Garcia Trujillo is well positioned to tap an alternative capital source for investments throughout the U.S. The U.S. government created a visa classification in 1990 (revised in 1993) categorized as “employment-based, category 5” or “EB-5” wherein “Immigrant Investors” can earn lawful permanent resident status in the U.S. (“Green Card”) through investment in job-creating U.S. enterprises. Immigrant Investors may fund and operate their own businesses or, alternatively, take a hands-off approach and channel their investment through a “regional center” certified by the U.S. Citizenship and Immigration Services. Garcia Trujillo is experienced with the EB-5 visa program, the investment structures utilized by regional centers and the sourcing of EB-5 Immigrant Investors. Garcia Trujillo presents EB-5 investment opportunities to regional centers while the regional center executes the required legal documentation and maintains compliance with EB-5 rules.
Additional information on processes, regulations and timelines is available at the website of the U.S. Citizenship and Immigration Services: www.uscis.gov.
Capital for US Businesses
The EB-5 program channels foreign capital into job- and commerce-creating activities in the U. S. As a large element of the appeal to Immigrant Investors is obtaining lawful permanent residency, the terms of EB-5 investments often compare favorably with other sources of financing. EB-5 investments are often structured as interest-only debt instruments with a balloon payment at the end of year five. The investments offer competitive and sometimes below-market interest rates to the borrower. Covenants and representations imposed on the borrower tend to be less onerous than those of other lenders.
Recipients of EB-5 investment funds deal only with the regional center and do not have to maintain or manage contacts with the Immigrant Investor sources of funds. All the legal paperwork and EB-5 program compliance activities are managed by the regional center with the cooperation and input of the borrower.
Notable EB-5 Investments
Some of the more noteworthy EB-5 funded investments include:
- Time Warner borrowed $100 million in EB-5 funds and $47.5 million in two separate offerings to underwrite movie and TV production.
- Lionsgate Studios borrowed $66 million in EB-5 funds and $50 million in two separate offerings to underwrite movie production.
- Pennsylvania Convention Center Authority borrowed $122 million as part of the financing package to expand the Pennsylvania Convention Center.
- University of Pittsburgh Medical Center borrowed $70 million toward the construction of a healthcare facility.
- Comcast Corporation borrowed $26 million to finance the construction of its headquarters.
- Sugarbush Resort (Vermont) borrowed $40 million to finance the construction of three retail/hotel-condo buildings.
Garcia Trujillo’s familiarity with the EB-5 process and established regional center relationships enables us to seek EB-5 funding opportunities throughout the U.S. The management quality of EB-5 regional centers varies considerably. Many centers have very narrow industry approvals from the U.S. Citizenship and Immigration Services and can only invest in a very specific type of business. Garcia Trujillo advises clients on the EB-5 opportunities that may be appropriate and will work to execute appropriate transactions.