News & articles
  • Posted on:  22 September 2016

Understanding how developers and landlords make use of the EB-5 program as part of their capital structure can be important for tenants, particularly with regard to the benefits (and additional requirements) it imposes on its users.

EB-5 capital is generally cheaper than standard forms of bank lending or insurance company-issued debt; all things being equal, the greater the fraction of borrowing financed by EB-5 investors, the lower a developer’s overall borrowing costs.

EB-5 funds are often deposited into escrow and released to a developer conditional on the government's initial approval of the project. Should the project not be approved, EB-5 investment capital may evaporate, leaving a developer scrambling for last-minute financing and potentially delaying the construction process.

Share with your friends
Нажмите, чтобы поделиться с друзьями