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 (redeploy@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 operation 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.  CanAm reserves the right to engage third-party advisors only when its necessary and in the best interest of our 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 $1.75 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 abide by the investment term that is applicable to the particular redeployment option they chose. CanAm’s redeployment platform aim to provide investors with investment options that are closely aligned with their estimated redeployment timeframe.

However, just like in EB-5, if an investor’s circumstances change and he/she decides to give up their EB-5 immigration, 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?

CanAm offers both loan-based and equity-based real estate projects for redeployment. We evaluate and select high qualify commercial real estate projects across all major asset classes (Office, Hotel, Multifamily, Industrial; Mixed Use) that meet our set of immigration and financial due diligence requirements.

Based on investors’ risk tolerance, they can choose a portfolio of fixed term loan-based real estate investments for their redeployment or a mix of loan and equity real estate projects to enhance an investment return.

Loan based real estate investment portfolios are the most suitable redeployment options for investors who are facing 4-6 years redeployment periods and are more risk conscious.

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

Municipal Bonds are debt instruments issued by U.S. local governments, territories, or their agencies to finance public projects, including schools, airports, roads, utilities, or to support day-to-day government operational need.

USCIS only considers municipal bonds that are newly issued to finance a new infrastructure project qualifying redeployment investment. These qualifying municipal bonds are a very small fraction of all new bonds issued hence only limited amounts can be purchased during 6 – 12 months period. To limit default and interest risk, our portfolio manager focuses on buying investment-grade, short-term municipal bonds that meets USCIS’ requirements.

Because municipal bonds are relatively liquid investments, they are the most suitable redeployment options for short-term (6 months to 2 years) redeployment periods.

3. Is there any return from the redeployment investments?

Yes, a 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 redeploy@canamenterprises.com or call 212-668-0692.

4. 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 risk profiles. It is certainly CanAm’s priority to select high quality redeployment options and help our investors understand the risk profile of these options and select one that suits their investment goals.

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

The June 2017 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.

On July 24, 2020, USCIS issued an update to provide further clarifications regarding the redeployment of EB-5 capital after the job creation requirement has been satisfied. First and foremost, CanAm wishes to reassure all investors that our redeployment platform is consistent with USCIS’s recent updates. We are also pleased that USCIS’s guidance now allows repaid EB-5 investors at least 12 months to implement their redeployment investments. CanAm will continue to proceed with diligence following the repayment of each EB-5 project loan to identify suitable redeployment investment opportunities.

6. 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.