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How do I present EB-5 capital to a bank?

If a project requires bank financing along with EB-5 investor capital how do you present the EB-5 capital to the bank, or structure the project to consider EB-5 capital as equity into the project? Do banks consider the EB-5 capital as a loan since it’s not secured? By utilizing and counting EB-5 capital we are trying to achieve bank financing LTC of less than 55% per project!

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    This question requires further detail before being answered. Additionally, the financial structure will determine whether the EB-5 funds are considered equity or loan.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    This is a complex question that will require more details, however, banks are routinely lending on EB5 projects. I would be happy to further discuss this with you.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    EB-5 capital generally is considered an investment; that is a requirement of the EB-5 law. However, there are certain EB-5 regional center projects that are structured as EB-5 equity investments into limited partnerships, which in turn loan money to the job creating entity. This is often referred to as the "loan model" and it is acceptable to the USCIS. In order to determine which model is right for your project, you will need to consult with an experienced EB-5 immigration attorney, such as myself, to advise you.

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    Marc Yelnick

    Immigration Attorney
    Answered on

    This issue would take a bit of structuring, beyond a quick yes or no answer.

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    Rohit Kapuria

    Immigration Attorney
    Answered on

    Most projects have a varied capital stacksome developer equity, some 3rd party financing/bank financing, sometimes a bridge, sometimes tax credits, and of course, eb-5 funds. We have worked on many deals with several large banks spread across the US. Most bank loans are structured as senior financing. Rather than jump into specific details on this public platform, I can offer you a complimentary consult to further discuss.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Our law firm has experience with the legal and financial infrastructure of EB-5 projects, which often includes a mixture of EB-5 financing and non-EB-5 or traditional financing. The affect this may have on bank loans and other aspects of the project and business can be reviewed by the various professions that an EB-5 attorney would coordinate and lead.

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    Ed Beshara

    Immigration Attorney
    Answered on

    Our law firm has advised clients pursuing the same type of legal and financial infrastructures you describe in your question. However, please note even though the structure may be EB-5 compliant you still need to make sure it is marketable and appealing to the investors'' demands.

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    Osvaldo F Torres

    RC Creator
    Answered on

    There are a variety of ways to structure the capital stack. The EB-5 funds may come in as equity. If the bank allows it, though, the EB-5 funds may come in as a loan, but this would have to be discussed and further explained.

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