How do you connect an investor with worthy projects that are not through regional centers and that meet the EB-5 criteria for job creation and TEAs? I am an attorney with small business and start-up clients who would like to connect with investors and get funded through this program. Also, what is the average cost, legal and otherwise, to complete this process with USCIS? Finally, if you are located in a TEA-approved area, do you still have to submit economic data?
You may wish to contact a migration agency to promote your business to foreign direct investors. The filing fee for the I-526 petition by alien entrepreneur is currently $1,500. Additionally, you will need to submit a comprehensive business plan outlining the job creation timeline. Although an economic report is not required, you will still need to provide evidence that the investment qualifies for the reduced investment threshold of $500,000.00.
My firm has a robust practice for emerging growth companies, so we get the question frequently as to whether EB-5 might be a good source of capital for such companies. Unfortunately, the EB-5 program is not well suited to the working capital needs of small businesses or start-ups, which needs fall under the category of ''corporate finance'' rather than ''project finance.'' The one exception is foreign entrepreneurs who wish to deploy capital in start-up enterprises they found themselves. Such entrepreneurs would be bearing the early-stage risk in any case, and can take advantage of all of the jobs created in the enterprise, not just their share of a larger EB-5 pool. I authored an article for the upcoming AILA EB-5 treatise on EB-5 that explains why EB-5 is more appropriate for project finance than corporate finance. There are many resources on the internet about funding start-ups. We find some of the best moves are joining an incubator or coaching program and recruiting an advisory board of persons well-connected in the industry.
Your questions are very relevant. You may search the internet, approach EB-5 organizations for assistance, and call franchise organizations to determine if there are any credible franchise groups.
