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New England Federal EB5 Regional Center (nefeb5.com). EB5 Program for Connecticut. Agenda. What is EB5 Investment? What EB5 investors look for in EB5 project? Benefits of EB5 financing New England Federal Regional Center General parameters of an attractive EB5 project
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New England Federal EB5 Regional Center (nefeb5.com) EB5 Program for Connecticut
Agenda • What is EB5 Investment? • What EB5 investors look for in EB5 project? • Benefits of EB5 financing • New England Federal Regional Center • General parameters of an attractive EB5 project • EB5 financing procedure • Structure of a typical EB5 project • Let us help you get EB5
What is EB5 Investment? • Created by US Congress in 1993 • Aiming to create jobs with foreign investment • and allowing immigration benefits • 10,000 EB5 visas available annually • Capital stays in project for as long as 5 years • Majority of EB5 investment through Regional • Center
What EB5 investors look for? • Successful approval of their Green Cards • Return of their capital in 5 years
Why Should I consider EB5 financing? • Money not otherwise obtainable • Projects not financeable • Projects w/ limited capital budgets • Early stage financing • Both private and public sectors can use EB5 • Money obtainable at below market rates • Investors focus more on immigration benefits • Money obtainable with flexible terms • Direct lending vs. equity investment
EB5 Increaingly Popular to Investors Source: United States Citizenship and Immigration Services
Chinese Investors Provide Most Capital Source: United States Citizenship and Immigration Services
New England Federal Regional Center • The 1st designated EB5 Regional Center in CT • Created by team with strong ties to China • Teamed with top-notch industry professionals • $500,000 vs. $1 mm investment threshold
General Parameters of EB5 Project • Developer equity approximately 20% of total cost • Complete projected capital stack at the start of fundraising • Clear 5 year exit strategy for EB-5 investors • Developer’s track record • Project team - General Contractor, architect, etc. • Proven market demand • Regulatory approvals • Groundbreaking projected 8-12 months in the future • Government support / participation (letters of support, tax • benefits, grants, or land contribution) • No need to meet all, the more, the better.
EB5 Financing Procedure • Determine project marketability and estimate job • creation (1-2 weeks) • Agreement between RC and Developer on EB5 amount • and terms (1-2 weeks) • Security offering documents and EB5 paperwork • (1-2 months) • Marketing and subscribing investors ($10-20 million for • 4-6 months) • Conditional Green Cards I-526 approval (6-10 months) • Upon approval, money becomes available
It's Never Too Late for EB5 • Consider EB5 in planning stage • Shovel ready -> Interim financing-> replaced by EB5 • Large project divided into phases for EB5
Sectors using EB5 financing most • Hotels / lodging / entertainment / restaurant • Senior housing / assisted living / nursing home • Medical / hospital • Residential / mixed use / retail / office • School / university / educational institute • Manufacturing / factory
EB5 Project Structure EB5 Investors Regional Center Capital Management NewCo LLC EB5 Capital Business Entity Receiving Capital & Create Jobs
For more information and contact: • www.nefeb5.com