Document 168939

What is the EB-5 Visa Program?
The EB-5, or Immigrant Investor Program as it is officially known, was created by Congress in 1990
to stimulate the U.S. economy through job creation and capital investment by foreign investors.
The program allows qualifying foreign investors to obtain a green card and a path to U.S.
citizenship when they invest in an approved project that creates at least 10 U.S. jobs. The
program is administered by the United States Citizenship and Immigration Service (USCIS), a
division of the Office of Homeland Security. In 1993, Congress created the EB-5 Pilot Program
which allowed the establishment of Regional Centers such as ours to facilitate the development
of projects meeting the stringent USCIS criteria. The basic amount required to invest is $1 million,
although the amount is reduced to $500,000 per immigrant investor if the investment is made in
a defined rural area (RA) or a defined or designated high unemployment area (TEA – Targeted
Employment Area). The benefits of the EB-5 Visa immigration program are simple – the
American business receives start-up or expansion capital, and the immigrant investor qualifies for
the 5-year Green Card and a path to American Citizenship. The USCIS allocates 10,000 visas per
year to the EB-5 program. The EB-5 Visa program has already attracted billions of dollars into
emerging and expanding American businesses, especially important during depressed
economic times. The program was extended by Congress in 2012.
What Does Our Energize-ECI EB-5 Visa Regional Center Do?
As a USCIS certified EB-5 Regional Center (approved by the USCIS in August of 2011), we act as a
facilitator for reviewing (and marketing) possible EB-5 projects and sourcing high net worth
immigrant investors who wish to invest in an American business in order to obtain lawful
permanent residence through the USCIS EB-5 Green Card program. We pre-screen potential
investment projects prior to submission to USCIS. We monitor all investments and investors for
compliance with USCIS job creation criteria and program regulations for five years from
approval of project. We are a subsidiary of Energize-ECI, Inc., a multi-county regional economic
development partnership with a mission of creating and saving jobs, plus growing capital
investment in the area.
EB-5 Visa Program Provides Alien Investors with an Opportunity for U.S. Green Cards
The EB-5 category is an excellent opportunity for qualifying foreign nationals (and their spouses
and children under 21 years of age) to become permanent residents of the United States. EB-5
Visa permanent resident status involves making the required investment, paying the necessary
administrative fees, filing an I-526 petition, applying for an Immigrant Visa or apply for
Adjustment of Status in the U.S. after the “Conditional” Resident Status (Green Card) is granted.
The individual must wait one year and nine months to file an application to remove the
“conditional” status. With this application, documented evidence of the creation or saving of 10
direct (or indirect) jobs is required, as well as proof of the entire amount of the project
investment having been made. Upon review and approval of the application and related
documentation by the USCIS, the applicant is granted Permanent Resident status.
Step-by-Step Process Outline for EB-5 Visa Alien Investor Green Card Applicants
Step 1
Investor schedules an initial consultation (in person, by phone or by email – or
through their agent or legal representative) with the Energize-ECI EB-5 Visa
Regional Center. We will, in general, review the requirements with prospective
investors, explain the next steps, related costs, current investment project
opportunities and suggest that the prospect (if they have not already) retain
legal counsel experienced in EB-5 and immigration law. We will also advise the
potential investor to become aware of U.S. tax laws how EB-5 involvement may
affect their tax liabilities in the U.S. as a participant in the EB-5 program. An
EB-5 Investor Fee Schedule is available from our EB-5 Regional Center.
Step 2
Advise prospective investor of all currently available qualifying EB-5 investments
through our Regional Center. Also advise of upcoming opportunities in system.
Step 3
Discuss commitment of funds and required documentation to prove the
investment and tracing of the funds.
Step 4
Encourage the prospective investor to investigate whether the investment is of
initial interest to them, then encourage them and their advisors to conduct due
diligence on the prospective EB-5 project investment.
Step 5
Prospective investor makes the required capital investment and pays Regional
Center all administrative fees.
