Bay Creek: A Compelling Rural Project with a Senior EB-5 Loan

Bay Creek is a master-planned residential community in Cape Charles, Virginia, on the Chesapeake Bay.

As planned, the project will expand existing community infrastructure, sell 340 residential land lots, and build and sell 61 homes. The project is also expected to deliver key improvements to water and sewer systems.

Additionally, work on the project is expected to enhance existing amenities that define the Bay Creek lifestyle. The project will continue to refine Bay Creek’s two award-winning golf courses designed by golf legends Arnold Palmer and Jack Nicklaus. It will also improve the Bay Creek Club’s golf clubhouse. Residents will still enjoy access to two miles of private beaches and to Bay Creek’s 350-acre nature preserve, which is perfect for kayaking, fishing, and other water activities. And new recreational and lifestyle amenities are planned that will make Bay Creek a unique place to call home.

In this article, we discuss why Bay Creek’s features make it one of the most compelling rural EB-5 projects available.

Overview of the Bay Creek EB-5 Loan Project

Secured Loan Structure: The Bay Creek EB-5 investment is structured as a secured senior loan. The loan is secured by a first-priority mortgage on portions of the property.

Individual Four-Year Loan Term: Bay Creek’s EB-5 investors enjoy a four-year loan term, which is shorter than average. Each EB-5 investor’s loan term is separate from that of any other EB-5 investor. The four-year term aligns well with USCIS sustainment period requirements.

Rural TEA Designation: Bay Creek is in a rural targeted employment area (TEA). EB-5 investors who invest in TEA projects can do so at a lower amount of $800,000 as opposed to the $1,050,000 for investments outside of TEAs. Rural EB-5 investors also qualify for priority I-526E petition processing and gain access to rural visas set-asides. These rural visas make up 20% of all EB-5 visas each year.

Prime Location: The project is in Cape Charles, Virginia, on the Chesapeake Bay. It is just 45 minutes from Norfolk International Airport. Residents of Bay Creek enjoy access to a 350-acre nature preserve and two miles of private beaches.

Proven Sales and Market Demand: The community has been in development for several years. Under the prior ownership group, Bay Creek sold nearly 300 land lots and many homes.

Phased Delivery Reduces Risk: A key advantage of Bay Creek is its flexible, phased development approach, which allows the project to accelerate or slow down in response to market conditions. This approach helps ensure each component is delivered at the right time. As a result, EB-5 investors face less risk.

Significant Job Creation: The project is expected to generate 1,371 jobs from development and operations. This is well above what is needed for each EB-5 investor to qualify for a Green Card.

Experienced Developer: Bobby Masters has been the General Manager of Bay Creek since January 2020. In this role, he oversees all development, sales, and club operations at Bay Creek. Mr. Masters has worked on master-planned communities with extensive amenities for nearly 40 years. In that time, he has led development and sales at more than 15 communities with over 30,000 homes on more than 25,000 acres of land.

I-526E Approval Refund Guaranty: If an EB-5 investor’s Form I-526E is denied by USCIS, his or her $800,000 investment will be refunded within a defined period, subject to the terms of the guaranty.

Job Creation Guaranty: The project company has guaranteed that 100% of EB-5 funds will be used for qualified project costs and that the project will create at least 10 jobs per EB-5 investor.

Third-Party Fund Administration: PRXY Fund Services will serve as the fund administrator for Bay Creek. Third-party fund administration is vital for compliance with EB-5 rules. It also adds a layer of security and transparency for EB-5 investors. PRXY’s proprietary platform tracks and records all EB-5 draws and spending through the life of the project.

With these features, Bay Creek is a best-in-class rural EB-5 project that stands out in the EB-5 market today. While Bay Creek offers exceptional features, EB-5 investors must still consider the general risks of the EB-5 program. The next section explains how to evaluate and manage these risks.

