Gainvest and Opportunity Zone Terminology

 

Gainvest and Opportunity Zone Terminology

 

Total Project Cost: the total amount of capital needed to complete the project

 

Capital Contribution: amount of money invested into an Opportunity Zone Fund

 

Project: a project designated to receive the opportunity zone tax benefits

 

Opportunity Zone fund: investment vehicle for opportunity zones

 

Opportunity zone business: entity operating within an opportunity zone

 

Project manager: leader of the project

 

Developer: leader of the project

 

Investor: invests in the project

 

Gainvest: marketplace of projects

 

Risk rating: likelihood the project will not return 100% of investment

 

Class Units: kinds of interest purchased in each project

 

Gainvest Opportunity Zone Fund: qualified opportunity zone fund

 

Gainvest Holdings: qualified opportunity zone business

 

Accredited investor: investor who meets definition under SEC Rule 501 of Regulation D

 

Working capital safe harbor: 31-month grace period to deploy capital into a project

 

Capital gains: profit from sale of capital asset, i.e. real estate, stock, bond

 

Cash, cash equivalent, or debt instruments: acceptable uses of capital to qualify for working capital

safe harbor

 

Designated writing: necessary written plan for deploying capital within 31 months into a project

 

SEC Registered investment advisor: firm that is an Investment adviser in the United States, registered as such with the Securities and Exchange Commission.

 

Subscription agreement: agreement for the sale of shares of the designated investment

 

Project Participation agreement: agreement for the project to participate in the marketplace

 

Operating agreement: agreement for the project management and operation

 

Investment Advisory Agreement: agreement for the investor to participate in the marketplace

 

Form D: SEC filing necessary to sell shares of the designated investment

 

Articles of Organization: formation documents necessary to file with the governing State.

 

Cash Sweep Account: liquid, interest bearing account connected to each project’s checking account

 

SPV (special purpose vehicle): limited liability company organized for each project.

 

 

 

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