The EB-5 requirements will allow an equity investment in a direct EB-5 project, while in an EB-5 regional center project the investment will be into the new commercial enterprise which will then loan the funds to the job creating entity.
There is no maximum, only a minimum $500,000 in TEA investments and $1 million in non-TEA investments. Funds are generally equity. They can be given as loans by a new commercial enterprise into which you invest for job creation purposes.
EB-5 investment can be equity or loan. The former is normally seen in direct EB-5 projects and the later is widely used in regional center projects. There is no maximum as to the amount of the investment.
The financial investment required is $500,000 or $1 million depending on the economic status of the area where the investment is made. Loans are not allowable forms of EB-5 investments. The funds can be an asset, but the investment must create 10 new jobs for American citizens or permanent residents. There is no limit on the maximum investment.
EB-5 funds must come in as equity in the "New Commercial Enterprise" that raises such funds. However, if the project is sponsored by a regional center, the New Commercial Enterprise may in turn make a loan of funds so invested into the "Job Creating Entity" that will actually spend the funds on job-creating activity. In this structure, the return on investment to the EB-5 investors depends on the performance of the borrower under the loan. There is no maximum amount of equity that may be invested. Only a minimum of $1,000,000 per investor, or $500,000 if the project is located in a targeted employment area (TEA).
There is no maximum loan or equity the EB-5 investor can contribute. The minimum EB-5 investment ($500,000 if the job creation will occur in a targeted employment area) must be contributed as equity into a New Commercial Entity (NCE). This money cannot be returned to the investor until sometime after the green card is renewed (I-829 is approved). The business that actually creates the jobs can be either the NCE, or, in the case of a regional center offering, the NCE may loan the money to another company which will create jobs, called the Job Creating Enterprise (JCE).
Equity is allowed. In fact, the investment must be an equity investment into the new commercial enterprise ("NCE"). An NCE may be in the business of offering loans to projects and that is permissible, but in a sense, all EB-5 investments are equity investments. There is no maximum amount of capital, only a minimum amount. Also, all of the capital must be at risk and used for job creation purposes.
There are two parts to this: First, the investor must actually make an investment into the new commercial enterprise. If the new commercial enterprise is also the job creating entity, then we are all set. If the job creating entity is a different entity, the new commercial entity can either make a loan or equity investment into the job creating entity. Total investment limits may be subject to SEC regulations. For that, we cooperate with experienced attorneys who specialize in those areas.