Why is a PPM still needed for a two-tiered loan structure?
A private placement memorandum is for a sale of securities, not to receive loan proceeds, which a standard business plan can do. So why is a PPM needed if an EB-5 deal will be structured as a two tiered loan?
In a two-tiered loan model the securities offering (which needs a PPM),is by the new commercial enterprise which receives the personal investment funds and then the new commercial enterprise loans the funds to the job creating entity.