A stated maturity is not automatically fatal, but a guaranteed return of capital conflicts with the requirement that the investment be at risk. The distinction lies in the contract language and how the funds are actually used. Counsel should review the instrument alongside the at-risk requirement and the job-creation evidence before the investor commits.
Show counsel the words, not the summary
Provide the operating or partnership agreement, any loan note, and the security documents, and point to each sentence that mentions repayment, redemption, preference or default. Ask which of them the reviewer regards as a risk to the petition and which are ordinary commercial terms. Also confirm the required capital amount for the intended filing and whether the targeted employment area or infrastructure basis for a US$800,000 investment is documented.
Hand counsel the operating or partnership agreement, any loan note, the security documents, and the subscription agreement, and point to every sentence mentioning repayment, redemption, preference, or default. Ask which of them the reviewer regards as a risk to the petition and which are ordinary commercial terms, and ask for that answer in writing. A stated maturity is not automatically fatal, while a guaranteed return of capital sits badly with the requirement that the investment be at risk, and the difference lies in the language rather than in the sales description.
Confirm separately the capital amount applicable to the intended filing and, where a lower threshold is claimed, the documented basis for it. Keep the written answer with the file.