EB-5 Business Plans & Capital Funding Proposals...
business plans, commercial real estate capital funding
placement offering memoranda drafts and a host of supporting due diligence documents
for new construction commercial income-producing projects and programs throughout North
America and the Caribbean Basin. Rainmaker Underwriting has decades of operating
experience and we have completed literally hundreds upon hundreds of assignments
and EB-5 business plans are part of our routine tasking.
compliant business plans require specific elements to be completed in order to
be acceptable to the USCIS for the purposes of approving the initial petition of
a foreign investor seeking permanent resident status under the Immigrant
Investor Program (known as "EB-5"). This approval is the key to
the release of funds the business developer will utilize in the new enterprise
that is being sponsored for development and no investor is going to allow the
funds to be released or hypothecated prior to the receipt of the approval.
Our area of specialization pertains to commercial income-producing property
development, as these projects tend to create the most jobs and jobs creation is
an important element of the program, but we support all commercial enterprises
that are for-profit enterprises for this particular program (program only allows
investment into for-profit ventures).
you are considering using this program to augment or supplant the equity
capitalization your project requires, then you need to know a few things before
you start down this road:
EB-5 initial review process requires at least 90 days, so there will be
additional carrying costs for your project owing to however long it takes
the government to complete the initial review of the immigrant's initial
EB-5 initial review requires the production of a "credible business
plan" and that must include (among other important requirements, so a
full and professional EB-5
business plan is an important key to success),
materially-significant due diligence documentation support to provide for
the following materially-significant disclosures: (1) a complete market
feasibility study for your project; and (2) a complete financial feasibility
study's or pro forma financial presentation's main FASB schedule; and (3)
documentation of the jobs to be created utilizing an accepted methodology;
and (4) the disclosure of the material participation in the management of
the enterprise by the immigrant applicant; and (5) evidence of the capital
investment; and (6) demonstration of the type of impact this enterprise will
have on the surrounding community; and (7) supporting contracts documenting
the validity of the transaction. A simple 4-page plan is going to be
automatically rejected. These plans require the touch of an
experienced plan builder and a template plan is not going to suffice.
USCIS really focuses on the need for the plan to be credible in every
respect, so if you don't know exactly what you are doing, you could get it
wrong and further delay your project and/or blow out the foreign investor
and have to start from scratch.
will be significant legal costs entailed to go down this route. You
will need to adjust your pre-construction phase and construction phase
capital budgets, accordingly.
capital is probably not going to be available to the developer before the
construction phase activities are underway. This means mezzanine
financing will likely be required to bridge the gap and thereby induce
the construction mortgage loan lender to close their financing so that the
project's construction may proceed.
are other matters that need to be understood and the immigrant (or sponsor) who
undertakes this process without full knowledge is going to be facing serious
potential pitfalls that could derail the process. Having to start over
could mean a real change in the proposed transaction or the end of it if time is
about to expire on the developer's site control agreement or other supporting
contracts that may be time sensitive in nature.
provides expert assistance and supports the following project types:
housing (our area of specialized expertise and an excellent job creator and
probably the strongest apples-to-apples economic performer).
(limited job creation, so caution is advised).
(may have limited job creation impact, so caution is advised).
(hotels and motels may be able to qualify for participation, please check
housing (limited job creation, so caution is advised).
care (good job creation prospects in most circumstances).
Talk to one of our consultants
today and get all of the facts about what can be done to get you the right plan
for the right project. We offer a full array of customized consulting
solutions to support all of your due diligence and capital financing needs.
do projects fail to get funding approved?
Rainmaker has had extensive
discussions through the years with clients who are seeking funding for
their commercial income-producing property development and construction
program, but have, so far failed to do so. Rainmaker has also had
extensive discussions with intermediaries, investment bankers, lenders,
investors and underwriters to get their side of the story. The
interesting thing is that the same five (5) things seem to come up again
and again that end up leading to a total failure. Are you destined
to fail? Can you afford to take the risk of blowing out even a
single funding source, knowing that source could be the one source you
needed to succeed? What can you do to avoid these terrible
mistakes that always lead to a rejection? Click
here and learn more.