What are the business plan requirements for direct EB-5 investors?

The business plan presented by a direct EB-5 investor must provide evidence that the project will contribute to the U.S. economy and generate a minimum of 10 full-time positions per investor. Prospective investors can also refer to the standards outlined by the 1998 precedent court decision Matter of Ho. The constituents of a compliant business plan can be boiled down to five essential qualities. The information below speaks to only direct EB-5 projects. The necessary elements for the business plan of a project sponsored by a regional center differs in some aspects.

1. A Unambiguous Summary of the Project

United States Citizenship and Immigration Services (USCIS) will assess the EB-5 project’s overall outline. The business plan should entail a clear explanation of the project’s aim, agenda for growth, management schedule, and economic forecasting. Furthermore, the business plan should include details on its staff, including management, consultants, and contractors, and the project’s overall framework.

2. Marketing Strategy

The sponsor of a project must have a marketing strategy that is equally effective in generating profit and attracting EB-5 investors. The marketing strategy should be modified to cater to investors with different standards when searching for EB-5 projects. For direct EB-5 projects, investors should expect to have a greater amount of authority over how their funding is used and may be directly involved with the daily running of the business.

3. Job Creation

The EB-5 business plan must outline the number of positions that will be generated, describe the duties of each job, and map out the process of hiring. For direct EB-5 investment projects, only direct employment can count toward the overall job quota and must thus be visible on the payroll of the new commercial enterprise (NCE).

4. Economic Forecasts

A good EB-5 business plan should show a project’s potential to generate considerable profit. Economic forecasts, approximate revenue, and expenditure must be substantiated by credible third-party statistics. For direct EB-5 projects, economic forecasts should reflect the direct model’s smaller offering and subsequent higher returns.

5. Requisite Paperwork

An EB-5 business plan must prove that the project has acquired, or will acquire, all the necessary permits and authorizations to be run as a legitimate and lawful venture.