Tribal EB-5 Handbook

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Jennifer Watson
10 years ago
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2 The United States Citizenship and Immigration Services (USCIS) runs the EB-5 (Employment-Based Fifth Preference Immigration Program) to help stimulate the US economy. The EB-5 Visa Program enables a foreign investor to obtain permanent residency status (a green card) in the U.S. for himself and his family in exchange for making an investment of either $500,000 or $1 million in a U.S. business that produces at least ten (10) permanent fulltime jobs.

The EB-5 Visa Program enables a foreign investor to obtain permanent residency status (a green card) in the U.S.

3 In general, EB-5 investors are looking for secure, low-risk investments that allow them to recoup their funds and exit the business within a five year-time frame. Some investors will agree to longer terms. Since investors are interested in green cards (residency), they will often accept below market returns. Businesses soliciting EB-5 money may have a difficult time accessing traditional capital, especially in the current lending environment that came about after the recession, may be looking for a way to secure gap financing for a project, and would of course be interested in beneficial terms. Repayment can be structured flexibly.

Businesses soliciting EB-5 money may have a difficult time accessing traditional capital, especially in the current lending environment that came about after

4 EB-5 investments are usually facilitated through specialized lawyers or firms and what are called regional centers. Since the program s inception well over $3 billion has been invested in US companies. in 2012, over 7,000 EB-5 visas were issued representing about 3,000 investors. EB-5 projects are always multi-million dollar investments. The trend has been for EB-5 investors to look for larger projects, often involving many EB-5 investors and diverse sources of additional capital.

in 2012, over 7,000 EB-5 visas were issued representing about 3,000 investors.

5 Tribal projects can avail themselves of special advantages in soliciting EB-5 investments: The minimum investment amount is $500,000 for an investment in a Targeted Employment Area (TEA). Almost all Tribes qualify as TEA s. TEA investments are sought out by EB-5 investors because they are able to invest a lower amount of money ($500,000) and still secure US residency.

(TEA). Almost all Tribes qualify as TEA s.

6 Projects in which Tribes have advantages can be structured to offer low risk investments. Tribes can structure projects with marketing advantages to either the federal government or other Tribal businesses.

7 The EB-5 regional center program has benefitted the gaming and casino industry. EB-5 funds have been used for construction of new casino complexes, as well as development of new gaming machines and technologies. States where gaming financing have occurred using the EB-5 program include Maryland, Mississippi, Nevada, Pennsylvania, and Nevada. However, few if any Indian casinos have availed themselves of EB-5 financing to date.

10 EB-5 investment can be combined with other sources of capital, such as New Market Tax Credits, affording very low-cost capital to large projects. Tribes are in advantageous positions to take advantage of both of these sources of capital.

11 Tribes begin with a strong project and a thorough business plan. It takes about a year to obtain capital. There are some up-front costs and no guarantee of success. However, some assurance of success can be provided by having a well thought out project that will appeal to EB-5 investor interests as well as working with reputable EB-5 firm that has a track record of placing successful investments.

However, some assurance of success can be provided by having a well thought out project that will

12 In general, a few Tribes are only just now beginning to explore financing options using EB-5 investments. Tribes have a number advantages in attracting EB-5 funding under favorable terms to fit the right projects. EB-5 can be a viable source of Tribal project funding and can be explored by a Tribe in conjunction with appropriate resources to see if EB-5 funding may be a fit for specific projects.

Tribes have a number advantages in attracting EB-5 funding under favorable terms to fit the right

13 Q & A Is this an opportunity for Tribes? What information is needed for Tribes to consider as part of their respective capital formation pool? What part of EB5 is challenging? What part of EB5 is exciting? Would you like a digital copy of the Handbook?

14 Roger B. Fragua Cota Holdings, LLC

Minimum Investment $1,000,000! Minimum Investment in a Targeted Employment Area (TEA) $500,000!

Minimum Investment $1,000,000! Minimum Investment in a Targeted Employment Area (TEA) $500,000! PRESENTED BY Employment Based 5 th Level USCIS administers the Immigrant Investor Program, also known as EB-5, created by Congress in 1990 to stimulate the U.S. economy through job creation and capital