New Course Enterprise has a dedicated Fund which exclusively lends capital to qualified EB-5 investors so they can complete their required $800,000 investment. NC can issue either secured EB-5 Loans or unsecured EB-5 Loans.
Note: Total collateral must be more valuable than the total proceeds from the Loan. The EB-5 project cannot be used as a part of that calculation. The collateral does not have to be in the United States.
The EB-5 Investor Loan Program is a financing program offered exclusively by Playa Vista Equities where EB-5 investors can receive a loan of up to $450,000 for their $900,000 EB-5 investment.
All of the following requirements must be met in order to qualify for the Loan Program:
The interest rate will depend on the quality and amount of the collateral.
Step 1: Fill out our EB-5 Green Card Loan preliminary application. Our underwriting team will need at 7 days to evaluate your application to see if you pre-qualify.
Step 2: If pre-approved, schedule a call with our EB-5 Green Card Loan specialists to go over your loan options.
Step 3: With the help of your EB-5 Green Card Loan Specialist, select one of our pre-approved EB-5 projects
Step 4: Finalize EB-5 project selection, sign loan paperwork, and create your PVE EB-5 Investor Account.
Step 5: Retain your EB-5 immigration counsel to prepare I-526 paperwork.
Step 6: Wire your capital into EB-5 escrow account.
Step 7: Once escrow company certifies your capital has arrived, we will disperse your loan proceeds to theEB-5 project escrow account.
Step 8: Once the capital has arrived in Escrow, you can file your I-526 Petition.
Step 9: As the Project disperses profits to the EB-5 investor per the terms of their investment, part of all of the profits generated will be used to pay the interest expense.
Step 10: Once the term of the investment is over and capital is returned to EB-5 investors, the proceeds from the liquidation will be used to retire the principal balance on the loan before any incremental profits are distributed to the EB-5 Investor.
The underwriting fee is due prior to closing of the loan. The Annual Redetermination fee is due annually. You may elect to roll each of these fees into the principal of the Loan instead of paying it at the scheduled time.
For pre-approved EB-5 projects: 14 - 28 days
Yes. The dividends from the EB-5 project should exceed the interest payments due on the Loan, so the investor should not have to finance the interest payments independently. There will be net profits for the investor as well, even after the interest payment on the Loan is paid.
Playa Vista Equities will manage the dividend distribution process from the EB-5 Project to the EB-5 Project Fund (NCE), as well as the interest payment process for your Loan. You will be able to monitor each transaction via our proprietary Investor Dashboard, which all EB-5 investors have access to.
The capital is sent to the EB-5 project escrow account, at which point the escrow agent will provide the despot receipt, which will then be sent to all parties. From here, the EB-5 investor can file their I-526 Petition.
Yes. You may use collateral outside of the United States to secure the Loan.
It will be appraised during the underwriting process by a third-party, then every year thereafter. Any liabilities (mortgage, lien, secured debt, etc.) will be substracted from its value, which will represent the asset's net worth. The net worth is what you will be given credit for, not the gross value of the asset. The collective net worth of your collateral must exceed the Loan amount.
The Loan is repaid when the EB-5 project returns the capital back to the EB-5 investor. For example, if the EB-5 project returns the capital to the EB-5 investor after 5 years, the Loan is then repaid at that time.
Secured EB-5 Loans are backed by collateral which the EB-5 Investor owns. Unsecured EB-5 Loans are not backed by collateral. The primary difference is the risk the lender is taking. Typically, unsecured loans are riskier than secured loans and therefore have a higher interest rate. New Course Enterprises offers both secured and unsecured loans for EB-5 Investors.
Yes, you will be able to prepay the Loan without penalty typically over the first 12-24 months after the Loan closing. The prepayment window depends upon the EB-5 Project that you select.