EB-5 and Hospitality Financing: Why EB-5 No Longer Slows Deals

By David A. Sudeck —

This post is the fifth in a series presenting my current thoughts on the viability and timeliness of EB-5 financing for new hospitality construction. Each installment is published as a standalone piece and can be read independently of the others in the series.

• EB-5 and Hospitality Financing: A Structural Shift in Capital Markets
• EB-5 and Hospitality Financing: Rural TEAs—Still the Fast Lane
• EB-5 and Hospitality Financing: Urban EB-5 Is Still a Large-Scale Game
• EB-5 and Hospitality Financing: Leverage and Structure Matter More Than Price
• EB-5 and Hospitality Financing: Why EB-5 No Longer Slows Deals (this post)
• EB-5 and Hospitality Financing: How EB-5 Improves Equity Returns
• EB-5 and Hospitality Financing: Practical Steps for Developers
• EB-5 and Hospitality Financing: Why Now Is a Good Time

Developers often worry that incorporating EB-5 will delay their projects, but that perception is now largely outdated. Today, a number of specialized EB-5 Regional Centers can close using their own balance sheet capital and subsequently backfill with EB-5 investor proceeds. Others have been able to raise EB-5 investor proceeds (once the I-956F is approved) much faster than expected. It is not uncommon for the Regional Center to have completed the EB-5 raise faster than our developer clients can put the funds to work.

We can work with the borrower and the Regional Center to craft a timeline so that the funds should be available when they are needed—similar to a conventional loan closing.

Where the EB-5 Regional Center has its own balance sheet to advance funds, the EB-5 financing functions as a fully funded closing with competitive terms. This dynamic stands in contrast to the outdated assumptions about timelines and complexity that continue to suppress EB-5 adoption despite pricing that is often competitive with banks and below debt funds, along with stronger leverage and non-recourse terms. For developers weighing whether EB-5 belongs in their capital stack, we would be happy to help evaluate whether the closing and funding mechanics should be viewed as an obstacle.

Feel free to reach out with any questions or thoughts on this topic, and please meet with us at the upcoming 2027 EB-5 & Global Immigration Expo in Newport Beach, California, January 20-22, 2027. Click here to register.

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David is a partner and co-chair of Blank Rome’s Hospitality practice, where he focuses on the hospitality industry, with particular emphasis on the financing structures that support hotel development and acquisition. His practice draws on extensive experience guiding developers, lenders, and investors through complex capital stacks in the hospitality sector. Learn more about his practice here.