What investors should consider when selecting U . S . -based lenders for EB-5 investments
The ability to acquire a U . S . based loan could be a useful option in an investor ’ s decision-making toolbox . Learn what issues should be analyzed to determine if this is the right choice .
By Nima Korpivaara , Phuong Le , and Niral Patel
It ’ s been over a year since the EB-5 Reform and Integrity Act of 2022 revived the EB-5 program . Yes , demand is certainly there , but today ’ s EB-5 investors must navigate situations where they want to invest but sufficient liquidity is hard to come by , interest rates tick increasingly higher , and nobody has much of an appetite to sell their stocks or house when they have to invest in EB-5 .
Today ’ s investors are more sophisticated and grapple with an arguably more complicated matrix of issues than ever before . Gone are the days where an issuer could simply cross their arms and demand that investors fully fund their capital contributions before they can subscribe to an EB-5 offering .
But with complicated problems , today ’ s investors need and demand more thoughtful solutions to help them invest safely . One option is the recent appearance of U . S . based loan programs to fund EB-5 investments .
While U . S . -based EB-5 loans are certainly a useful option for investors , it ’ s clear that there ’ s a lack of useful information on analyzing these programs . As discussed below , while most
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