Dealing with Senior Lenders in an EB-5 Investment

Panelists: MICHAEL GIBSON, JOHN TISHLER, RONALD FIELDSTONE, ROHIT KAPURIA, RUPY CHEEMA

For EB-5 investors, the involvement of a senior lenders has advantages and disadvantages. 

Benefits to Investors include:

• Diligence and underwriting by an institutional lender

• Credit underwriting, completion guarantee, etc.

• Draw procedures during the construction period

Disadvantages to Investors include:

• Subordination of lien and reduction of cash flow available for repayment

• Limited flexibility in restructuring or workout scenario