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How can our company qualify to receive EB-5 funds?

We are healthcare software company. We started our project three years back. We just finished the design/development and are in field test mode. We will finish our beta testing in a month or so. We will be announcing the system to our potential market by middle of Aug in a trade show. We''ve spend over 730k in design/development of this system. Now at the marketing stage we need funding to go forward. We do have some more money, but not enough to launch the way we want to. I heard about the EB-5 program through a consultant who helped us with investment groups. I would like to know more about it, also want to see if this type of funding is right for us. We will be hiring more than 10 full-time employees. Let me know if this is something you guys can help me start.

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    You may choose to have a direct investor since the investment of $1 million will meet your needs. However, please be aware that under EB-5 visa direct investment, the investor must be active in the day-to-day management of the business. You may also choose to register as a regional center if it meets all federal requirements. Through a regional center, you must be in a TEA and hire an economist to determine the amount of indirect and induced jobs your project will bring to the area.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    If your company/business is a new commercial enterprise that can create 10 new/full-time jobs for U.S. workers per each invested $1million (or $500,000 if business is located in Targeted Employment Area), then your business would qualify for EB-5 purposes. The next step is the critical stage where you will need to market your business to foreign national investors seeking EB-5 Immigrant Investor visas. It is critical to align with experienced experts here to properly market and also for the visa processing, since the Investors will want assurances for their money.

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    Jeffrey E Campion

    Immigration Attorney
    Answered on

    I would recommend your attending and EB-5 seminar that is put on by EB5investors.com or another source so that you can obtain more information.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    We can certainly discuss the options if you want to give me a call. Your situation is unique, just off hand you can do one of two things 1.) Establish a Regional Center or 2.) Have someone do a direct investment.

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    Lei Jiang

    Immigration Attorney
    Answered on

    You can structure this as a direct EB5 investment or an EB-5 regional center. You really should consult an immigration attorney.

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    Rohit Kapuria

    Immigration Attorney
    Answered on

    It sounds like a direct, as opposed to a regional center based, EB-5 investment strategy will be best suited for you. Before you proceed, there are a few things you should determine. A) Does your company''s location fall within a targeted employment area? If it does, then the investor would only need to pour $500,000, instead of $1 million, into your project. The obvious advantage is that this sum is easier to market to potential investors. B) Do you have access to investors and/or agents that can help market your project to investors? While there are many foreign investors out there, unless you have ready access to them, you will have to go through an intermediary. C) If your company will hire more than 10 but less than 20 full time employees (one investor per 10 jobs), will a $500,000/$1 million investment be sufficient to launch the firm the way you would like? D) Have you finalized your other sources of capital? These are just a few questions to ask before proceeding down the EB-5 road.

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    John Tishler

    Securities Attorney
    Answered on

    An EB-5 feasibility assessment for your project involves determining if your project will be in a targeted employment area (TEA) and therefore eligible for the $500,000 investment level, determining whether your project can be a direct program without regional center support, and if not (because you need indirect and induced jobs), identifying a regional center to partner with or considering applying for your own regional center, determining whether your program can support the job creation necessary for the money you wish to raise (via speaking with an experienced EB-5 economist), and lastly, determining if the project is marketable to potential foreign investors. Your description raises concerns about marketability. We have found that EB-5 programs are marketable for assets that have a predictable cash flow and therefore are appropriate for traditional senior debt and mezzanine debt sources. Examples are hotels, manufacturing plants, convention centers, recreation facilities, energy projects and motion pictures. EB-5 investors are not looking for large returns and they therefore do not wish to accept large risk. They are looking for certainty on their ability to obtain a visa and assurance (but not a guarantee, which is not permitted) that they will get their money back after 5-7 years. EB-5 is seldom if ever appropriate for an emerging growth investment where the returns could be large but the risk of loss of capital is high. In my experience, most investments in software development and marketing fall into the emerging growth category and will not be marketable to EB-5 investors. However, if your software has an established customer base that is highly likely to purchase the software and produce recurring revenue, the project could be marketable. If the project is marketable, then we would look at the other feasibility criteria identified above.

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    Bill Travis Klein

    Immigration Attorney
    Answered on

    You can look for active partners in your business who will contribute the required amount under the EB-5 Program. You can also register as a regional center provided you have set up the requirments under the SEC (Security Exchange Commssion) and market to investors. Either way, first, you will need to develop a business plan to fit the type of investors you want. Prior to that, it would be beneficial to consult with an Immigration Attorney who can walk you through the process and the options that are available. Once you understand the process, the options available and developed your business plan, you should consult with an Immigration Attorney again to review your plan for a sanity check and issues to beware of.

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