Borrowers

For Borrowers

For borrowers, the professionals at Cloudseed will conduct comprehensive research, analysis and due diligence in order to qualify a project as a potential investment. Selection criteria is based on several factors including the financial standing of the developer, their history of successful projects, and commitment to creating new jobs in our Region.

The Cloudseed International Fund is committed to providing an exceptional level of service and building lasting relationships through trust and transparency.

photodune-2997854-modern-skyscrapers-lCommon examples of real estate projects that have used EB-5 financing in the past include: hotels, mixed-use, hospitals, health and senior care facilities, and public infrastructure projects. EB-5 capital is a flexible and cost-effective alternative to project financing in today’s ever-changing lending environment. If you are interested, please review our project checklist and complete our Confidentiality Agreement and return to info@cloudseedfund.com. Please include your best contact information and we will review the package and contact you.

Once the term sheet is agreed to and signed, Cloudseed will begin the fundraising process. The fundraising process can be lengthy depending on the size and scope of the project and the time frame may vary based on several factors. The typical terms of the loan in the debt model is a 5 year interest-only balloon. Upon the accumulation of the full loan amount in escrow, the funds will be released to the project. As the project develops, the Borrower will continue to work with Cloudseed to provide job-creation information. Cloudseed counts job creation through multiple methodologies including but not limited to:  revenue projections, construction expenditures, direct employment, and econometric modeling. The Fund and its team of experts will determine the best methodology to be used.

Cloudseed International Fund will only consider projects that have strong financial security and a high likelihood of job creation.

Download our Confidentiality Agreement.

Lending Criteria

 

Cloudseed International Fund project consideration is based on 3 main criteria:

 

  • A project must create 10 direct or indirect full-time jobs in the U.S. for every $500,000 USD borrowed as long as the project is in a rural or Targeted Employment Area (TEA).  If the project is not located in a rural area or TEA, then the project must create 10 direct or indirect full-time US jobs for every $1,000,000 USD borrowed.
  • Typical project loan amount minimum is $10,000,000 USD.
  • To give our investors the best chance to obtain their green card, the Cloudseed International Fund will only consider projects that have a high expectation for job creation and significant financial security.

 

Any other lending criteria will be considered by Cloudseed International Fund on a case by case basis.

 

 

Steps of the Process

 

Below are the typical steps for the EB-5 process with the Cloudseed International Fund:

 

Step 1:  Cloudseed International Fund and the Borrower agree on terms and execute project term sheet

Step 2:  Cloudseed begins marketing the project overseas

Step 3:  The USCIS begins reviewing investors for eligibility and upon individual approval, money is collected in escrow

Step 4:  The Funds are released from escrow, via third party verification, to the project

Step 5:  The borrower will provide Cloudseed International Fund with job creation information upon request

Step 6:  At the end of loan term, the Borrower will make a balloon payment to Cloudseed International Fund

General Project Parameters

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We believe that every project is unique.  Therefore, there is no set of rules that can apply to all projects. The following general parameters can help you determine whether EB-5 financing suits your project.  It is not necessary for a project to meet all of these parameters, but the more that are met, the better.

  • Groundbreaking projected 8-12 months in the future
  • Complete projected capital stack at the start of fundraising
  • Developer equity approximately 10% to 20% of total project cost
  • Clear 5 to 6 year exit strategy for EB-5 investors
  • Proven track record of similar successful projects
  • Experienced project team
  • Proven market demand with strong sub-market fundamentals
  • Regulatory approvals in place
  • Strong government support and/or participation (can range from letters of support to actual financing, grants, or land contribution)

 

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