Non-traditional EB-5 financing can turn business potential into progress, by growing your company with capital from foreign investors. The EB-5 program has become an increasingly popular program for both investors seeking permanent residency, as well as U.S. companies looking for alternative financing opportunities. Working with an experienced regional center is important to the success of the project, for all parties involved. The North Dakota/Minnesota EB-5 Regional Center has successfully closed multiple projects varying in size and industry.
EB-5 Benefits to Companies
- $500,000-$1,000,000 Investment – Companies will receive $500,000 per EB-5 investor, if the project is in a Target Employment Area (TEA). Total EB-5 capital a project can seek is determined by the job creation specific to the project. Each EB-5 investor’s investment must create 10 U.S. jobs. If the project is not in a TEA then the minimum investment increases to $1,000,000 per investor. While the larger investment size may seem appealing, it is more difficult to attract investors to these projects. Investors still have the same amount of immigration risk, so it is rare to find an investor willing to doubling their financial risk.
- Flexible Terms and Structures – EB-5 investments can be in the form of equity or a loan, though most investors prefer the loan model. When structuring EB-5 loans there is flexibility, not available from traditional sources.
- No Long-Term Loss of Equity in your Company – EB-5 investors have three goals; obtain permanent residency, repayment of the principle investment, and some rate of return on their investment. Unlike a typical investor, EB-5 investors are more focused on an exit within five years, than a high return on their investment.
- Expert Coordination – The North Dakota/Minnesota EB-5 Regional Center coordinates all communication with EB-5 investors, agents, services providers, and the U.S. Citizenship and Immigration Services requirements (USCIS), so project principals can focus on running their business.
- Direct Access to International Investors – The North Dakota/Minnesota EB-5 Regional Center helps companies gain direct access to foreign investors through our established international partnerships and agent relationships.
- New Talent Pool/New Markets – Many EB-5 investors are successful business professionals that can bring not only their experience conducting business in international markets to the company, but also their international network of other business professionals.