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For example, imagine a scenario in which a regional center
project has raised all the necessary EB-5 capital to construct
and operate the amusement park it plans on opening in a few
years. Many of the project details remain in flux, however, while
the EB-5 funds sit in escrow; the land purchase for the project
site may not be finalized until the funds are released, and by
that time, the affordable equipment prices agreed upon with
local vendors may no longer be guaranteed. Furthermore, the
community has expectations as to when the amusement park
will open, according to originally announced plans. Under this
scenario, the longer the EB-5 funds remain in escrow, the more
uncertainties will arise, such as land availability and the ability
to maintain originally set purchase prices for project equipment.
This puts the success of the project in doubt, and in turn, puts
the approvals of the I-526 petitions in doubt. Such a scenario
creates the very same uncertainties that investors were trying to
avoid by advocating for escrow in the first place. Loan-based
deals include their own additional challenges, such as meeting
financing deadlines to keep the project alive.
For regional centers with full escrow accounts, solutions for
keeping up with market demands have been ad hoc and rudimentary, such as