The benefits to qualifying projects that participate in the EB-5 Program are numerous. In today’s ever changing economic landscape, participation in the NVEB-5 can be a positive option for businesses looking to secure additional funding to expand or new ventures looking to start up. Some of the many benefits include:
$900,000 Equity Investment in NVEB-5
If located in a Targeted Employment Area (TEA—high unemployment and/or Rural Area (RA))*, approved projects in the NVEB-5 require a minimum investment of $900,000. The project company determines if investments are in the form of a direct equity investment or a structured term loan.
TEA Definition: High-Unemployment Areas
Under the new regulations published by the U.S. Department of Homeland Security and went into effective on November 21, 2019, a Targeted Employment Area (TEA) can be either 1) a rural area or 2) a high-unemployment area.
According to U.S. Citizenship and Immigration Services (USCIS):
A high-unemployment area may be any of the following areas, if that area is where the new commercial enterprise is principally doing business and the area has experienced an average unemployment rate of at least 150% of the national average unemployment rate:
- An MSA (metropolitan statistical area);
- A specific county in an MSA;
- A county in which a city or town with a population of 20,000 or more is located; or
- A city or town with a population of 20,000 or more outside of an MSA.
A high-unemployment area may also consist of the census tract or contiguous census tracts in which the new commercial enterprise is principally doing business, which may include any or all directly adjacent census tracts, if the weighted average unemployment for the specified area based on the labor force employment measure for each tract is 150% of the national unemployment average.
It is important to note that, USCIS allows for a high unemployment area to be an area comprised of the project tract(s) and any or all of the directly adjacent tract(s), if the weighted average of the unemployment rate for all included tracts is at least 150% of the national average. With that, even if one census tract does not independently qualify as a TEA but it “touches” one or more high-unemployment tract(s), it could still meet the new TEA criteria as long as the weighted average unemployment rate of the entire area that consist of both the project tract and the directly adjacent census tract(s) is 150% or higher of the national average.*
*Source: IIUSA Invest In The USA
Flexible Terms and Structures
For Investment as a loan, projects may be structured on an interest only basis for the life of the loan, with deferred payment of principal balance of the loan on the 7th +/- anniversary of the funds being lent. Unlike traditional commercial banks or other finance sources, additional, flexible terms may be available.
Direct Access to International Investors
The NVEB-5 Regional Center assists companies in gaining direct access to foreign investors through our established international partnerships and relationships.
Zero Long-Term Equity Loss
NVEB-5 investors’ goals are:
- Invest in a financially viable job creating activity
- Obtain permanent US residency
- Reasonable expectation of repayment of the principal investment
- Some modest rate of return on their investment.
- Unlike a typical equity investor, NVEB-5 investors are generally more focused on an exit within five to 7 years from release of funds into the project, rather than high return on their investment–the investor’s focus is to qualify to receive significant immigration benefits.
Professional and Expert Coordination
The NVEB-5 Regional Center coordinates all communication with EB-5 investors, agents, services providers, and the USCIS. Our staff is knowledgeable, helpful and friendly. We are here to help the investor have a positive experience.
Business Professionals and New Markets:
Many EB-5 investors are successful business professionals that can bring to the company/project developer not only their experience conducting business in international markets, but also their international network of other business professionals. The structure encourages a win-win outcome for both the business and its investors with the important added benefit to the community of increased job creation.