The FirstPathway Partners Team 2/8/2015. Robert W. Kraft Chairman and CEO

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1 Corporate Headquarters 311 E. Chicago Suite 510 Milwaukee, WI Beijing Office 15/F, China World Tower 3 No. 1, Jianguomenwai Ave Chaoyang District Beijing, P.R. China (8610) Guangzhou Office B12 F/47 Wanling Center No. 230, Tianhe Rd. Tianhe District Guangzhou, P.R. China (8610) Founder of FirstPathway Partners 40 Years in Business Officer of a Public company of 30,000+ Employees CEO of International Marketing Company Entrepreneur Multiple Start Up Companies Member of 9 Boards of Directors, including the Board of IIUSA Married 40+ Years 3 Children 3 Grandchildren Robert W. Kraft Chairman and CEO The FirstPathway Partners Team 1

2 FirstPathway Partners 9 Projects with I 526 Approval 4 Projects with I 829 Approval Clients in 20 Countries Assisted Hundreds of Immigrant Investors through EB 5 program IIUSA President s Advisory Council Public Relations Committee Board of Directors FirstPathway Partners in the News EB 5 Regional Center Pilot Program The EB 5 Regional Center pilot program was created in 1992 to encourage foreign investment in the U.S. economy A Regional Center can professionally manage foreign investments in a designated business and geographic region Investment offering itself is subject to U.S. securities laws 2

3 EB 5 Basics Congress created Fifth Employment Based Preference (EB 5) Immigrant Visa Category in 1990 for the purpose of economic growth & job creation $1 million basic investment requirement $500,000 investment in Target Employment Areas (TEA) Must create at least 10 full time jobs EB 5 Impact on the U.S. Economy Since 2005, EB 5 has created over 95,000 American jobs with $4.7 billion in foreign direct investment at $0 cost to taxpayers $6,000 immigrant investor applications pending, representing $3 billion for job creation and capital investment EB 5 enjoys strong bi partisan support: Continued $173 million in federal tax revenue $109 million in state and local tax revenue annual 3

4 EB 5 Process Escrow Background Check I 526 Consular Processing Conditional Permanent Resident I 829 Legal Permanent Resident Investment Returned Citizenship (Optional) Who Qualifies? Investor Spouse Children Under 21, if biological Under 16, if adopted Unmarried Requirements Applicants Must Have: Clear criminal record Good health Legally obtained investment funds (traceable) Earned (stocks, home sale, employment, etc.) Gift Applicants Do Not Have to: Have management experience Document their net worth in excess of the $500,000 or $1 million (depending on the program) Live full time in the U.S. 4

5 Top 5 FY 2014 Visa Recipients 9,128 China: 85% China S. Korea Mexico China Iran Taiwan born The Wisconsin EB 5 Regional Center A designated USCIS Regional Center since 2013 Geographic area: entire state of Wisconsin Projects 5

6 The Global Water Center The Global Water Center, which opened in 2013, houses water related research facilities for universities, existing water related companies and accelerator space for new, emerging water related companies. 44 person lecture hall Exhibition space for new prototypes High tech, shared, core facilities Global Water Center in the News Awards The U.S. Small Business Administration (SBA) Regional Innovation Cluster award Milwaukee Business Journal 2014 Real Estate Award 2014 Mayor s Design Award for Design Excellence 2014 American Institute of Architects Design Award Bronze Excellence Award from Int l Economic Development Council (IEDC) 6

7 Current Project Hampton Inn & Suites West Allis This project exceeds USCIS job creation requirements (305 direct/indirect/induced) 5 year investment High market demand for a hotel in this area (near State Fair Park, Miller Park, Petit National Ice Center, Milwaukee Mile Speedway, and Wisconsin Expo Center) The hotel will have 100 rooms, 8,000 square feet of banquet/conference space, lounge, exercise room, business center, and a pool and spa 7

8 Coming Soon FirstPathway Partners Since 2008, FirstPathway Partners has assisted hundreds of immigrant investors through the EB5 program, raising millions in EB5 funds for job creating enterprises. FirstPathway Partners FirstPathway Partners is one of the few regional center managers to have obtained multiple projects with I 829 approval, placing it in the highest category of EB 5 industry achievement. 8

9 EB 5 Capital Pro s Typically higher LTV and LTC ratios Eb 5 could also be treated as preferred equity More flexible terms/convenants (EB 5 doesn t need to fit in a bank s regulatory box) Loan advance requirements may be more flexible With higher leverage available, the total cost of the capital is lower and makes the economics of the deal better In higher interest rate environments, EB 5 has a much lower cost of capital EB 5 construction loan can be structured with longer term than bank construction loans EB 5 Capital Con s Fundraising processes could jeopardize projects timeline/schedule Without bridge loan commitment, funds may not be available until fundraising is successful In low interest rate environments, banks typically have lower interest rates Geographic/industry requirements could make certain projects ineligible for EB 5 Job creation requirements could make some projects ineligible for EB 5. Must ensure jobs are created Timing of refinancing and/or repayment Traditional Capital Pro s Loan proceeds available when projects needs it Banks have brand recognition that could help when raising equity In low interest rate environments, banks typically have lower interest rates than EB 5 9

10 Traditional Capital Con s Stricter underwriting standards Lower LTC and LTV ratios Typically look for stronger personal guarantees Regulatory constraints on certain deal terms Collateral requirements typically require more equity than EB 5 lenders More restrictive covenants than EB 5 lenders Typically shorter term maturities on construction loans Other EB 5 Capital Considerations Intercreditor agreements Default and remedies info@firstpathway.com 10