How much interest does an EB-5 investor earn on their redeployed capital? - EB5Investors.com

How much interest does an EB-5 investor earn on their redeployed capital?

The project I invested in provides investors with a 0.005% return during a 5-year loan term.  The PPM provides for redeployment, which will be needed as myself and many of the investors in the project are from China.  The PPM does not, however, state whether or not I will receive any interest payments during the redeployment period.  Should I expect to receive interest payments?  What type of interest rates should investors expect to receive?  

Answers

Blake Harrison

Blake Harrison

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Interest rate terms for EB-5 investors vary from project to project. You will need to work with the regional center and your attorney to gain further insight on the interest rates paid to you during the redeployment period.

Fredrick W Voigtmann

Fredrick W Voigtmann

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In order for the capital to be considered at risk (it must remain at risk during the conditional period), it must potentially be subject to both gain and loss. You should contact the regional center directly regarding your question and you should expect to receive something in writing disclosing the potential gain and risk of loss in your redeployed capital. If you do not receive an answer or the answer is not satisfactory, you should retain at attorney who can represent you and protect your rights, immigration and otherwise.

BoBi Ahn

BoBi Ahn

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This is information that should have been provided to you. There is no set rate for interest payments for EB-5 projects. They vary. You should definitely check with project/regional center management.

Charles Foster

Charles Foster

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In terms of the interest the investors should expect to receive for capital that is required to be redeployed for perhaps some significant period of time, normally you would refer to the terms and conditions as set forth in the Private Placement Memorandum. If it is silent, there would be a presumption that the investors would receive at least the same return on their investment as they did initially. There is no reason to believe that you would necessarily receive a higher return on your investment, but again that depends upon the project developer and the relevant documentation.

A Olusanjo Omoniyi

A Olusanjo Omoniyi

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Advisably, consult an attorney to review your PPM. Typically, investors whose money is being redeployed should expect to receive interest payments for the redeployment. In a similar situation, the interest rates are likely to be what is usually paid which is something like between 0.005% and 1%.

Julia Roussinova

Julia Roussinova

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You will need to direct these questions to the Regional Center.

Lynne Feldman

Lynne Feldman

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Every project is different so you need to check with the project itself. You are entitled to this information.

Jinhee Wilde

Jinhee Wilde

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Many of the redeployed investments call for higher interest rates. However, it will depend on the negotiated terms of the 2nd round of the loan, which will not materialize until the initial loan is close to maturity and ready to be redeployed.

Mark AM Catam, Esq

Mark AM Catam, Esq

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You would need to check with the GP what the return is on the redeployed funds.

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