In today’s EB-5 landscape, individuals are usually seeking EB-5 projects that are likely to return their capital to them when their EB-5 process is over. Many investors will choose a “loan-based” project which allows their funds to be pooled together into a special purpose vehicle (“SPV”) and then loaned to a developer. Traditionally, this has meant that the loan issued by the SPV, or (as termed by USCIS) new commercial enterprise or NCE, will be backed at some level by a hard asset such as real estate. With this in mind, some developers are proposing to provide the hard asset itself, i.e. real estate, directly to an EB-5 investor. This article discusses a “newfound” and dangerous trend that has reemerged in the Florida EB-5 investor market. 

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