Developers

The following information is to assist you in deciding if the EB-5 program is right for you.   

Remember, the project must create 10 FULL TIME jobs per INVESTOR, currently at a $500k minimum investment which will be going up soon to as much as $800,000 ~ $1,200,000.  When this happens, it will of course require less investors per project which will equal less jobs needed.

eb5 visa

Standard Process Overview

The process would start by us getting to know your business, the owners, your experience and track record with the type of Project you are seeking to develop, and the purposes for which you believe the use of EB-5 financing can play a role in the capital stack to bring an overall financially viable Project to market.  We will want to understand your capital structure and other critical financial information (e.g., construction pro forma, business plans and proposed use of the EB-5 Loan proceeds) for the project in which the EB-5 proceeds will be used. Once we have the required financial and other information, we will make a determination if your project is qualified for an investment within the EB-5 Program.  An Economist will prepare an economic study to predict the number of jobs to be created based on the independent budgets you provide to us. This will then guide us on the amount of money that may be loaned under the EB-5 Program.

 

 

Examples of some of the documents we will need to review are:

  • Project Description
  • Location of Proposed Project (Address and if applicable Census Tract)
  • Business Plan
  • Overall Project Costs
  • Sources & Uses of Funds (including an Estimate of EB-5 Funding)
  • Financial Feasibility Study
  • Market Analysis
  • A full description of the target market and competition
  • A five year Pro Forma of the Project
  • Your Business organization structure and key personnel
  • The Projects architects, general contractor, and all others involved in the Project
  • A construction timeline
  • Signed Commitments from other Primary financing sources
  • Security for EB-5 loan
  • Describe how EB-5 loan can be repaid at five-year maturity
  • Support letters if any from others for the Project

    Stage 1

    Our Regional Center reviews the following information provided by you:

    • Project Description including square footages, number of rooms (for hotel), number of beds (for assisted living) etc. of each component
    • Location of Proposed Project (Address and if applicable Census Tract)
    • Business Plan
    • Overall Project Costs
    • Operational Pro-forma (the more detail the better)
    • Sources & Uses of Funds (including an Estimate of EB-5 Funding)
    • If construction is expected to last 24 months or longer: Detailed Construction budget (if possible); Hard construction costs w/contingency separated out; Architectural and Engineering Costs; Construction Timeline.

    If we feel the proposed Project would fit the EB-5 program, we would collect $1,500 from you to order the preliminary Economic Analysis to predict the number of jobs to be created based on the information provided, which will in turn guide us in determining the amount of that your Project would qualify for under the EB-5 program.

     

    If you decide that the qualified amount of EB-5 funding meets your needs, we would need the rest of the information outlined above and we would collect the upfront fee of *$150,000, minus the $1,500 previously collected from you for the preliminary Economic Analysis, totaling $148,500.

     

    *This fee covers some of costs of preparing and submitting EB-5 qualified project documentation, including but not limited to:  Business Plan (BP) written by an experienced EB-5 business plan writer designed for USCIS and possibly SEC approval; Security Attorney fees for preparing a Private Placement Memorandum (PPM), Loan and Subscription Agreements, EB-5 investments are considered ‘Securities’, so the Securities and Exchange Commission (SEC) has to also approve the project which involves preparing compliant offering documents and having the USCIS required Economic Impact Analysis (EIA) report prepared by an Economist.

    Stage 2

    At this point we begin the process!  The above referenced legal/compliant documents are ordered; project due diligence is started by Regional Center and Broker-Dealer and marketing plans are started. 

    Stage 3

    Once the offering documents are complete (PPM, USCIS Business Plan and EIA), we can start our marketing campaign to look for foreign investors for your Project!

    Fees

    In addition to the $150,000 upfront fee, there is a 1% loan origination fee, the payment of which is incorporated into the monthly EB-5 loan payments.  The loan payments start upon the first tranche of investment funds allocated to the project, along with a 7% interest rate. These terms are completely detailed in the Term Sheet, Loan Agreement, and PPM as we must have complete transparency.