Capital Stack Structure

The capital stack refers to the layered structure of financing used in EB-5 projects. It includes different sources of funding such as senior debt (bank loans), mezzanine financing, developer equity, and EB-5 investor capital.

Each layer has a different level of risk and repayment priority. EB-5 capital is typically positioned in a middle-risk tier, above equity but below senior debt. Understanding the capital stack helps investors evaluate financial stability and repayment likelihood of a project.