Lexology.com recently provide some insight into the minds of senior lenders and their perspectives on participating in projects partially funded by EB-5 investors.
Established, high-profile senior lenders add a priceless amount of credibility to EB-5 projects when they participate in some way in the overall funding package. “The main advantage from a marketing point of view is the perception that if the senior lender has approved the financing of the project and is monitoring the funding and due diligence related to the project, this provides additional protection for the EB 5 investors. There is an assumption that the senior lender has done its diligence and will not lend money unless the project is in order and proper documentation is provided, such an environmental, title, zoning, permitting and the like.”
However, from the senior lender perspective, they must weigh risks that are variable depending upon the structure of the funding. Their concern is typically about the risk of exposure should anything go awry with the EB-5 investments.
– See more at: http://www.datsyn.com/article/4186/2015/06/25/Some-Insights-into-EB-5-Project-Senior-Lender-Thinking#sthash.hsY0Ne2X.dpuf