If You’re Against EB-5 Funding, Read This

If You’re Against EB-5 Funding, Read This

"In the case of the EB-5 investor, the non-monetary return is the visa."

Does EB-5 funding make more sense for some product types than others? Does it create opportunities we haven’t considered on the affordable housing front? Do the incentives go beyond the promise of residency?

GlobeSt.com caught up with Steven Klein, partner with law firm Gerson Preston, to get answers to those questions in part two of this exclusive interview. You can still read part one: Are EB-5s the Answer to Affordable Housing?

GlobeSt.com: Are there other developments that EB-5 funding makes more sense for, such as mixed-use projects, that creates substantial job opportunities as well as housing for workers?

Klein: Mixed-use projects are an excellent means for creating jobs and allowing for the EB-5 investor to receive a return. The larger scale a project is, the more jobs it will create. By incorporating or requiring an affordable housing component for mixed-income developments, one also creates housing for the workers.

GlobeSt.com: What, in your opinion, does EB-5 funding create in terms of opportunities for all types of projects including affordable housing?

Klein: EB-5 provides a vehicle to fund important projects that serve a community. Without that funding, the project would not necessarily be viable from a profitability standpoint.

There are important projects throughout the city that local governments do not have the dollars to fund and build on their own but through EB-5 financing there is an incentive for the private sector to come in and help fund and build them. EB-5 funding is a valuable form of funding that allows for developers to look for the “greater good” of the community while not investing in a project that with normal funding mechanisms be doomed to fail.

GlobeSt.com: Those who apply for the EB-5 get a ROI of 0.5 to 2 %. versus those who are not interested in immigrating to the U.S. see ROI as high as 6% to 8 %. What are the key incentives of participating in the EB-5 investor program? Is the promise of residency the driving force since investment does not yield as high a return as investing without plans to become a U.S. resident?

Klein: We should be realistic when discussing the EB-5 program. The investor receives the return on his investment through a monetary return and sometimes through a non-monetary return. 

In the case of the EB-5 investor, the non-monetary return is the visa. The greater the value placed on the non-monetary return, the lower the monetary return will need to be for the investor. In summary, the EB-5 program provides a win-win scenario, where the community benefits from projects that otherwise might not be built and the investor benefits from the value of the visa obtained through this program.



  • Florida

Securities Disclaimer

This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.