New England Federal EB5 Regional Center (nefeb5)
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Transcript of New England Federal EB5 Regional Center (nefeb5)
New England Federal EB5Regional Center (nefeb5.com)
EB5 Program for Connecticut
Agenda
• What is EB5 Investment?• What EB5 investors look for in EB5 project?• Benefits of EB5 financing • New England Federal Regional Center• General parameters of an attractive EB5 project• EB5 financing procedure• Structure of a typical EB5 project• Let us help you get EB5
What is EB5 Investment?• Created by US Congress in 1993
• Aiming to create jobs with foreign investment and allowing immigration benefits
• 10,000 EB5 visas available annually
• Capital stays in project for as long as 5 years
• Majority of EB5 investment through Regional Center
What EB5 investors look for?
• Successful approval of their Green Cards
• Return of their capital in 5 years
Why Should I consider EB5 financing?
• Money not otherwise obtainable Projects not financeable Projects w/ limited capital budgets Early stage financing Both private and public sectors can use EB5
• Money obtainable at below market rates Investors focus more on immigration benefits
• Money obtainable with flexible terms Direct lending vs. equity investment
EB5 Increaingly Popular to Investors
Fiscal Year I-526 Approvals Est. EB5 Capital
2007 473 $236,500,000
2008 640 $320,000,000
2009 1262 $631,000,000
2010 1369 $684,500,000
2011 1563 $781,500,000
2012 3677 $1,838,500,000
Source: United States Citizenship and Immigration Services
Chinese Investors Provide Most Capital
Country of Origin
# of EB5 Visas Issued 2012
# of total EB5 visas issued 2012
China 6124 80%
South Korea 447 6%
Taiwan 148 2%
Venezuela 109 1%
Iran 81 1%
Other countries 732 10%
Total 7641 100%
Source: United States Citizenship and Immigration Services
New England Federal Regional Center
• The 1st designated EB5 Regional Center in CT
• Created by team with strong ties to China
• Teamed with top-notch industry professionals
• $500,000 vs. $1 mm investment threshold
General Parameters of EB5 Project
• Developer equity approximately 20% of total cost• Complete projected capital stack at the start of fundraising• Clear 5 year exit strategy for EB-5 investors• Developer’s track record • Project team - General Contractor, architect, etc.• Proven market demand • Regulatory approvals• Groundbreaking projected 8-12 months in the future• Government support / participation (letters of support, tax benefits, grants, or land contribution)
No need to meet all, the more, the better.
EB5 Financing Procedure• Determine project marketability and estimate job creation (1-2 weeks)• Agreement between RC and Developer on EB5 amount and terms (1-2 weeks)• Security offering documents and EB5 paperwork (1-2 months)• Marketing and subscribing investors ($10-20 million for 4-6 months)• Conditional Green Cards I-526 approval (6-10 months)
Upon approval, money becomes available
It's Never Too Late for EB5
• Consider EB5 in planning stage
• Shovel ready -> Interim financing-> replaced by EB5
• Large project divided into phases for EB5
Sectors using EB5 financing most
• Hotels / lodging / entertainment / restaurant• Senior housing / assisted living / nursing home • Medical / hospital• Residential / mixed use / retail / office • School / university / educational institute• Manufacturing / factory
EB5 Project Structure
EB5 Investors Regional Center
NewCo LLC
Business Entity Receiving Capital & Create Jobs
Capital Management
EB5 Capital
For more information and contact:
www.nefeb5.com