I am seeking funding for a 15 plex that I may start building this next summer. Is this what the EB-5 program is for? How does the process work? Would it be feasible to get EB-5 funding by July of this year?
Any for-profit business can be structured as an EB-5 project, as long as the job creation requirement is met. The recruitment of investors for funding is essential to the project; moreover, you will need to demonstrate that each investor has the ability to create 10 qualifying jobs by investing in your project. Consulting an experienced EB-5 immigration attorney to guide you through the process is highly recommended.
July would be a very aggressive timeline, because to accept any foreign investor, you need an EB-5 immigration attorney to assist you with the project's compliance with the EB-5 rules and regulations, and to lead a team of professionals to create required documents like a business plan, economic report, and securities offering documents. Finding investors will also take time, as well as affiliating with a regional center if that would be beneficial to your project. This process can take more than six months.
Borrowing and repayment of a loan with EB-5 funds is generally permitted if disclosed in the offering documents.
EB-5 can fund building projects. Obtaining funding by July is possible, but not probable unless you already have investors lined up. You would have to go to foreign brokers to find investors and since there are hundreds of projects out there you would need someone with expertise in the area to help you with your presentation.
You can pool funds as a direct investment EB-5 and get several people to invest. For each $500,000 or $1 million investment (depending on where it is located) the business would have to create 10 full-time jobs. If it is something you are serious about, you should seek counsel, but what you are suggesting is possible if you find the investors.
July is a tough deadline, but you can borrow money and as long as it is anticipated that the EB-5 money is going to be used to pay back the loan, this is permissible.
