Emphasizing the compliance requirements under the EB-5 program and applicable securities laws, EB-5 project teams frequently defer negotiating definitive financing documents to a later date. In certain cases, EB-5 project teams may not want to finalize definitive loan documents when the terms and timing of senior financing (either debt or equity) are uncertain or will depend on the amount and timing of the actual EB-5 funding. However, well-planned financing documents are critical in protecting investors’ interests and should not be treated as an after-thought or perfunctory post-offering step to put the EB-5 funds into the job creating enterprise (“JCE”) borrower. EB-5 project financing can take the form of equity or debt or any combination of the two. Each form brings its own unique benefits  MORE >


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