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$30 million loan to help revive cattle project with EB-5 connections
A South Dakota banking panel has cleared the way for a short-term $30 million loan to help revive a struggling project, which had previously received investment from the EB-5 visa program.
The loan will go to the construction of the proposed Northern Beef Packers (NBP) plant in Aberdeen, South Dakota, according to the Daily Republic.
During the 15-minute South Dakota Banking Commission hearing, the loan was described as the last important step to rejuvenate the flagging project, which is a part Governor Mike Rounds’ South Dakota Certified program. This program intends to track cattle from the feed lot to the butcher shop in order to ensure quality.
Wai Yee Christine Ma, a resident of Hong Kong, is the director of Anvil Asia partners, which is the parent company of the Epoch Star Limited, the entity that is providing the $30 million loan.
In an affidavit filed at the hearing for Ma, she said that the EB-5 visa program provided some of the original funding for the project.
The EB-5 visa program gives foreign nationals an opportunity to earn U.S. green cards by investing $1 million in an American business. If that investment leads to the creation or preservation of 10 jobs then the investor becomes eligible for a green card.
Ma explained in her affidavit the challenges facing the project.
“It is further my understanding that for many reasons construction of the plant has stopped, the project is a financial failure, the benefits and status of the original EB-5 investors is in some jeopardy, many liens have been filed on the project and NBP does not have the financial wherewithal to complete the project, absent a multiplicity of financial arrangements of which Epoch’s participation is part,” she said.
However, Ma was more positive when talking about the additional EB-5 visa program participants that have been brought on board.
“It is my further understanding that a second ‘wave’ of EB-5 investors has been obtained, and a number of other incentives and financial vehicles have been assembled, some involving the state of South Dakota,” she continued. “In any event, none of these financial sources provides the necessary funding to complete construction of NBP’s plant and to get it operational. It is estimated that approximately $30 million will be needed for that purpose.”
Specifically, the banking panel cleared the way for the $30 million by voting 4-0 that Epoch Star Limited does not need a state license to make the loan.