Investing in an EB-5 project is a major financial and immigration decision, and selecting the right project is crucial to ensuring success. Investors need to consider job creation, financial security, and repayment potential, all while navigating the evolving EB-5 landscape.
At the heart of CanAm Enterprises’ success is its rigorous due diligence and institutional-level project selection process—which has helped thousands of investors secure U.S. residency while safeguarding their capital. In The EB-5 Show, CanAm’s CEO, Pete Calabrese, shared insights into how CanAm selects EB-5 projects, how investment structures impact investor security, and what investors should prioritize when evaluating an opportunity.
CanAm’s Track Record: A Proven History of Investor Success
CanAm has long been one of the most trusted names in EB-5. Unlike newer regional centers that lack a proven history, CanAm has built a track record of delivering results:
- 72 EB-5 projects sponsored
- $3.5 billion raised in investor capital
- Over 5,400 I-526 petition approvals (15,000+ conditional green cards)
- Nearly 2,900 I-829 approvals, leading to 8,000+ permanent green cards
- $2.5 billion in repayments to investors
These achievements make CanAm an industry leader and a benchmark for reliability and investor protection. However, these results don’t happen by chance. They are the result of strict due diligence and a disciplined approach to project selection.
Learn More: Check out our Past EB-5 Projects
How CanAm Selects EB-5 Projects: A Multi-Layered Vetting Process
Unlike some EB-5 operators that develop their own projects, CanAm operates independently—allowing it to evaluate potential investments without conflicts of interest objectively.
The company reviews ten times as many projects as it ultimately sponsors, applying a multi-layered due diligence process to ensure that only financially sound, immigration-compliant investments make the cut.
Key Steps in CanAm’s Project Selection Process
- Extensive Market Research – Identifying high-demand sectors and evaluating economic conditions.
- Developer & Borrower Evaluation – Assessing the financial health, credibility, and past performance of project partners.
- Project Feasibility Analysis – Reviewing location demand, revenue potential, and scalability to ensure viability.
- Job Creation Projections – Ensuring a 20–30% buffer beyond EB-5 minimum job creation requirements.
- Financial Structuring & Risk Mitigation – Structuring projects to prioritize capital security and investor repayment.
- Independent Third-Party Audits – Using outside financial and legal experts to validate project viability.
“Our focus is not just on getting investors through the EB-5 process,” Calabrese emphasized. “It’s about ensuring their capital is protected and that they get paid back in a timely and structured way.”
Understanding EB-5 Project Structure: Debt vs. Equity and Capital Stack Insights
While due diligence and project selection are critical, how an EB-5 investment is structured can be just as important in determining an investor’s level of risk and potential return.
Many investors are unaware of the significant differences between debt-based and equity-based EB-5 projects—and how these structures affect their financial and immigration outcomes.
Debt vs. Equity: What’s the Difference?
Debt-Based EB-5 Projects
- Investor funds are structured as a loan to the project developer.
- EB-5 investors receive defined repayment terms and priority in the capital stack.
- The loan is secured with collateral, providing an added layer of protection.
- Borrowers must return the capital when the loan matures.
Equity-Based EB-5 Projects
- Investors own a share of the project instead of lending money.
- Higher risk because repayment depends on project profitability.
- No guaranteed timeline for capital return—investors are at the mercy of market conditions.
- Investors are last in the repayment hierarchy, meaning they get paid only if the project succeeds financially.
Why CanAm Structures EB-5 Investments as Debt, Not Equity
CanAm structures all of its EB-5 projects as secured debt rather than equity. Here’s why:
- Stronger Investor Protections – Investors are priority lenders, not owners, reducing exposure to risk.
- Defined Repayment Terms – Investors have clear exit timelines rather than waiting indefinitely for profit distributions.
- Higher Capital Security – Loans are collateralized, ensuring added layers of protection for investor funds.
- Lower Volatility – Debt-based investments are less vulnerable to market fluctuations than equity investments.
Calabrese explained that this conservative, risk-managed approach has been a cornerstone of CanAm’s investor protection strategy.
“Our job is to minimize risk while maximizing investor security. Debt structures provide more stability, a clear repayment pathway, and an added layer of financial backing.”
The Capital Stack: Why It Matters for EB-5 Investors
Another critical factor in EB-5 project security is the capital stack—the mix of funding sources that finance a development.
- A healthy capital stack should NOT rely too heavily on EB-5 funds.
- EB-5 should represent only a fraction of the project’s total capital structure.
- The project should include developer equity and senior debt to ensure financial stability.
Key Questions Investors Should Ask About Capital Stack
- How much of the project’s funding is coming from the developer’s own equity?
- Are EB-5 funds the primary source of financing, or just a portion of the capital stack?
- Is there additional collateral securing the investment?
- Where do EB-5 investors rank in the repayment hierarchy?
A strong capital stack means the project is less reliant on EB-5 capital—reducing investment risk and increasing the likelihood of capital repayment.
Final Thoughts: Choosing the Right EB-5 Investment
For investors, understanding project structure, risk management, and capital security is essential.
- Prioritize debt-based investments for stronger repayment security.
- Choose projects with diversified capital stacks—not ones that depend entirely on EB-5 funds.
- Look for experienced regional centers with a proven track record of success.
By applying institutional-level due diligence and structuring projects with investor security in mind, CanAm continues to be a leader in the EB-5 industry—helping investors achieve U.S. residency while protecting their capital.
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