What can EB-5 investor proceeds be used for in a project?

As long as there are no conflicting agreements or terms, it is possible for a project to apply EB-5 funds immediately upon the investor's remittance into the project. It is also possible to apply EB-5 funds to all areas of the project, including the purchase of land. However, certain applications of funds, such as purchase of land, may not have any significant job-creating benefits. EB-5 funds can also be used to take out preexisting developer equity, so long as the project can demonstrate that their application is needed to ensure that the project can develop and therefore meet the target of creating sufficient jobs.

While EB-5 funds can be used to replace previous construction loans ("bridge loans"), USCIS has not generally accepted land purchases to be acceptable EB-5 expenditures.

The cost of the land is not considered part of a building project. It cannot be included as part of the EB-5 investment.

The EB-5 can serve as a type of mezzanine funding, in that it can be in the form of financing, instead of giving an equity position.

You can, but it is very complex.

There is a likelihood that USCIS will take the position this money is not being used for job creating activities. Purchasing land is not favored.