Structure of EB-5 Investments

Generally, investments under the EB-5 investment immigration program are structured as equity or debt investments.

Debt Model

• This model involves the creation of two enterprises—a New Commercial Enterprise and a Job Creating Enterprise.
• The investor makes the capital investment in the NCE.
• The NCE loans the capital to the JCE, which uses the funds to create the minimum number of jobs mandated under the EB-5 program.
• The JCE repays the loaned funds along with interest, usually paid at the rate of 5-8%.
• The NCE is liquidated after the loan has been fully repaid by the JCE.

Equity Model

• The foreign investor acquires true or preferred equity in the JCE by making the capital investment directly into the job creating enterprise.
• The equity may be issued directly to the investor or to a New Commercial Enterprise that is fully-owned by the immigrant investor.
• The JCE utilizes the funds to create jobs and to fulfill other requirements imposed by the EB-5 visa program for grant of permanent residence to immigrants in lieu of their investments in the USA.