment strategy offers options with short, mid- and long-term redeployment periods. Currently, we require a minimum 6-month commitment to redeploy into municipal bonds. Alternatively, mezzanine loan options may have a term of 2-4 years depending on the loan. Preferred equity real estate investments could have longer investment terms of 5-7 years or more.  This is why it is important for investors to consider their expected wait times, as well as their liquidity and risk tolerance needs, in selecting the redeployment option that best suits them. In terms of eligibility under another category, CanAm cannot be responsible for that. Just like in EB-5, if the investor suddenly gets a marriage-based green card, we cannot issue a refund on that basis alone, and the investor would have to wait until loan maturity.

8. How often will CanAm provide a report to the redeployment investors?

CanAm will strive to provide an update on its redeployment investments on a quarterly basis.

9. When can an investor exit or redeem his/her unit from repayment?

Upon the expiration of his or her initial 2-year conditional residency period, and assuming all other requirements have been met, an investor may exit from redeployment and receive his/her principal repayment.

10. I am not CanAm’s investor. Can I redeploy my capital to CanAm’s redeployment solution?

Yes.  Not all regional centers will have suitable platforms or RIAs set up to redeploy investors’ capital. Those regional center operators can partner with CanAm to utilize CanAm’s redeployment solutions for their investors.

 
 
Redeployment Solutions
1. What type of real estate project will my funds be redeployed into?

Currently, CanAm is offering redevelopment and/or multi-family apartment projects through a mezzanine loan or private equity structure.

2. What are municipal bonds and how safe are they?

Municipal bonds are loans investors make to local governments. They are issued by cities, states, counties, or other local governments. For that reason, the interest they pay on the bonds is usually tax-free, but the source of repayment is the local government that issued them.

3. Will the redeployment investment be liquid enough to assure a timely return of capital at the end of the sustainment period?

It is CanAm’s mission to provide suitable redeployment options that meet investors’ immigration and investment goals.  CanAm’s redeployment strategy offers options with short, mid- and long-term redeployment periods. Currently, we require a minimum 6-month commitment to redeploy into municipal bonds. Alternatively, mezzanine loan options may have a term of 2-4 years depending on the loan. Preferred equity real estate investments could have longer investment terms of 5-7 years or more. This is why it is important for an investor to consider their expected wait time as well as their liquidity and risk tolerance needs in selecting the redeployment option that best suits them.

4. Is there any return from the redeployment investments?

Yes, redeployment investment is expected to generate market-rate returns for investors. The rate of return will depend on the investment type and duration. For detailed information about redeployment investment projects and returns, please contact CanAm at redeployment@canamenterprises.com or call 212-668-0692.

5. What happens if the redeployment results in a substantial loss?

USCIS clearly states that “there must be a risk of loss and a chance for gain” in any redeployment investment to meet the at-risk requirement. However, different investments offer different liquidity and risks. This is why it is important for an investor to consider their liquidity and risk tolerance needs in selecting the redeployment option that best suits them.

6. Has the reinvestment option provided by CanAm been approved by USCIS to protect my immigration status?

The current USCIS Policy Manual provides two examples of acceptable redeployment investments – namely a redeployment into another construction project or new issue municipal bonds, such as for infrastructure spending.  While the EB-5 stakeholder community is presently advocating for USCIS to confirm that the scope of permissible redeployment vehicles (for example, to include any investments in marketable securities) is broader than these two examples, USCIS has yet to do so. Therefore, for the time being, CanAm has decided that its current redeployment options should fall within these two examples:

  • Municipal bonds that mirror key characteristics of the original EB-5 investment
  • Mezzanine loans to qualifying real estate developers
  • Longer-term preferred equity real estate investment offerings
7. Will my funds be reinvested to another CanAm EB-5 project?

As far as CanAm is concerned, our investors will have already met all EB-5 Program requirements (including job creation) by the time the original EB-5 investment is realized. Importantly, USCIS does not require repaid capital to be redeployed into another EB-5 project. Therefore, CanAm seeks to present market-rate investment projects to our investors who need to redeploy  opportunities that provide quality returns but at much less risk than their original EB-5 investment and that still meet the USCIS requirements for redeployment so that their I-829 Petitions are protected.  Under no circumstances will it be offering EB-5 projects as redeployment investments to its investors.

Interested in learning about EB-5 capital redeployment in more detail? Contact us today.