What is EB-5 Redeployment of Funds?

Redeployment is one of the most critical—and frequently most misunderstood—aspects of the EB-5 Immigrant Investor Program. Though it sounds like a dry technical term, redeployment can have far-reaching implications on investors’ immigration status and risk exposure of funds. 

What Is Redeployment?

In EB-5 terminology, redeployment means the re-investment of funds after the initial EB-5 project has come to an end but prior to when an investor has fulfilled the program’s requirement of sustainment period.

This is typically the situation when a project is completed—and the investment capital returned—prior to the time when the investor becomes eligible for repayment under USCIS rules. In such a situation, to remain in compliance, the funds must be “redeployed,” i.e., invested in a new project that continues to meet EB-5 standards: at-risk and in a job-creating enterprise.

The Role of the Sustainment Period

Sustainment period is the shortest duration during which an EB-5 investor’s funds should stay at risk in a new commercial enterprise (NCE) to qualify for permanent residence.

Pre-2022 Policy (Legacy Interpretation)

In the pre-Reform and Integrity Act (RIA) policy, the period of sustenance started after the investor had been issued a conditional Green Card. This is because funds could remain at risk for five years or more due to visa backlog or processing delays, even when the initial project ended much earlier.

Post-2022 Interpretation (RIA-Based)

The EB-5 Reform and Integrity Act of March 2022 made changes. Maybe most significantly, USCIS finally recognizes the timeframe of necessary investment as a fixed two years from the date of investment, regardless of the issue date of Green Card.

Decreased timeframes reduce the need for redeployment—assuming that the initial term of the original project is at least equal to or longer than the two-year investment period.

Recent Legal Developments: The IIUSA Lawsuit

In March 2024, an EB-5 industry group, Invest in the USA (IIUSA), filed suit against the USCIS for its revised two-year sustainment interpretation.

Principal Arguments of the Lawsuit:

• IIUSA argues that USCIS lacked the power to reinterpret the sustainment period through any sort of administrative process without engaging in a formal rulemaking process.
• The lawsuit requests the court to reinstate the original policy wherein the sustainment period commences with conditional residency.
• IIUSA has also recommended a five-year fixed sustainment period to replace the existing interpretation.

Why It Matters:

The outcome of this lawsuit will have an effect on:

• The length of time that investors must keep their capital at risk.
• Whether or not redeployment of funds will be necessary—perhaps repeatedly.
• The level of investment risk and administrative burden borne by investors.

What If the Lawsuit Succeeds?

If the suit is successful and USCIS must return to the previous interpretation or implement a five-year requirement, a number of effects will follow:

• Redeployment risk will increase for all investors but particularly those from nations subject to visa retrogression (e.g., China, India)
• Longer holding periods—potentially over 7–8 years depending on processing time
• Several redeployments may be necessary in order to meet program requirements

Investors would need to be prepared for more complex fund management and potentially increased risk exposure on a longer horizon.

When Is Redeployment Most Likely?

Redeployment risk is highest when the original project concludes before the period of investment required has passed. The following situations increase the likelihood of redeployment:

• Short-Term Projects: If the project completes within 2–3 years but processing of immigration takes longer
• Visa Backlogs: Those coming from oversubscribed nations (e.g., China, India) have higher wait times before visa becomes available
• Quicker Project Completion: Effective implementation of the business plan can cause early return of funds

Regional Centers and Redeployment Strategy

When EB-5 money needs to be redeployed, regional centers are responsible for finding a new investment vehicle that meets USCIS standards. Not all regional centers undertake redeployment in the same way.

Good Redeployment Practices:

• Transparent communication with investors
• Conservative, low-risk reinvestment strategies
• Investor feedback and transparency
• Preference for short-term, income-producing assets

Poor Redeployment Practices:

• Long-term, illiquid, or speculative investments
• Lack of investor control or agreement
• Self-interest redeployment decisions benefiting center profits

Investors have to continually ask certain questions about a regional center’s redeployment policy before investing.

Reducing Redeployment Risk

While redeployment risk can’t always be eliminated, there are strategies to reduce exposure:

• Invest in ventures of longer timelines that overlap or exceed the likely sustainment period.
• Investigate regional centers thoroughly, including their past redeployment activity.
• Understand your country’s visa availability and how it affects processing times.
• Obtain legal and financial advice prior to making investment decisions.
• Ask up front: What if the project finishes early? Where will my money go?

Redeployment isn’t bad—but it’s a complex, high-risk aspect of the EB-5 process that demands consideration by investors. It requires an understanding of how the period of sustainment works, tracking judicial developments, and carefully examining your investment and regional center.

Regardless of whether the two-year policy remains or gets negated by litigation, all investors need to anticipate redeployment as an option. With the proper planning and suitable partners, redeployment can be managed responsibly, keeping your investment compliant, at-risk, and ultimately successful.

Work with trusted experts

Managing EB-5 investments is complex, but you don’t have to do it by yourself. Dealing with experienced professionals—immigration attorneys, financial advisors, and registered regional centers—can make it a reassuring experience and reduce the possibility of costly mistakes.

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Whether you’re new to EB-5 or down to your last few project possibilities, we’re here to help. Call to schedule a consultation.