EB-5 Progam Project Requirements

Many great business ideas and projects have been presented to us as possible

EB-5 Visa program project opportunities. EB-5 funding is determined by three important factors: (1) job creation – each $500,000-$1M  investment must create 10 jobs within the region; and (2) finding investors willing to invest in the specific project – with their money at risk for five years; and (3)solid EB-5 exit strategies for investor liquidity-The investments should always include a targeted maturity date. In addition, The fund's operating agreement will includes a "sunset provision" which requires all investments to have a plan of liquidation after year 5 (possible extensions). This gives the Investor comfort knowing there is a planned mechanism for the return of their original investment. Once the EB-5 Investors have received their I-829 (removal of conditions), normally between 30 and 36 months, The Fund will begin opportunistic sales and refinance of the portfolio to provide liquidity to EB-5 Investors.

Project Criteria –

1. Project and job creation must be located within the USCIS approved operational Civil Address of the BP. Geographic expansion amendments may be possible.

2. Project developers must have an equity investment in project – a preferred

Developer equity percentage (capital stack of debt (via LOI from financial institution & equity) is from 60% to 70%. Investors look for this.

3. EB-5 investment required must be less than 30% -40% of project (maximum). Project is best positioned that it will be completed even without EB-5 funds.  The investment is an opportunity for foreign investor to receive green card while mitigating risk.

4. If it’s a building project you need to have building permits, business license, real property purchase agreement and the project should be shovel ready or in process of construction

5. 10 Full-Time direct must be created for each EB-5 investor. USCIS econometric or tables modeling are required to substantiate specific job creation. Job Creation determines number of investors and amount of EB-5 investment (10 (W-2) jobs per investor funds $500,000 or $1m in EB-5 investment).

6. An EB-5 investment at the $500,000 level must be (rural area/RA or targeted employment area/TEA –census tract with an unemployment rate of 150% that of the U.S. average) per investor. In some cases, the project may file to have a specific area designated by the Governor as a TEA.  Job creation is 10 jobs per investor.

7. If not in an RA or TEA, the EB-5 investment must $1,000,000 level per investor and may be project may be located anywhere. Very few agencies have access to this/we do. Job Creation is 10 jobs per investor.

8. Investor funds must be at risk for five years and must be “AT RISK.”

9. A reasonable exit strategy needs to be in place which provides a comfort level that the investor will get their investment back in five to eight years with interest from date of investment, with five years being a favored time period.

10. Project developer must agree to all terms of USCIS regulations and the EB-5 LLP contract-also agree all documents will meet SEC compliance and including a PPM.

11. Project developer must understand that in working with the United States

Citizenship and Immigration Services (USCIS), a government agency, the EB-5

approval processes is not linear and tedious – EB-5 is a “patient investment.”

12. The contracted number of jobs must be reached and within 24 months (and is to be documented to the USCIS by I-829 filing by investor . The project sponsor will be responsible for USCIS job creation/investor Compliance for the full five-years of the program.

Note: Just because a specific project does not meet the criteria established by CN EB-5 criteria does not mean that the business idea or project is not viable. It means that other forms of funding may be more appropriate at this time.