Step 6
Legal counsel for the investor files an I-526 Application (USCIS form I-526) with the
USCIS. This petition requests the USCIS to certify that the applicant and
investment are eligible for EB-5 status, paying all related application fees. The
Applicant pays all legal fees for this step directly to their legal counsel.
Step 7
Upon approval of the Petition, (a) if you are in the United States, prospect may
apply for Adjustment of Status to Conditional Resident Status; (b) if prospect is
abroad, he/she must wait for notice from the National Visa Center to prepare
documents for the Immigrant Visa Interview at the U.S. Consulate or Embassy in
his/her home country. The purpose of the Adjustment of Status or Immigrant Visa
Interview is to ensure the prospect is not subject to grounds of exclusion, e.g. a
criminal past, infectious diseases, etc. – or other reasons for disqualification.
Step 8
Once granted Conditional Resident Status, investor waits 21 months to reconfirm
that the full investment has been made and 10 jobs created (if required, based
on type of investment).
Step 9
Investor files application to remove Conditional Resident Status (form I-829)
between 21 to 24 months after Conditional Resident Status is approved.
Step 10
One Conditional Resident Status is removed, a full Green Card is granted for
Indefinite Permanent Resident Status and work permission in the United States.
U.S. Citizenship is possible 5 years later, upon satisfaction of residence and other
criteria.
Types of EB-5 Visa Business Investments Approved by the USCIS
The USCIS has approved three areas for possible EB-5 Visa project investment:
1. A new commercial enterprise
2. An enterprise which will expand to 140% (or greater) of pre-investment
net-worth or number of employees
3. A troubled enterprise in which jobs will be preserved
How Much EB-5 Visa Financing Can a Prospective Project Utilize?
Keep in mind that job creation is the key to the EB-5 program. Each investor must create 10
full-time U.S. jobs (through a Regional Center direct, indirect and induced jobs may be utilized))
for a minimum of two years. If each immigrant investor is at the $500,000 level - that means each
investor is responsible for the creation of 10 jobs. So if you are seeking $5 million in EB-5
investment funds, your project would need to be able to prove (through USCIS approved
econometric modeling) 100 jobs net – or 10 per each $500,000 investment. Our Regional Center
will only use about 80% of the total jobs created – providing a safety cushion in case full
employment – as per USCIS contract – is not achieved. So for a project borrowing $5 million in
EB-5 capital, the project should generate a total of more than 125 total jobs gross (which
through a Regional Center can count direct, indirect and induced jobs). A typical project will
only have a portion of its total financing package funded by EB-5, again dictated by the
number of jobs to be created.
EB-5 Visa Prospective Project Evaluation General Criteria
It is important for a business interested in possible EB-5 funding to submit a current business and
operational plan covering 5 years, so that we may better understand the business and evaluate
the suitability for EB-5 financing. The business plan should include the following:
• Business/project description and objectives
• Explanation of products and/or services
• Initial market analysis
• Description of target market and prospective customers
• Project location – street address, city and census tract (if known)
• Architectural and engineering costs
• Detailed construction budget
• Hard construction costs only – with contingency separated out
• Construction time-line and time-line for establishing business
• Materials required and supply sources (if applicable) any contracts executed for
materials supply or produc distribution, or real estate (if applicable)
• Business organizational structure and personnel’s experience
• Staffing requirements and timetable for hiring (including brief job descriptions).
Note jobs that are full-time. Required EB-5 jobs must remain in effect for at least two
years
• Marketing plan – five years +
• Detailed sales, costs, income projections – for 5 year period
• Operational pro-forma
• Total capitalization - sources of funds required to launch project
• Specific site, building and location needs
• Specific employee skills required at various levels
For more specific details, contact us (765.254.1420) fto receive a copy of our EB-5 project
qualification criteria worksheet. It will provide you with an opportunity to see how your project
and business plan needs to be structured in order to possibly qualify for EB-5 funding.
USCIS EB-5 Approved Econometric Models
Econometric analysis modeling programs such as RIMS II and IMPLAN are used to establish direct
and indirect job creation for a specific business type to determine total direct, indirect and
induced job creation – critical in determining how many investors can be included in EB-5
financing. We suggest that proposed projects consider obtaining a Preliminary Job Creation
Analysis to use econometric modeling to determine if the project is suitable for EB-5 funding –
and the potential number of jobs which could be created – based on project type, capital
investment and financials.
