Investor’s Checklist for an EB-5 Compliant Business Plan

Investor’s Checklist for an EB-5 Compliant Business Plan

It is crucial that EB-5 investors and facilitators understand the Matter of Ho elements and ensure that the business plan submitted to USCIS contains each element in.

Business Description

The main purpose of the business description is to give USCIS an overview of the (proposed) business, including the (i) industry, (ii) business purpose, operations, and personnel, (iii) mission statement, (iv) business history and future plans, and (v) other information that will provide the agency with an engaging overview of the business. In the description, USCIS needs to get a handle of the concept, business model and likelihood of success.

Business Structure

EB-5 investors must generally invest in a for-profit, new commercial enterprise formed for the ongoing conduct of lawful business, including sole proprietorships, partnerships, holding companies, joint ventures, corporations, business trusts, or any other lawful entity.

Marketing Plan with Target Market Analysis

A meaningful marketing plan and budget will assist USCIS in determining the likelihood of the business's success. In an EB-5 business plan, the marketing plan must often address two different target markets -the prospective INVESTORS in the business, and the actual END-USERS of the business's products or services.

Personnel Experience

This element of the business plan will normally include an explanation of the business's management, key personnel, and their experience, management philosophy, backgrounds, organization, and functions.

Competitive Analysis

Competitors should be analyzed in terms of market penetration, prices, jobs, products, services, and other relevant factors. It is important to emphasize the differences between existing businesses and the new enterprise. Understanding the weaknesses and strengths of the proposed business when compared to competitors paints a picture for USCIS of the challenges and advantages that the business is likely to face and demonstrates an objective approach.

Required Licenses and Permits

Operating a business means addressing all required permits and licenses.

Timetable for Hiring

The EB-5 program requires the new business to create a minimum of 10 new full-time jobs for a period of two years and/or to save 10 jobs that would have otherwise been eliminated. A compliant business plan needs to demonstrate that each investment will create 10 jobs through a detailed staffing plan, including a clear timetable for employee hiring, ideally in the narrative and visually.

Job Descriptions

Job descriptions are an essential part of any business organization and an important element of a business plan. Job descriptions ensure that USCIS understands the jobs that will be created by the business, and the roles and responsibilities of each job. They should be practical, clear, and accurate, and directly correlate to the project.

Budget and Financial Projections

The business plan must be well-documented with financial projections including sales, costs, budgets, and income over a period of five years. The budget must also show the basis and assumptions for these projections. It must show the source of funds to start up, support, and maintain the business, as well as detailing the uses of funds raised from investors. All financial projections must be based upon generally accepted accounting principles and reasonable business models.

Meet Olga V. Guzhva

Olga V. Guzhva

Attorney Olga Guzhva focuses her practice on Immigration Law and Federal Tax Controversy matters. Ms. Guzhva represents individuals and corporate clients in the United States and throughout the world. She is committed to provide high-quality legal services and responsive, proactive solutions that bring measurable value to each client’s unique situation.

Ms. Guzhva is a member of the American Immigration Lawyers Association (AILA) and is admitted to the New York State Bar. She is licensed to practice law in all courts in the State of New York and in the U.S. Tax Court. Her practice in Washington State is limited to federal law matters: immigration law and IRS tax disputes. She represents clients at various federal agencies, including Internal Revenue Service, U.S. Citizenship and Immigration Services, U.S. Department of Labor and U.S. Department of State.

Related Guides