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How do the regulations determine if Working Capital Assets are considered to be reasonable working capital?

How do the regulations determine if Working Capital Assets are considered to be reasonable working capital?


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  • Maria De Los Angeles Rivera
    June 17, 2020

    A very detailed plan for the use of the funds and schedule must be prepared and followed. Strict compliance is required.

  • Matthew Rappaport
    June 17, 2020

    This is usually done by reference to the QOZB's business plan. The business plan must describe the planned nature and timing of the use of the working capital. If the assets fit the business plan and meet the regulatory requirements. They are cash equivalents or short-term debt instruments. Then they will be considered reasonable working capital reserves.

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