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What should be included in an EB-5 business plan?

I know that the business plan is an important component when submitting the I-526 application. However, I have not been able to figure out exactly what the business plan is supposed to include. What are the essential parts of an EB-5 business plan? Will a business plan for a regional center project be different than one for a direct investment project?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    There are clear explanations in precedent case law, Matter of Ho, and recent USCIS memorandum.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    The business plan should be Matter of Ho compliant; you may want to review that case to get a better grasp of the requisites.

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    Aleksandr Troyb

    Immigration Attorney
    Answered on

    Unfortunately, it is impossible to answer your question in a short post. Each business plan differs based upon the business you are forming or expanding. There are certain sections that are going to need to be included for one industry, that do not need to be included for another. These plans are so "fact-specific" that there are entire companies that specialize in preparing business plans for EB-5 petitions. I would recommend that you speak with your immigration attorney and get their input with regard to the business plan. As for regional center versus direct investment business plans - they are different. If you are going to invest in a regional center, you may want to reach out to the center representative (or, better yet, the attorney handling your petition) to get documents from the regional center.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    An EB-5 business plan needs to be compliant with USCIS rules, regulations, and policies, as well as a list of specific requirements that have been designated in EB-5 case law.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    The AAO precedent decision in Matter of Ho contains the requirements for a comprehensive business plan. Also, there is a clear explanation in the USCIS policy memo of May 30, 2013.

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    Oliver Huiyue Qiu

    Immigration Attorney
    Answered on

    A business plan geared towards the EB-5 purpose is generally called a Matter of Ho compliant business plan. The plan should include a description of the business; the business''s objectives; a market analysis including names of competing businesses and their relative strengths and weaknesses; a comparison of the competition''s products and pricing structures; a description of the target market and prospective customers; a description of any manufacturing or production processes, materials required and supply sources; details of any contracts executed; marketing strategy including pricing, advertising, and servicing; organizational structure; and sales, cost and income projections and details of the bases therefore. In addition, specifically with respect to employment, the business plan must set forth the company''s personnel experience, staffing requirements, job descriptions for all positions, and a timetable for hiring within the next two years.

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    Ian E Scott

    Immigration Attorney
    Answered on

    The Immigration Appeals Board Case, Matter of Ho, sets out all of the key aspects that must be in an EB-5 business plan and if you review the case you will see that there are no real surprises. That is, all of the factors that Matter of Ho says should be in your business plan are really things that any good business plan developer would include. According to the case, when you file a I-526 petition, an EB-5 investor must submit a credible comprehensive business plan demonstrating the following: 1. A description of the business, what the business produces or the services provided and the objectives of the business. In addition, where relevant or applicable, the plan should describe the manufacturing or production process, the inputs required, and the supply sources. 2. A comprehensive market analysis that includes an assessment of competitors (names and why you can compete with them) along with the strengths and weaknesses of these competitors. This has to be a detailed analysis that includes financial data and looks at the competitor''s product, service and pricing structure. 3. You must describe your target market and who you expect to buy your product or service and why. In addition, you should also detail any business that you have already secured and describe executed contracts. To the extent contracts have been executed, the specific terms and detail should be included in the plan. 4. Where applicable, you should also outline in the plan that the company has received or will receive project specific permits and/ or licenses. 5. You must provide a comprehensive overview of the marketing strategy of the business, including pricing, advertising, and how you will provide your products or services. You should detail the exact forms of marketing (eg. Google Ads, newspapers, etc.) as well as the strategy. 6. A detailed personnel plan is also required that outlines the business''s organizational structure and personnel. You should detail both current and future hires along with pay, job description and benefits. 7. Your plan must include a significant amount of financial data including sales, cost/expenses, balance sheet, cash flow, and income projections. You should also include all relevant assumptions.

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    Sufen Hilf

    Immigration Attorney
    Answered on

    There are 10 basic requirements according to USCIS: 1) A description of the business, its products, services and objectives; 2) A market analysis including: a) names of competing businesses and their strengths and weaknesses, b) a comparison of the competition''s products and pricing structures, and c) a description of the target market/prospective customers of the new commercial enterprise; 3) Confirmation and listing that the company has received or is in the process of applying for project specific permits and/ or licenses; 4) the EB-5 business plan should describe the manufacturing /production process, the materials required, and the supply sources if relevant; 5) detail any contracts executed for the supply of materials and/or the distribution of products; 6) provide an overview of the marketing strategy of the business, including pricing, advertising, and servicing; 7) the business plan should outline the business''s organizational structure and personnel experience; 8) it also must explain the business''s staffing requirements and contain a timetable for hiring and job descriptions for all positions; 9) contain sales, cost, and income projections and detail the bases and 10) finally, it must be credible.

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    Lauren Cohen

    Immigration Attorney
    Answered on

    A business plan submitted with an EB-5 petition must comply with Matter of Ho, although there are differences for projects associated with regional centers as opposed to those for direct investments. Generally, however, the required components are: -Description of the Business, -Business Structure, -Marketing Plan with target market analysis, -Competitive analysis, -Personnel Experience, -Required Licenses and Permits, -Staffing Timetable for Hiring, -Job Descriptions, -Budget and Financial Projections. An EB-5 business plan differs greatly from the more traditional model. Consultation with a professional business plan company is strongly recommended to avoid costly RFEs or potential denials.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    The most important, added component of the EB-5 business plan is showing the job creation requirement to comply with the program. Since the regional center could utilize the indirect job creation to satisfy the job creation whereas the direct investment could only have direct jobs created, the business plan could be significantly different.

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    Ed Beshara

    Immigration Attorney
    Answered on

    An EB-5 business plan should be Matter of Ho compliant. There are differences between a direct and regional center project business plan.

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