Projects: Growing Business that creates jobs thru Foreign Capital Investment
The NVEB-5 Regional Center provides regional companies and project developers with an exceptional opportunity to grow their business or launch a new venture that creates U.S. jobs by attracting foreign capital investment. There are many benefits to becoming an EB-5 project including capital investment, flexible and favorable terms, access to international investors, exposure to new markets and talent pools as well as expert coordination, and no long-term loss of equity,. (Please visit: Benefits for more information).
All projects are subjected to a stringent screening, comprehensive background check and thorough due diligence process.*
Initiate the Process
New companies, expanding companies and new project developers will be pre-screened by NVEB-5 staff. To initiate the process, please contact us. Upon preliminary approval by NVEB-5, the comprehensive application process will begin and include:
- Business Plan
A written five (+) year business plan detailing how the business seeks to achieve its goals. The business plan should include: marketing information and analysis, financial pro-formas (including equity and loans), estimated return on investment, operational objectives and viewpoint. Additionally the plan should include geographic location and focus of activities. This will be provided to EB-5 investors prior to investment to afford a well-rounded understanding of the company they are reviewing for investments.
- Financing Structure
Potential projects are required to identify all sources of financing in addition to EB-5 funding. This transparency enables EB-5 investors to fully evaluate the viability and extent of capital diversity and share of capital at risk of the projects they are reviewing.
- Private Placement Memorandum (PPM)
A PPM is a legal document stating the objectives, risks, and terms of investment involved with a private offering of an investment opportunity. This includes items such as financial projections, management biographies, detailed description of the business, general and specific risk factors, etc. An offering memorandum serves to provide buyers with all material information on the investment opportunity and to protect the sellers from the liability associated with selling unregistered securities.
- Econometric Analysis (How jobs will be created)
The main focus of the EB-5 program is to create U.S. jobs. NVEB-5 adheres to USCIS requirements which specify that the economic modeling includes analysis showing that within a two year period of the investment, a combined minimum of 10 permanent, full-time direct and indirect/induced jobs must be created or protected for each $900,000 investment in a TEA (Targeted Employment Area—high unemployment or Rural Area (RA))** or $1,800,000 investment in a metro area.
The U.S. Citizenship and Immigration Services (USCIS) accepts all legitimate and verifiable Input/Output Economic analysis models. The two most common of these models are IMPLAN and RIMS II, though other Input/Output Models (e.g., REDYN) are also acceptable. This information is compiled to assist in evaluating the viability and sustainability of the project and job creation estimates.
*Additional documents may be required during the project review and upon approval.
**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