Project Document Requirements
The North Dakota/Minnesota EB-5 Regional Center requires the below information when screening projects and conducting due diligence. Additional documents will be required, on a project-by-project basis, during the project review and for all projects upon approval.
5 year Business Plan
A business plan is a written document that describes in detail how a business is going to achieve its goals. A business plan will layout a written plan from a marketing, financials, return on investment, and operational viewpoint. This allows EB-5 investors to gain a well-rounded understanding of the company they plan to invest in.
Complete Set of Financials
The North Dakota/Minnesota EB-5 Regional Center requires companies to share past, current, and project proforma financial information. Additionally, the company will need to clearly illustrate where all financing will be coming from, in addition to EB-5 financing. The company will need to have obtained, or show they are on track to secure, the other equity and debt financing. It is also critical to clearly outline the developer or project principal’s equity into the project.
Third Party Market AnalysisA third party market analysis is required to show the market demand unique to the project’s location and industry sector. It is important for this analysis to be conducted by a reputable third party.
Private Placement Memorandum
A Private Placement Memorandum (PPM) is a legal document stating the objectives, risks, and terms of investment. This includes items such as the financial statements, management biographies, detailed description of the business, etc. An offering memorandum serves to provide buyers with information on the offering and to protect the sellers from the liability associated with selling unregistered securities. When using the loan model, the North Dakota/Minnesota EB-5 Regional Center puts together the PPM for the lending company, but will rely on the company to provide project specific information.
Econometric Analysis
There are several different input/output models accepted by the USCIS, but the two most common methods are IMPLAN and RIMS II models. The principal difference is that IMPLAN is an employment-driven model, while RIMS II is an output-drive model. A preliminary economic analysis is conducted by the North Dakota/Minnesota EB-5 Regional Center during the project screening process for a fee of $250. This analysis will help to determine how much EB-5 financing the project can support. Once a project is approved, a full economic analysis is conducted by the North Dakota/Minnesota EB-5 Regional Center on behalf of the company.