Three Blind Mice
on the Path to
In representing the developer, what
comes first: EB-5 compliant project
documentation or EB-5 funding?
by Edward C. Beshara
Due to the nature of the EB-5 program, it
must meet multiple indicators of success—
compliance with EB-5 rules and regulations and
financial viability—in order to be marketable
to foreign investors. The success of an EB-5
project hinges on foreign nationals investing in
it; EB-5 investors will not invest if they are not
certain that the project is EB-5 compliant and
will lead to a green card. On the other hand, it
does no good to have an EB-5 compliant project
if investors are not convinced of its financial
success and ability to create jobs.
In order to be viable and financially successful, the project
often requires the use of EB-5 funds as quickly as possible.
Therefore, funding of the project is equally as important as preparing EB-5-compliant project documentation. So, how does
one determine which comes first—the EB-5 compliant project
documentation, or the EB-5 funding?
Any developer approaching the EB-5 program will be but one
part of a complex apparatus. For the purpose of this analysis we
will focus on three groups, the titular three blind mice: the team
of professionals, the project developer, and the intermediaries
sourcing the investors. The individuals in these groups are blind
because they each believe their roles in the EB-5 project are par-
E B 5 I n v e s to r s M ag a z i n e