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General Conditions

EB-5 Construction Bridge Loan Program General Conditions

ØThe maximum loan size is 50% of the EB-5 capital raise;

ØPricing varies widely based on the type of project, number of investors, geographical location of the project and additional available credit support. In general, you can expect the all-in cost of the financing to cap out at approximately 12% for the first year;

ØThe initial term is one year with extension options available for an additional fee;

ØThe project must be fully subscribed prior to closing;

ØThe lender is bridging the I-526 approval risk by the USCIS and not the subscription risk of raising capital from foreign investors;

Ø100% of the EB-5 funds need to be depositedin an escrow account in a U.S. bank before we will consider funding a bridge loan;

ØPrincipal and accrued interest is automatically paid down as escrows are liquidated following approval of the I-526 petitions; and

ØAnnual yield maintenance is required.

This bridge loan program is designed to accelerate the early cash flow of a project, enabling the developer to partially fund upfront expenses up to a year earlier. Qualifying expenses can include land acquisition, architectural expenses, permit fees, grading and other early-stage construction costs.

The lender includes seasoned EB-5 professionals who will handle all underwriting. It is important that the bridge loan is structured in accordance with current USCIS guidelines so as not to negatively affect I-526 approvals. I encourage early consultation with their team to insure compliance in advance of the capital raise when at all possible.  

If you would like further information on this program please contact us at funding@apfafinancial.com with EB-5 Bridge Loan in the subject line.