- Design and implement EB-5 strategy for Project developer
- Assistance with structuring the EB-5 Project and Offering
- Participation in design and implementation of marketing strategy
- USCIS job creation and investor reporting
Issuer & Lender
- Formation of EB-5 Fund entities
- Source foreign capital
- Manage investor persons
- Provide EB-5 Capital financing for job creating purposes
- EB-5 Equity or Loan model
- Maximum financing based on Job Creation
- Management of EB-5 Fund entities
- Report information on project progress and implementation
- EB-5 Escrow, Fund and Loan/Equity administration
- Maintain USCIS, SEC, IRS compliance and reporting requirements
Targeted Employment Area
The first step for a Project’s evaluation is determining the minimum investment amount under the EB-5 Program. A Targeted Employment Area (TEA) may be a Rural Area or a High Unemployment Area as designated by the appropriate state authority. The Project’s site and contiguous census tracts are evaluated for TEA status to determine minimum EB-5 investor capital contribution amount. We utilize the latest published unemployment statistics to determine TEA eligibility.
The required EB-5 investment amount is lowered from $1 million to $500,000 dollars if the EB-5 project is conducted in a targeted employment area. In order to be designated as a TEA, the EB-5 project must be located in either a rural area or in a location that has high unemployment.
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Steps to EB-5 Funding
1. Obtain Project Information
In order for us to begin structuring an EB-5 program, it is necessary for us to build an in-depth understanding of the Project, its development timeline and its funding needs and timing. To accomplish this, we typically would need to review the following materials:
- Pro forma cash flow model
- Proposed sources and uses of funds
- Development timeline
- Business plan
- Market information
- Relevant risk factors to the project’s timing, funding, and feasibility
2. Term Sheet
Based on the documents in section 1) and additional follow-up with the Project team, we will then enter into negotiations to draft and execute a term sheet.
3. EB-5 Feasibility & Design
We work with the Project team to determine the timing, sizing, and marketability of an EB-5 loan. This involves the engagement and management of the required EB-5 professionals including an EB-5 economist, immigration attorney, securities attorney, EB-5 business plan writer, etc.
A number of documents prepared by several professional groups are required for a successful EB-5 Project submission. For well prepared Project, a typical timeline from data gathering to a Project ready to subscribe investors is 2-3 months. We have established channels and experienced EB-5 service providers who offer significant discounts due to volume of work provided by San Diego EB-5 Regional Center efforts.
- TEA Support Letter
- Economic Impact Analysis
- EB-5 Business Plan
- EB-5 Marketing Materials
- Regional Center Agreement
- Private Placement Memorandum
- Subscription Agreement
- Limited Partnership Agreement
- EB-5 Loan Agreement
- Escrow Agreement
Project owners are sent the EB-5 Regional Center information request (Request) and a protected online folder is created to manage and gather Project materials and shared with each party involved in real time.
4. EB-5 Market Promotion
After the project is Sponsored by the Regional Center, is fully documented, and the marketing materials are put in place, the Project is marketed abroad. It’s not a simple process, but with some guidance from experienced service providers, a developer can get their project into the market relatively quickly and cost effectively.
5. Fund Administration and Reporting
We will manage all fund administration and reporting requirements to the EB-5 investors, USCIS, IRS, SEC and other government agencies through trusted EB-5 Solutions. We will also assist you in developing a regular reporting system to fulfill all USCIS requirements for EB-5 job creation demonstration.