Reinvestment risk
Does the reinvestment risk happen only because of retrogression or are there other reasons why it could happen?
Answers
Yes. If the project is in its final stages of completion, on the one hand the project is very safe from a job creation standpoint since most if not all the construction jobs are likely to have been created. By the time the investor’s I-526 is approved, it is possible that many of the indirect and even the induced jobs are created. This makes the eb5 investment very safe from an immigration standpoint. On the other hand, since the investor in this case would most likely have a few more years for his whole process to finish, he would most likely be facing reinvestment risk. Therefore, even though the investor is not a citizen of a country subject to retrogression, he could still be subject to reinvestment risk by simply choosing a “safe” project that is ready to return his principal back when he is not ready to receive those funds as of yet.
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