GETTING IN TO EB-5

http://youtu.be/WwofywWyeV0

EB-5 REQUIREMENTS - IMMIGRANT INVESTOR VISA(8 CFR § 204.6 & 8 CFR § 216.6)

Minimum Investment of $1MM or $500K in a Targeted

Employment Area (TEA)

Investment in a New Commercial Enterprise (NCE) created

after 1990 (Regional Center option created in 1993)

Investment must create (or preserve) 10 qualifying jobs

GETTING IN TO EB-5

BENEFITS OF USING OUR PROFESSIONAL EB-5TEAM

THE EB-5 INVESTMENT VISA PROCESS IS COMPLICATED & TECHNICAL AS ARE THE REQUIRED COMPONENTS.

The EB-5 professional team

should include qualified legal

counsel, business plan

experts, economists, market

analysts & others for quick and

pain-free approvals!

EB-5PRE-PROJECT ASSESSMENT

Initial Jobs Analysis (how many jobs will be created?)

Initial Market Study with SWOT Analysis

Initial TEA Analysis

Assessment of Management Team

Consideration of Capital Stack & Sources of Funds

Assessment of Marketability

Financial Data Analysis (past performance, projections, etc.)

EB-5 REGIONAL CENTER CASE

Both DIRECT & INDIRECT jobs can be counted

towards job creation requirements

3,000 RC Green Cards available per year (country

quotas apply)

Regional Centers have various project affiliations

Can set up an RC or “rent” existing RC for new

projects

TYPICAL EB-5 STRUCTURE CHART (RC)

EB-5REGIONAL CENTER OPERATIONS Requires investment of $500,000 in approved Regional

Center (with appropriate Targeted Employment Area letter)

Both DIRECT & INDIRECT jobs can be counted towards

job creation requirements

Must prove lawful source of funds

3,000 RC Green Cards available per year (country

quotas apply)

Regional Centers have various project affiliations

Can set up own RC or “rent” an RC for new project

EB-5 DIRECT VS. REGIONAL CENTER INVESTMENT

DIRECT INVESTMENT:

Investment directly into NCE

Direct management of NCE by investor

Jobs directly created by NCE or a wholly-owned subsidiary(ies)

REGIONAL CENTER INVESTMENT:

NCE is a pooled investment fund that lends money to or invests

in a Project Company

Investor has limited duties and power

Jobs created directly or indirectly by Project Company

DIRECT EB-5 (Non-RC) SAMPLE STRUCTURE

EB-5PROCEDURE (RC or Direct)

Prepare EB-5 Package

Utilize services of EB-5 professionals (Business Plan, EIR, legal

documents, pro forma financials, Market Study)

File EB-5 petition (I-526)

Include documentation of investor’s lawful source of funds

Apply for immigrant visa at U.S. Consulate

Entire family can apply for conditional permanent residency

File petition for removal of conditions (unconditional GC)

Investment sustained and jobs created

EB-5JOB CREATION & QUALIFIED EMPLOYEES

JOB CREATION:DIRECT INVESTMENT:

Direct, full-time, permanent jobs

REGIONAL CENTER PROJECT INVESTMENT:

Direct, full-time, permanent jobs

Indirect and induced jobs – collaterally created

TROUBLED BUSINESS

10 jobs must be preserved, created, or a combination

QUALIFIED EMPLOYEES = U.S. CITIZENS, LPR’S & OTHER IMMIGRANT CLASSES

EB-5TARGETED EMPLOYMENT AREA

PRINCIPAL OPERATIONS LOCATED IN:

High Unemployment Area - unemployment rate is 150% of

national average

OR

Rural Area - outside of a Metropolitan Statistical Area and city/

town with 20,000+ population

ALLOWS FOR LOWER INVESTMENT THRESHOLD OF $500K

EB-5NEW COMMERCIAL ENTERPRISE

FOR-PROFIT BUSINESS

Established after November 29, 1990

OR

Established on or before November 29, 1990 and experiences:

• significant restructuring/reorganization

OR

• expansion to 140% of pre-investment net worth or number of

employees

…as a result of the investment

EB-5 BUSINESS PLAN TEAM ROLE

• Work collegially as member of overall EB-5 team

• Review existing business plan(s), marketing plan(s) and feasibility studies

• Coordinate and review all documents to be incorporated into BP

• Assist in structuring project as appropriate; make recommendations

• Identify missing documentation and information required for compliance

• Draft business plan compliant with immigration regulations and Matter of Ho

• Work with attorneys & economists to ensure documents consistent and accurate

• Provide initial and ongoing assessments re: overall credibility of the BP

“MATTER OF HO”MANDATORY REQUIREMENTS

In the 1998 precedent-setting USCIS case known as Matter of Ho, it was

determined that: “Most importantly, the Business Plan must be credible;” and

should specifically include the following elements:

1. Business description

2. Business structure

3. Marketing Plan with

target market analysis

4. Personnel experience

5. Competitive Analysis

6. Required Licenses & Permits

7. Staffing timetable for hiring

8. Job descriptions

9. Budget & financial projections

DESCRIPTION OF THE BUSINESS

Industry Description

Purpose, History, Operations, Personnel

Mission Statement

Future Plans

MARKETING PLAN WITH TARGET MARGET ANALYSIS

Vital to business success

Outlines how product or service will be promoted.

Strong Marketing Plan enables the business to get noticed by the “right” people = the target market

Important to determine HOW to reach the target market and which tools should be used

Include detailed MARKETING BUDGET

PERSONNEL EXPERIENCE

For Management Team – outline experience,

management philosophy, backgrounds, organizational

structure and functions - Brief bios can be used.

Outline functions for ALL Personnel – can use tables

and charts.

An Organizational Chart should be included.

COMPETITIVE ANALYSIS

Provide clear & comprehensive explanation of the competitive landscape – we recommend including a ‘COMPETITORS’ CHART.

Competitors generally analyzed in terms of:

a. prices charged;

b. number and kinds of job positions offered;

c. success of the businesses;

d. distinctions and similarities between competitors and proposed

business;

e. products and services offered; and

f. various other relevant factors

HIRING TIMETABLE& JOB DESCRIPTIONS

Hiring Timetable

Requisite jobs must be created within 2.5 years of the filing of the I-526

Hiring dates are critical and it is helpful to include a staffing chart todemonstrate

Sample Job Description

Title: President Number: 1 Proposed Hire Date: Q3 2014Proposed Salary $100,000Description: - list duties in point form

Desired key qualifications: - list desired qualifications, including: educational background, experience, specific required skills, etc.

ONLY RELEVANT IN REGIONAL CENTER CASES

BUDGET & FINANCIAL PROJECTIONS (Pro Forma)

5-year financial pro forma projections are required - must also show basis & assumptions for projections.

• Include info re: SOURCE of funds to start and support business (where are funds coming from eg: how many investors and how much invested, other sources of capital such as bank loans (capital stack)), + USE of funds for all capital being raised.

Currently based on generally accepted accounting principles (GAAP) and reasonable business models.

Assumptions, etc. should be backed up and sourced through verifiable industry standard sources.

THE REGIONAL CENTER’SBUSINESS PLANS

THE REGIONAL CENTER’S BUSINESS PLANSHOULD SPECIFICALLY INCLUDE:

1. Operational Plan

2. Organizational Structure

3. Management Team

4. Capitalization and Budget

5. Industry Categories

6. Geographic Area

7. Promotional Activities

8. Investment Model

9. Project Business Plan –Hypothetical, Actual, or Exemplar

10. Economic Impact and Job Creation Methodology

11. Draft Offering Documents

DIFFERENT OPTIONS FOR REGIONAL CENTER PROJECT BUSINESS PLAN

EXEMPLAR PROJECT BUSINESS PLAN REQUIREMENTS:

1. Business description

2. Business structure

3. Economic Predictions

4. Marketing Plan with target market analysis

5. Personnel experience

6. Competitive Analysis

7. Staffing timetable for hiring

8. Job descriptions

9. Budget & financial projections

10. Permits and Licensing

11. All contracts with professionals

12. Feasibility studies

13. Confirmation for inputs

EB-5 POST-PROJECT DUE DILIGENCE

Initial Jobs Analysis (how many jobs will be created?)

Initial Market Study with SWOT Analysis

Initial TEA Analysis

Assessment of Management Team

Consideration of Capital Stack & Sources of Funds

Assessment of Marketability

Analysis of Financial Data (past performance, projections, etc.)

CONTACT US

e-Council Inc.com

7050 W Palmetto Park Road, Ste.15-

322, Boca Raton, FL 33433

Email: info@ecouncilinc.com

Phone: 1.866.724.0085

Lauren A. Cohen, Esq. - Founder

© 2015 e-Council Inc.com

The information contained herein is not legal advice, and should not be treated

as such. You must not rely on the information on this website as an alternative to

legal advice from your attorney or other professional legal services provider.

e-Council Inc.’s multi-disciplinary team approach

incorporates a full range of complementary

customized services related to the EB-5 immigrant

investment process.

Diana L. Levy, Esq. –EB-5 Director