Since EB-5 can be either mezzanine debt, senior debt or equity, while OZ investments can only include equity, how can we as a developer best benefit from both programs?
Each of these programs stands on its own. A large project located in an Opportunity Zone can raise capital from foreign investors looking to get a visa and investors with capital gains looking to get an immediate deferral and tax-free status for subsequent gains after 10 years. The legal requirements for EB-5 are much more stringent. Seek legal assistance for EB-5 setup.
One can contribute minimal equity and has the fund borrow the debt.
A developer may certainly consider both as part of the capital stack for the project. How much and how to proceed will depend on the offer and the agreement with the investors and creditors.
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