EB-5 Financing, EB 5 Funding and EB 5 Capital
The EB-5 Immigrant Investor Program provides an opportunity to secure alternative financing for projects of all types and sizes. The use of EB-5 financing in real estate development projects has become common following its increased use when the capital markets dried up during the recent recession. In addition to serving as a supplemental funding source for a project, EB-5 financing is often less costly than conventional loans.
Working with a Regional Center is particularly beneficial for developers when it comes to meeting the requirement that at least ten (10) new jobs be created for each investor in a project. Congress designed the Regional Center Pilot Program in a way that maximizes the calculation of the number of jobs attributable to the investment. In addition to direct jobs, indirect and induced jobs may also be counted in connection with projects that are sponsored by a Regional Center.
A key factor for a developer considering the use of EB-5 financing in a project is timing. The preparation of the Offering documents may be time consuming and the regulatory review process is often prolonged. Typically, interim financing such as a bridge loan must be secured in order to commence construction, with EB-5 financing eventually used to retire the temporary loan. It is important to begin planning well in advance of a project’s intended start date.
If you are interested in finding out whether your project is a good candidate for the EB-5 Immigrant Investor Program please contact us and we will be happy to talk to you about the program’s requirements (again, the primary one is that the project create at least ten new qualifying jobs per investor) and benefits (including adding diversity to your capital stack and a lower cost source of funding). To get started please contact us.