Three Blind Mice
on the Path to
Project Success
In representing the developer, what
comes first: EB-5 compliant project
documentation or EB-5 funding?
by Edward C. Beshara
Due to the nature of the EB-5 program, it
must meet multiple indicators of success—
compliance with EB-5 rules and regulations and
financial viability—in order to be marketable
to foreign investors. The success of an EB-5
project hinges on foreign nationals investing in
it; EB-5 investors will not invest if they are not
certain that the project is EB-5 compliant and
will lead to a green card. On the other hand, it
does no good to have an EB-5 compliant project
if investors are not convinced of its financial
success and ability to create jobs.
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In order to be viable and financially successful, the project
often requires the use of EB-5 funds as quickly as possible.
Therefore, funding of the project is equally as important as preparing EB-5-compliant project documentation. So, how does
one determine which comes first—the EB-5 compliant project
documentation, or the EB-5 funding?
Any developer approaching the EB-5 program will be but one
part of a complex apparatus. For the purpose of this analysis we
will focus on three groups, the titular three blind mice: the team
of professionals, the project developer, and the intermediaries
sourcing the investors. The individuals in these groups are blind
because they each believe their roles in the EB-5 project are par-
E B 5 I n v e s to r s M ag a z i n e