EB-5 for Developers – EB5 Capital

What we do

Why EB5 Capital? For commercial real estate developers, EB-5 financing is an attractive source of capital – especially since developments ideally suited for EB-5, like hotels, are among the most difficult to receive non-recourse construction financing using traditional capital sources.

Our company offers the ability to provide non-recourse capital and, depending on the project, this can take the form of a senior loan, mezzanine loan, preferred equity, or joint venture equity.

While all asset classes are eligible for EB-5 financing, certain property types generate more jobs and therefore support a larger EB-5 allocation in the capital stack.

Eligibility

At EB5 Capital

We are always looking for new investment opportunities and partnerships. Our project partners range from developers to companies seeking expansion opportunities from retail to manufacturing.

To be eligible for the EB-5 program, a project must be located in a Targeted Employment Area (TEA), which is a rural area or an area that has an unemployment rate greater than 150% of the national average. EB5 Capital can assist developers in determining if their project’s location qualifies for a TEA designation. Developments located in a TEA that generate a substantial number of living-wage, full-time jobs are our primary candidates. We are able to provide senior loans, mezzanine loans, preferred equity, or joint venture equity into projects with owners and/or institutional equity partners.

General Project Parameters

Every project is unique. Aside from being located in a Targeted Employment Area (TEA), there is no one set of rules that will apply to all projects. The following general parameters can help you determine whether EB-5 financing might suit your project. A certain project does not need to meet all of these conditions, but the more conditions that are met, the better.

Developer equity contribution of at least 20% of the total cost.
Complete project capital stack at the start of fundraising.
Clear 3- to 5-year exit strategy for EB-5 investors.
Proven track record of similar successful developments.
Experienced project team – general contractor, architect, etc.
Proven market demand with strong submarket fundamentals.
Zoning/entitlement approvals in place.
Under construction or groundbreaking within 1 year.

FAQs

What is a Targeted Employment Area (TEA)?

To determine whether a project is located within a TEA, you would assess the project’s location using official government data. For rural area designation, you would confirm that the project is outside of a metropolitan statistical area (MSA) or a city with a population over 20,000. For unemployment-based TEAs, you would check local unemployment rates against the national average, often using U.S. Bureau of Labor Statistics data or specific regional unemployment reports, ensuring the rate is at least 150% of the national average. Typically, regional centers, like EB5 Capital, can come to a quick answer on whether something is likely to be determined to be a TEA through conversations with their economist.

What determines if a project is in a Targeted Employment Area (TEA)?

This is an involved question in most cases that requires significant time to determine. The ease of determining whether your project is in a TEA will depend on its specific location.

How long does the fundraising process last?

The duration of fundraising is a function of the size of capital sought to be raised, and the experience of the EB-5 regional center. After fundraising has been launched, a good time estimate would assume an average of $20M per month.

What are the closing costs?

Closing costs are typically the same as any other form of capital.

What are your minimum and maximum funding sizes?

Ideally, funding sizes are between $30M – $80M million. However, we can make exceptions on a case-by-case basis.

How long is the typical investment term?

We aim to return our investors’ capital in three to five years.

What is the typical cost of the funds?

Cost varies based on the structure and risk of the investment, but is generally comparable to traditional forms of capital.

How much equity do developers need to contribute?

We typically require 20% from the partner and other sources, but this varies on a case-by-case basis.

Are developers responsible for any aspect of the immigration process for individual investors?

No. EB5 Capital, our investors, and the investors’ attorneys handle all matters pertaining to the immigration process.

Explore EB-5 Investment Opportunities

If you’re interested in learning more about the EB-5 Program or EB5 Capital, we encourage you to contact us using one of the methods provided below.

📩 Email: investmentinquires@eb5capital.com
📞 Phone: +1 (202) 652-2437
📄 Online Inquiry Form