In public-private projects, there is the involvement of a governmental entity. Therefore, there seems to be an impression out there that public-private projects are safer. This assessment is not necessarily the case. Among a whole host of other factors, the desirability of an EB-5 project depends on:
a) the ratio of equity to total capital stack needed for the project, that is the total spend;
b) the waterfall, that is the priority of payments for the EB-5 investors;
c) the existence or not of covenants that limit/restrict additional indebtedness;
d) the stage the project is – this would either increase or decrease the chance of reinvestment of the EB-5 funds.