How can EB-5 funds be used to pay off a traditional lender? I have purchased an existing building with an SBA loan. The loan is currently not in default, but we have entered into an agreement to refinance the lender out of the deal. The total project will be $6.5 million of which we have $1.5 million already invested. We are planning to build an entertainment complex and would like to use EB-5 funds to take out the lender and complete the construction. Can we use EB-5 funds for this and if so how much?
If the non EB-5 funds from traditional financial sources have been used in the project and it is contemplated that EB-5 funds will be subsequently used to pay off the debt, the the EB-5 funds will be used to pay off the bridge loan.