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How can I find equity sources for my EB-5 project?

We are looking for sources of equity for our EB-5 projects rather than debt. Would using an equity source instead of debt be better for EB-5? What would be the best way to find if there are any equity sources available and would a regional center help with the search?

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    The use of capital can be equity-based or loan-based. Contact regional centers within your area and ask for assistance. It is likely that regional centers have agents abroad to source investors. Please consult an immigration attorney for a thorough analysis of your matter.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Pardon me if I am misunderstanding you, but you can structure your project to be financed by debt or equity (that is, a loan model). Through an equity model, investors would be making equity investments directly into the job creating entity or into a new commercial enterprise that would make equity investments into the job creating entity. Regional centers (often fans of the debt model) would help you with finding investors and to take advantage of their USCIS approval.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    Your question is vague, you can certainly have investors invest using the equity model instead of the debt model. It will depend on many factors, such as how the deal is structured, your offering and whether the investors want equity.

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    Ed Beshara

    Immigration Attorney
    Answered on

    The first step is to retain an experienced EB-5 attorney who has contacts with the sources of EB-5 equity investors. The groups who have access to the sources may advise on the best marketing approach and whether a debt or equity model is better.

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    Lei Jiang

    Immigration Attorney
    Answered on

    Without knowing the details of your project, I really cannot advise you on how to structure the deal. Also, we will not know whether a regional center will help you. Your best bet would be to contact nearby regional centers and ask them for assistance. For your question, you really need a face to face consultation with EB-5 or corporate lawyers.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    All EB-5 investments are equity investments, but the uses of capital can be equity-based or loan-based. In other words, a regional center project may involve a new commercial enterprise that uses EB-5 capital to purchase equity in the job-creating entity, or one that provides a loan to the job-creating entity. Working with a regional center allows for the loan model, because the investors get credit for indirect job creation. A regional center may have marketing in place and may already be working with agents and finders abroad to source the investors. You might consider working with such a regional center.

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