EB-5 investments take a variety of forms.
In some cases, the investor gets an ownership stake in a property, as with the Orange Medical Plaza, an office building across from St. Joseph Hospital being built with $5 million in EB-5 investments.
Most typically, though, the EB-5 investment serves as mezzanine financing, or a subordinate loan that fills the gap between a company’s senior debt and its equity.
In those cases, investors get their money back, with a low return, after they get their permanent green cards – a process that takes up to five years.
Because investors’ primary concern is getting a green card, they’re willing to accept low interest rates, usually for less than 1 percent a year.
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