EP04 Using Loans or Gifts for EB-5
Can I get a loan to make an EB-5 investment? Can I gift funds to my child for EB-5? These are one of the most common questions related to EB-5 these days.
EB-5 Source of Funds - Home Equity Loan
Law Offices of Vaughan de Kirby 415-221-3500 5139 Geary Blvd San Francisco, CA 94118.
For several years, the EB-5 “loan model” structure has dominated the EB-5 industry. The loan model typically involves a special purpose vehicle ("SPV") that is formed to accept EB-5 investors. The SPV then makes a loan to the company that creates the jobs.
The EB-5 loan regional office provides a mezzanine loan of, say, $30 to $35 million, and the borrower-developer contributes $10 million to $15 million in cash and equity. Smaller EB-5 loans have also been done in less populated states, sometimes down to as small as $10 million.
What is EB-5 Capital? EB-5 capital is a unique alternative to traditional sources of funds. The EB-5 program was established in 1990 to encourage foreigners to invest in the United States and create American jobs in exchange for a U.S. green card.
Congress created the EB-5 Program in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors. In 1992, Congress created the Immigrant Investor Program, also known as the Regional Center Program.
EB5 Loan Program. EB-5 is a federal loan program designed to stimulate our nation’s economy through job creation and capital investment by foreign investors. The EB-5 is a win/win, both for borrower and foreign investor. The benefit to the borrower is a source of funds for their project. The benefit to the foreign investor is that—once...
We connect you directly to individuals who want to put up their personal funds either on that personal project of yours eg wedding, education, funeral, home renovation, salary cash advance etc OR that business project eg New business start-up, business expansion, importation, exportation, home loan, bridge loan etc.