How EB-5 Helps to Control Your Costs By Gregory Finkelson
One of the less-discussed advantages of utilizing EB-5 immigrant investments for funding projects is the cost-avoidance factor. Not only are EB-5 investors more eager than traditional sources to loan money in multiples of $500,000, they are willing to lend it at a much lower rate.
Keep in mind that the primary objective of EB-5 investors is gaining permanent residence in the U.S. They are willing to put their entire investment “at risk,” hoping for a better life in America. Living here is something that far too many of us take for granted. Not so for foreign investors who still see America as the Land of Opportunity. These investors are typically willing to charge significantly less interest, if any, than any other funding source.
Looking at it from a cost perspective, why would a developer want to spend 10% APR or more in interest on a $500,000 loan when the same amount is available at a low, single-digit rate? Granted, there are single-digit rate sources available, e.g., the SBA, but those rates are in the seven-to-nine percent range.
If an EB-5 investor wants to charge interest – it is entirely his option – the rate is usually in the one-to-three percent range. The term “win-win situation” has never been as meaningful as it is with the EB-5 investment visa program.
To learn more about how to put the EB-5 investment visa program to work for you, contact Dr. Gregory Finkelson at American Corporate Services or call 415-682-2550. To order my book, How to Find Chinese Investors, Agents & Clients for Your EB-5 Projects & Services - A Practical Guide for Regional Centers, Attorneys, Developers and Businessmen, click here.