Geographic Coverage Area for EB-5 Regional Center Projects
Our Regional Center geographic service area has expanded to include adjacent and nearby
counties to Blackford, Delaware, Fayette, Grant, Henry, Jay, Madison, Randolph, Rush and
Wayne. We may review and approve EB-5 projects outside of this area within the state of
Indiana – providing they meet our criteria. Investors do not need to live in our area, although
we cordially invite them to reside in Indiana. The projects must be located and create jobs in
our service area.
Initial Industry Sectors for Our Regional Center
The initial industry sectors approved by the USCIS for our Regional Center included the groups
listed below. However, we may review and consider EB-5 projects with other NAICS Codes not
listed above if the project meets our qualifying criteria. Initial code sectors included:
1. NAICS 112511
Agriculture, Food Processing, Forestry, Fishing, Hunting
2. NAICS 230000
Construction
3. NAICS 334112
Manufacturing, Advanced Technologies
4. NAICS 511210
Information Technology, New Media
5. NAICS 484000
Transportation, Warehousing, Logistics
6. NAICS 325991
Green Manufacturing, Recycling, Alternative Energies
If you have a project you’d like for us to review to see if it may qualify for EB-5 funding, please
contact Energize-ECI EB-5 Visa Regional Center – 765.254.1420.
Current Projects with Investment Opportunities
At the present, we have four projects under contract which should be available for EB-5
investment in the second half of 2014. We also have additional projects which have undergone
our extensive qualification review and are nearing possible acceptance into our EB-5 program.
These projects may be available for foreign investors in 2015. If you are a foreign investor
interested in the EB-5 program (or represent a foreign investor), please contact us (765.254.1420)
to receive information about specific projects when the details are available.
EB-5 Investment Models
We research and study EB-5 approved investment types and models which provide the best
alternatives for our prospects and for job creation in East Central Indiana.
Loan Model Investor LLP loans the EB-5 funds to the project
Equity Model Investor obtains an equity position in the project
All of the projects moving through our program utilize the loan model structure for EB-5 investors.
The loan model is the most commonly utilized EB-5 investment model.
EB-5 Investment Levels in Each of the Energize-ECI, Inc. Counties
Blackford
Delaware
Fayette
Grant
Henry
Jay
Madison
Randolph
Rush
Wayne
Rural Area (RA)
Targeted Employment Areas (TEA)*
Non-TEA areas
Rural Area (RA)
Rural Area (RA)
City of Marion TEA Areas*
City of Marion - Non-TEA Areas
Rural Area (RA)
Rural Area (RA)
Targeted Employment Areas (TEA)*
Non-TEA Areas
Rural Area (RA)
Rural Area (RA)
Rural Area (RA)
City of Richmond TEA* Areas
City of Richmond – Non TEA Areas
$500,000
$500,000
$1,000,000
$500,000
$500,000
$500,000
$1,000,000
$500,000
$500,000
$500,000
$1,000,000
$500,000
$500,000
$500,000
$500,000
$1,000,000
*Contact the Regional Center for current specifics regarding TEAs
If you have a project in another Indiana county that isnot listed above, please contact us for
information about the investment level requirements $500,000 or $1 million per investor
Energize-ECI EB-5 Visa Regional Center Contact Information:
Mindy Kenworthy, President/CEO
Tom Farris, Regional Center Manager
Marlene Pulley, Compliance Officer
Email: [email protected]
Email: [email protected]
Email: [email protected]
Phone: 765.254.1420
Fax: 765.254.1450
Website: www.EnergizeEB5.com
www.energize-eci.org
Energize-ECI EB-5 Visa Regional Center
Mailing Address:
P.O. Box 1912
Muncie, In 47308-1912
Office Location:
316 W. Howard St.
Muncie, IN 47305
(EB-5 2013 Gen. Info. – Revised 6/25/14 – tlf)
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