NES Financial offers a series of articles written by industry experts addressing significant issues in the EB-5 industry. This article by Ronald R. Fieldstone, The EB-5 Workout, details two significant issues that stem from a troubled EB-5 project and the various players that are involved in any attempt to salvage such a project.
The EB-5 industry is familiar with the high-profile, isolated cases of fraud. However, situations do arise where an EB-5 transaction is properly undertaken, does not involve fraud, and runs into financial trouble. Two significant issues that stem from such a project are immigration issues and financial issues.
The immigration issues are further broken down into the job creation requirement and the at-risk component of the investments. The financial issues are largely focused on financial security and return of capital.
The EB-5 Workout discusses the various entities that may be involved, with emphasis on the professionals that should be involved to salvage a troubled EB-5 project:
- Immigration attorneys and other specialized legal counsel
- Different types of loan documents and legal protections
- Senior and junior lenders and qualified substitutes of developers
- The SEC’s recent involvement and processes
To read The EB-5 Workout, download the full eBook, Insights from Experts: Medallion Partners Cover Hot Industry Topics.
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