Since the 1990s, the EB-5 Immigrant Investor Program has helped funnel billions of dollars into the US economy, creating millions of jobs and phenomenal value. The renewed version of this program, which was signed into law early this year, has plenty to offer for small businesses in terms of cheap long-term financing, especially in rural areas or regions with high unemployment rates.
EB-5 funding is often easier to acquire and far more free from hassle than even most traditional bank and small business loans. All business owners have to do is showcase that their enterprise or project can create at least ten full-time jobs for US workers for each $1 million invested, or $500,000 in the case of rural or Targeted Employment Areas to qualify for this funding source.
If you’re a small business owner looking to get in on this frenzy, here are some tips, tricks, and best practices to get the ideal results.
Understand The System
Despite being around for 3 decades, the EB-5 program remains shrouded in secrecy among most Americans, as such, it is common for business owners to misunderstand its terms, requirements, and workings. While the first step is to dive deep into the fine print of this program, its laws, and regulations, nothing can beat working with a professional EB-5 partner with years of experience in this niche.
Even though the system is relatively straightforward, the overlapping of taxation, immigration, and securities laws can make this a delicate process, which can be disastrous when things go wrong. Dedicated firms working in this industry for years should lend support for small businesses with consulting, accounting, compliance, and more, even going so far as to provide a turnkey, effortless solution to gain funding.
Transparency Is Key
Even though millions of people fall head over heels for a chance at an American Green Card, the people who apply for an EB-5 visa are often wealthy individuals from the upper stratum of their respective countries.
Such individuals tend to better understand investments, risks, and returns, with even a whiff of deception likely to turn them off, especially given the sheer range of EB-5 projects and investment opportunities.
This makes it essential to be transparent on the risks, prospects and returns investors can expect from a project, while steering clear of misleading claims and marketing.
Once your direct EB-5 investment project has its business plans, permits, and rights in order, the next step is marketing it to potential investors. This has gotten increasingly arduous in recent years, with competition intensifying, and new commercial enterprises (NCEs) along with job-creation entities (JCEs) dime a dozen these days, all chasing after limited investment dollars.
To truly stand out, projects must consider investors’ need for security, transparency, and returns while best conveying the opportunity with effective marketing materials.
Here again, partnering with seasoned EB-5 visa consultants such as eb5visainvestments.com is seemingly the ideal course of action for a new project or enterprise.
Apply For An Exemplar Status
Another way to stand out from competitors while providing a great deal of certainty for investors is by gaining an exemplar status for your project by the US Citizenship and Immigration Services (USCIS). This is essentially a stamp of approval, making your project pre-approved while significantly speeding up the processing time for your investors.
Gaining this status for your project is far from straightforward and could take as much as two years, but in the end, this could translate into a significant upper hand against the competition. The USCIS maintains incredibly high standards in this regard and further imposes certain restrictions that come with their own rigidity; as a result, not all EB-5 projects even bother to seek an exemplar status.
The EB-5 immigrant investor program holds substantial value for the US economy and foreign immigrants. Despite its controversial nature, immigrants from the program have since become model residents, with a few minor exceptions, all the while creating businesses, jobs, and broad-based economic value wherever they reside within the US.
The revamped program and its extension this year highlight America’s interest in scouting foreign investors and its commitment to attracting the best and brightest from worldwide.