The Fund has Guarantees, Not the Investor Directly…
The EB-5 fund is guaranteed, not the investor. An EB-5 investor would be investing as a limited partner in an EB-5 fund (BRC Partners IV LP) and would have no ability to enforce any guarantees themselves. The Corporate Repayment Guaranty also has limitations to the depth of the guarantee as the corporate entity does not have infinite credit and effectively has an element of credit risk.
To illustrate the case in point, the EB-5 investors become limited partners in the EB-5 Fund and the EB-5 Fund will invest in the form of a loan to the job creating entity (JCE). The EB-5 Fund will have repayment guarantees from the borrower, not the limited partners.
The investor has no ability to execute guarantees as a person. This is one reason why the investor is still “At Risk”.
Behring Companies has utilized corporate repayment guarantees or inter-company repayment guarantees in previous offerings and has received 100% USCIS approval on all final USCIS adjudicated petitions (as of May 30, 2017).
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