EB-5 Regional Centers in Project Finance: Using EB-5 Capital in lieu of Mezzanine Financing

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The EB-5 program — which was created in 1990 but has grown in popularity only over the past few years — allows overseas investors to obtain a green card in exchange for providing a minimum of $500,000 in financing for qualified projects. The explosive growth of the EB-5 program has caught the attention of real estate and project developers nationwide. Developers have been using the program to establish so-called EB-5 Regional Centers, which are essentially entities, approved by the United States Citizenship and Immigration Service (“USCIS”) that allow a developer to raise capital from foreign immigrant investors for a specific project or projects. The total capital raised per project has ranged from $1,000,000 to over $300,000,000. As the use of EB-5 Regional Centers has expanded, the structure of EB-5 Regional Centers and underlying investments has also increased in complexity–which has allowed EB-5 capital to be used in increasingly diverse types of projects.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Wassem Amin, Dhar Law, LLP | Attorney Advertising

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