You choose the Regional Center and the Regional Center ensures the project is EB-5 compliant.

• When investing through an EB-5 regional center, an EB-5 petitioner will usually invest into a limited partnership fund established specifically for that chosen EB-5 project. This limited partnership fund then issues a loan to the EB-5 project developer.

• The limited partnership fund functions similarly to a private bank issuing construction loans. There is usually some collateral offered to the fund by the project developer, such as an equity pledge or corporate guarantee to ensure the debt is repaid. A good analogy is home mortgages; if you have a mortgage and fail to make payments, the bank that issued you debt would foreclose on the property and initiate a sale to reclaim funds.

• Through this loan, the project developer demonstrates job creating activity through their budget expenditures on the project.

• In the case of real estate based EB-5 projects, once construction completes the developer will operate the project until the project has reached stabilized occupancy and then the project is refinanced or sold. The EB-5 limited partners are then repaid from the proceeds of the new long-term debt or sale at the end of their individual investment terms.

• EB-5 Limited Partnerships sometimes take equity positions in real estate investment funds. Contact Behring Companies to learn more about what equity investments are available.