Bridge Financing - EB-5 Visa Policy Memorandum
With I-526 petitions now taking over 12 months to receive approvals, and in some instances the related investor funds not being released to the project until after I-526 approval, the USCIS released a policy memorandum on May 31st permitting the use of ‘Bridge Financing’ in EB-5.
See the excerpt below from the USCIS EB-5 Adjudications Policy – May 30, 2013 :
“Since it is the commercial enterprise that creates the jobs, the developer or the principal of the new commercial enterprise, either directly or through a separate job-creating entity, may utilize interim, temporary or bridge financing – in the form of either debt or equity – prior to receipt of EB-5 capital. If the project commences based on the interim or bridge financing prior to the receipt of the EB-5 capital and subsequently replaces it with EB-5 capital, the new commercial enterprise may still receive credit for the job creation under the regulations…”
Bridge or interim financing allows EB-5 project developers to take out interim financing to construct and develop the project in accordance with the schedule. EB-5 capital as it is received may then replace any interim/bridge financing.