Two common ways EB-5 capital is structured, explained neutrally.
Last updated: August 2026Reviewed by: EB5SETU Editorial TeamScheduled review: February 2027
| Loan Model | Equity Model |
|---|
| The NCE lends capital to a borrower/JCE. | Investors acquire an ownership interest. |
| Has stated interest and maturity terms. | Returns depend on operating distributions and capital events. |
| May be secured or unsecured. | Usually subordinate to project liabilities. |
| Repayment normally depends on operations, refinancing, or sale. | Exit normally depends on distributions, refinancing, or sale. |
Neither structure is automatically safer than the other. Each carries its own risk profile, and the specific terms of a given offering — security, priority, guarantees — matter more than the label “loan” or “equity” alone. Review the specific terms in the offering documents.
This article is for general educational purposes only and does not constitute legal, immigration, tax, or investment advice. It does not describe the terms of any specific offering. EB-5 law, USCIS policy, and Visa Bulletin availability change over time — confirm current requirements with USCIS, the U.S. Department of State, and your own independent immigration, securities, and tax advisors before making any decision.