EB-5 Loan Defaults and Immigration Program Under Trump

The “EB-5” program enables foreign investors to obtain U.S. visas in exchange for investments in the U.S. of at least $500,000 and the creation of at least 10 jobs. Debt provided by EB-5 investors has become a commonplace form of financing in major commercial and multi-family residential real estate developments, senior living facilities, film financings and a variety of other industries. As a result of, among other things, market pressures, shoddy underwriting practices and, in some cases, fraud, the default rate on EB-5 debt far outpaces the default rate on conventional financing. These defaults pose a major risk to the immigrant investor, both from an immigration and financial perspective, and give rise to a variety of unique restructuring issues. Potential changes to the EB-5 program under the Trump administration may provide further complications.

The webinar will the following specific topics:

• The current landscape for EB-5 loan defaults
• The projected trends in EB-5 loan defaults, and the reasons for those trends
• Red flags and warning signs that indicate an EB-5 loan may not perform
• Business/workout challenges unique to EB-5 loan workouts
• Immigration concerns with potential EB-5 workout solutions
• Potential legislative changes to EB-5 program