Understanding Financial Risk for EB-5 Investors

EB-5 investors must make at-risk investments to qualify for their Green Cards. Under EB-5 program rules, for an investment to be considered “at risk,” the full $800,000 must be subject to gain or loss. This at-risk requirement means that no EB-5 investment can be entirely risk free.

While the EB-5 program does require some risk, the level of risk to EB-5 investors does not have to be high. Unfortunately, many EB-5 projects available today are riskier than they have to be. Even worse, many EB-5 investors do not even know how risky these projects are.

Most EB-5 projects lack basic financial protections, which increases the risk of loss for EB-5 investors. To make informed choices, investors must know both the general risks of the EB-5 program and the specific risks of the projects they are considering. When EB-5 investors invest in projects with more financial risk, they are more likely to lose their funds and have their immigrant petitions denied by USCIS.

To avoid riskier projects, EB-5 investors must do their own research. They should evaluate the track record of both the developer and the regional center sponsor. Even though the EB-5 program requires projects to transparently disclose risks, most EB-5 regional centers and projects do not treat transparency as a fundamental EB-5 investor right. As a result, many in the industry share the least information possible—and only when required to do so.

Each EB-5 project has its own risk profile. EB-5 investors should conduct careful research and weigh all risks before they invest. By understanding the risks and asking good questions, EB-5 investors can make informed decisions in line with their financial and immigration goals.

Understanding the EB-5 Rural TEA Designation

What Is a Rural TEA?

A TEA is an area that either is rural or has a high unemployment rate. A rural TEA is an area that is not in a metropolitan statistical area and not in a city that has a population of 20,000 or more.

Benefits of Choosing a Project in a Rural TEA

EB-5 projects in rural TEAs offer EB-5 investors several key benefits.

Reduced Investment Amount: The standard EB-5 investment is $1,050,000. Investments in projects that are in TEAs, however, qualify at a lower amount of $800,000.

Access to Set-Aside EB-5 Visas: Investing in a rural TEA project qualifies EB-5 investors for set-aside EB-5 visas. Under the EB-5 Reform and Integrity Act of 2022, 32% of EB-5 visas are reserved each year. These reserved visas are divided into three categories, the largest being rural at 20% of all annual EB-5 visas. Set-aside visas are not currently affected by backlogs (known as visa retrogression), which is a key issue for investors from countries with high demand for EB-5 visas like China and India. With no visa backlogs, rural EB-5 investors often experience shorter wait times and can immigrate to the United States more quickly compared to those who apply for unreserved visas.

Priority Processing for Form I-526E: EB-5 investors in rural TEA projects qualify for priority processing of Form I-526E. This means USCIS processes the I-526E petitions of rural EB-5 investors ahead of others. As a result, many rural EB-5 investors have their petitions processed in months rather than years.

Evaluating Rural EB-5 Projects

EB-5 investors should thoroughly research projects before investing. Even basic due diligence can help investors avoid risky projects. Conducting research before investing is one of the simplest and most important ways for EB-5 investors to improve the likelihood that they will be repaid and obtain their Green Cards.

One key item to look for is the amount of money the developer has invested in the project. A developer that has invested nothing has nothing to lose and is not as motivated to succeed. The less developer equity in a project, the more risk EB-5 investors face.

As part of their research, EB-5 investors should also look at projects’ regional center sponsors. Projects that are sponsored by trusted regional centers are much less risky. EB-5 investors should look for regional centers that are led by experienced professionals who have track records of success and a deep knowledge of the EB-5 program’s rules. And if a regional center is affiliated with the project’s developer in some way, this relationship should be disclosed in the project’s documents.

The EB-5 Reform and Integrity Act of 2022 added new rules for reporting and compliance. Because USCIS has not yet provided guidance on all of these changes, EB-5 investors should look for projects sponsored by regional centers that have experience navigating changes to the EB-5 program. EB-5 investors face higher risk when they invest in projects sponsored by inexperienced or poorly managed regional centers, as these sponsors may not be able to respond quickly to any changes in the program.

