specific project that they ’ ve underwritten and are comfortable with . In other words , most U . S . EB-5 lenders will issue a loan to an investor only for a specific project that they ’ ve pre-approved beforehand . Chances are by selecting one of the U . S . EB-5 loan programs out there in the market , you are also effectively making a decision to invest into a specific project .
This is understandable since the lender bears the risk if the project fails or the investor doesn ’ t repay . Lenders probably have more confidence in their project underwriting then that of the investor ( as they should ).
This could change in the future as many syndicates that are working on third-party lending solution could allow investors to acquire loans to invest into a variety of projects , but as of this date , these programs are still in their infancy .
COUNSEL ’ S EXPERIENCE ADVISING ON U . S . EB-5 LOANS
If an investor is interested in pursuing this option , it would be prudent for an investor to confirm whether current or future EB-5 counsel is comfortable with using this option for their investment . Not every firm is comfortable or willing to do it ( not unlike filing with partial investments for example ). In fact , some firms may refuse to allow their clients to use this option at all or charge exorbitant fees to prepare a response to Request for Evidence ( remember , a consultation is an opportunity for you to interview an attorney as well as seek legal advice before making a decision to hire ).
Thus , it ' s advisable for investors to ask a law firm whether they are experienced with filing I-526E petitions with U . S . EB-5 Loans , including structuring them , submitting supplemental filings , and preparing responses to future USCIS inquiries . Some questions an investor should ask a law firm they are interviewing is whether they believe U . S . EB-5 loans are legal / approvable , whether they are familiar with the U . S . -based EB-5 loan program that the investor is interested in , and whether the firm is comfortable preparing an I-526E with this option .
For example , as one can imagine incorporating U . S . EB-5 loans isn ’ t exactly a cookie cutter filing . Oftentimes that include weaving together multiple options that the investor has combined to fund their EB-5 investment and file their case .
INVESTMENT AND IMMIGRATION RISKS OF DEFICIENT LOANS OR I-526E PETITIONS
Needless to say , the credibility and professionalism of the parties involved with the U . S . EB-5 loan and the preparation of the underlying I-526E petition is critical . Lender credibility , lender source of funds , lender underwriting , and experienced counsel are important because they are all necessary components to the investors I-526E petition .
The catastrophic scenario is if there ’ s a weak link that could trigger USCIS denial , which will require refunds that may or may not be available , which would cause the biggest
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