enough collateral and equity available over and above the
senior loan to minimize the risk factor of the senior loan
default. The “capital stack” must be clearly disclosed in
detail in the offering documents. There should be a clear
delineation on a percentage basis as to all the funding
sources, including the developer equity, EB-5 funding, the
senior indebtedness and other types of incentives that may
either be superior or subordinate to the EB-5 financing,
such as new market tax credit, other governmental credit,
governmental grants, or similar types of support to the
program that add capital to outfit the cost of the project.
Identify unique risks of a specific project
It is not sufficient to provide generic risk factors that do not
otherwise take into account the specific risk factors that are
unique to the project in question. By definition, each project
has unique risk factors that need to be addressed, which take
into account the following factors:
1. Nature of the industry. Specific risk factors that are
unique to the industry of the project need to be analyzed.
For example, a hotel project would have unique risk
factors related to the hospit