EB5 Investors Magazine Volume 2 Issue 1 | Page 12

Continued from page 9 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