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How popular are medical research ventures in the EB-5 Program?

Is there a ready source of EB-5 investor interest in medical research? We are seeking $2million for a startup in a TEA in South Carolina and are curious about our chances of attracting investors.

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    Answered on

    Construction and real estate are still the most popular but, with the right structure and marketing, any project has the possibility of getting funding.

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    With an experienced team of EB-5 professionals, you can create an EB-5 compliant project. To make it marketable, you may analyze the current and successful EB-5 projects (today, the projects that are most successful in raising the EB-5 investors capital are construction projects), the investment and loan model, as well as the ability of the business to repay the loan. A third party fund administrator transfers the EB-5 funds only when they are satisfied that the EB-5 project is using the funds according to the EB-5 business plan.

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    EB-5 investors will be interested to know how their EB-5 funds will create the requisite minimum jobs under the EB-5 program to qualify them for green cards in the United States.

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    It is possible there are EB-5 investors interested in medical research. However, your business plan should show how each investment will create 10 full-time jobs. In addition, there are several additional facts that need to be provided to further address your questions, such as the location of the startup (which may determine how much an investor has to put down, either $1 million or $500,000), the level of collaboration/cooperation of your state''s agency which will help create jobs for the EB- 5 project, etc. Advisably, consult an EB-5 attorney and work with other professionals on your idea.

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    Answered on

    There is no ready source of EB-5 investors that are focused on medical research per se. The ability to raise $2million for a startup in a TEA in South Carolina may be possible through a variety of matters provided you can create 10 United States jobs for each investor over a 4-5 year period. There is a possibility that the minimum investment amount will be raised to $800,000 or maybe even close to $1million and, in that case, you would only be looking for two investors. Your ability to attract investors will also be based upon the structure of the deal, how much equity the project developers have in the deal and whether there is significant bank financing, as EB-5 investors do not want to be the primary investors, but always be minority investors. Any federal or state funding would also make the project more attractive. Most likely, it would be better to let immigration attorneys and the immigrant community in your area know of your project in order to find the 2, 3 or 4 investors that may be required.

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    Answered on

    Medical research could work but you must ensure that you will create 10 direct or indirect jobs per $500,000 investment. It is all about the job count.

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    Any venture NOT involved in real estate is not popular with EB-5 investors. EB-5 investors want a minimum risk of loss to their investment and a maximum chance of job creation. They are not looking to make a profit from their EB-5 investment. Medical research would be very difficult to market.

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    Answered on

    It may be advisable to work with an established Regional Center that has been approved to work with that industry in that State. They may be able to give you the marketing and investor network, and other valuable information.

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