Evaluating the Bay Creek EB-5 Project Is Easy

EB5AN strives to make it as easy as we can for EB-5 investors to research the Bay Creek EB-5 project. We give potential investors full access to the project’s financial documents and encourage them to visit the project site. A site visit allows potential investors to confirm our claims by directly observing construction progress and operation. The regional center team is happy to answer any questions a prospective EB-5 investor may have.

Bay Creek Is a Best-in-Class Rural EB-5 Project

Bay Creek is a compelling rural EB-5 project. It has a host of best-in-class features that help reduce the risks faced by EB-5 investors. With a secured senior EB-5 loan and the benefits of rural TEA designation, Bay Creek distinguishes itself as one of the most attractive low-risk EB-5 opportunities available today.

Secured Loan Structure and Collateral

The Bay Creek EB-5 investment is structured as a secured senior loan. The loan is backed by a first-priority mortgage on portions of the property.

Individual Four-Year Loan Term

The project’s loan is divided into multiple tranches—one for each EB-5 investor. Each tranche has its own four-year term that is independent from the loan terms of the other tranches. Loans split into tranches with individual loan terms are rare in the EB-5 space. And a four-year term is shorter than typical.

Rural TEA Designation

Bay Creek is in a rural TEA. As a rural project, its EB-5 investors are able to invest $800,000 instead of the standard $1,050,000. Investors in rural TEA projects also benefit from priority processing of their I-526E petitions and access to the 20% rural set-aside visa category.

Significant EB-5 Job Creation

A key EB-5 program requirement is that each EB-5 investment must create at least 10 qualifying jobs for U.S. workers. Because Bay Creek is a regional center project, it can count both direct and indirect jobs created through spending on construction.

To support up to 50 EB-5 investors, the project must create at least 500 jobs. When completed, the project is expected to generate 1,371 EB-5–eligible jobs, which is more than 27 jobs per investor and well above the requirement.

Experienced Developer

Bay Creek is being developed under the leadership of Bobby Masters, who has served as the General Manager of Bay Creek since January 2020. In this role, he oversees all development, sales, and club operations at Bay Creek. Mr. Masters has worked on master-planned communities with extensive amenities for nearly 40 years. In that time, he has led development and sales at more than 15 communities with over 30,000 homes on more than 25,000 acres of land.

Mr. Masters has a proven record of managing golf courses, clubhouses, aquatic centers, marinas, food and beverage outlets, hospitality operations, and homeowner association management groups.

A Regional Center With a Proven Record

EB5AN is the regional center sponsor for Bay Creek. EB5AN has facilitated over $1.0 billion in EB-5 investment, supporting projects with total development costs exceeding $7.2 billion.

Over the past decade, EB5AN has helped more than 2,700 immigrant families from over 70 countries and regions relocate to the United States through its low-risk, high-quality EB-5 investment offerings. All adjudicated regional center–sponsored projects offered by EB5AN have been approved by USCIS.

I-526E Approval Refund Guaranty

If an EB-5 investor’s I-526E petition is denied by USCIS, his or her $800,000 will be refunded within a defined period, subject to the terms of the guaranty.

Job Creation Guaranty

The project company has guaranteed that 100% of EB-5 funds will be used for qualified project costs and that the project will create at least 10 jobs per EB-5 investor. This assurance reduces the risk that an investor’s petition will be denied due to a shortfall in job creation.

Bay Creek: A Unique, Low-Risk Rural EB-5 Project

No EB-5 investment is completely risk free. However, Bay Creek has been structured with investor protections and independent oversight at its core. While risk is inherent to the EB-5 program, EB-5 projects do not have to carry high levels of risk.

Bay Creek offers a compelling set of safeguards: loan security, job creation and I-526E approval refund guaranties, rural TEA benefits, and experienced project management. These features help reduce risk for EB-5 investors and increase the likelihood of their immigration and financial success.

For more information on the Bay Creek rural EB-5 project or to explore additional EB-5 investment opportunities, please schedule a one-on-one call with EB5AN.