Investments of EB-5 capital by eb-5 New York State, LLC
EB-5 New York State is actively in the process of identifying suitable job-creating endeavors in New York State, into which EB-5 capital can be invested. Over the next 5 years, EB-5 New York State intends to invest over $200 million of EB-5 capital into New York State commercial enterprises. We plan for that new EB-5 capital to be invested with $400 million of additional (traditional) capital, resulting in $600 million of new investment in New York State. Our plan is for that total investment to result in over 12,000 new jobs and nearly a billion dollars of economic impact in New York. In order to achieve that goal, EB-5 New York State is actively soliciting appropriate commercial enterprises into which to invest EB-5 capital.
The following is a summary of background information on investments of EB-5 capital:
Jobs created |
The most critical characteristic of any EB-5 investment is that the investment must create or retain jobs in New York. The exact number of jobs required to be created or retained depends on the amount of the EB-5 capital invested. The number of jobs created or retained will be determined utilizing an economic model prepared by EB-5 New York State. |
Investment location |
The investment must be made in New York State. |
Types of investments |
EB-5 New York State has wide latitude in the types of "commercial enterprises" which may be invested into. For example, EB-5 New York State can invest EB-5 capital into:
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Required return on Investment |
A primary objective of EB-5 New York State is to help create new jobs and economic development in New York by offering new, relatively inexpensive and flexible capital for job creating commercial enterprises. Each investment is judged on its own merits and the cost of capital will be a function of many factors. Investments of EB-5 capital facilitated by EB-5 New York State, however, do not require the high rates of return which are required, for example, by a venture capital investment. |
Types of Investments |
EB-5 New York State is granted wide latitude in the types of investments of EB-5 capital it can make. For example, EB-5 New York State can make a direct investment into an operating company or into the assets utilized by an operating company. EB-5 New York State can make an investment of equity, debt, a combination there of, and can be very flexible in the capital structure of the investment. |
Time horizon |
EB-5 New York State investments of EB-5 capital are often designed to be invested for approximately 5 years. It is not required that an investment be held for exactly 5 years. The specifics of an individual investment of EB-5 capital vary by the investment. |
Amount of investment |
The minimum investment of EB-5 capital made by EB-5 New York State into a commercial enterprise is $5 million. The maximum amount of EB-5 capital invested is over $100 million. These amounts can be increased or decreased depending on the scope of the project. |
Other capital |
Ideally the EB-5 capital will be invested into a commercial enterprise with other funds. These other funds might include conventional debt financing, equity financing, state or federal government support, and other sources of capital or in kind support necessary for the job creating endeavor. |
For additional information on the investments made by EB-5 New York State and whether an individual investment is appropriate, please contact EB-5 New York State.