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Question:

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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?

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Answers:

February 10, 2015 16:10 Ed Beshara

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.

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