For EB-5 investors, capital redeployment is an important consideration when investment funds are repaid by the original job-creating entity to the New Commercial Enterprise (“NCE”). The Reform and Integrity Act (“RIA”) establishes specific parameters governing when a NCE must redeploy investment funds while continuing to maintain the EB-5 investors’ capital at risk.
Under the RIA, the Secretary of Homeland Security is directed to prescribe regulations that allow an NCE to redeploy investment funds anywhere within the United States or its territories for the purpose of maintaining EB-5 investors’ capital at risk, provided that certain requirements are satisfied.
Requirements for Capital Redeployment
The RIA identifies four key conditions that must be met for the redeployment of investment funds.
1. The Business Plan Has Been Executed in Good Faith
The NCE must have executed the business plan for the capital investment project in good faith and without a material change.
This requirement focuses on whether the original investment project was carried out in accordance with the contemplated business plan and without a material alteration to that plan.
2. The Job Creation Requirement Has Been Satisfied
The NCE must have created a sufficient number of new full-time positions to satisfy the program’s job creation requirements for all EB-5 investors in the NCE.
The required jobs may be created either directly or indirectly, as evidenced by the methodologies provided under the Act.
Accordingly, satisfaction of the applicable job creation requirement is one of the conditions that must be met before the investment funds may be redeployed under these provisions.
3. The Initially Deployed Capital Has Been Repaid
The job-creating entity must have repaid the capital that was initially deployed in conformity with the original investment contemplated by the business plan.
In other words, the redeployment provisions apply after the capital initially deployed to the job-creating entity has been repaid in accordance with the original investment structure contemplated by the business plan.
4. The Redeployed Capital Must Remain at Risk
After repayment by the job-creating entity, the capital must continue to remain at risk.
The RIA specifically provides that the capital may not be redeployed into passive investments, such as stocks or bonds.
This requirement reflects the purpose of capital redeployment under the provision: allowing the investment funds to be redeployed while maintaining the EB-5 investors’ capital at risk.
Where May the Capital Be Redeployed?
When the statutory requirements are satisfied, the RIA provides that the NCE may redeploy the investment funds anywhere within the United States or its territories.
Therefore, the provision does not limit qualifying redeployment to the location of the original capital investment project or within the boundaries of the regional center. The central requirements remain that the statutory conditions for redeployment are satisfied and that the redeployed capital continues to remain at risk.
Consequences of Noncompliance
The RIA also establishes consequences when the requirements governing redeployment are violated.
If the Secretary of Homeland Security determines that an NCE has violated any of the applicable requirements in redeploying funds invested in a regional center, the Secretary shall terminate the designation of that regional center.
This makes compliance with the statutory redeployment requirements particularly significant for regional centers and NCEs handling the redeployment of EB-5 investment funds.
If you have question about Capital Redeployment or the EB-5 immigrant investor program, contact us at info@enterlinepartners.com.
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Copyright 2026. This article is for information purposes only and does not constitute legal advice. This article may be changed with or without notice. The opinions expressed in this article are those of Enterline and Partners only.
