EB-5 Offering Memorandum

EB-5 Offering Memorandum

An offering memorandum is a document that discloses the offering terms of a company that is seeking capital. In return for investment dollars, a company operating in the EB-5 space will divulge such terms as the total dollar amount they are raising, the type of stock or securities that the investor will receive upon making an investment, the project’s risk factors, the management team’s experience, financials statements and financial projections and much more. Our team at Prospectus.com is the world leader in drafting offering memorandums for EB-5 projects across the development and construction industry and can ensure that you company is structured properly in order to receive foreign capital for your project.

Prospectus.com can assist with your EB5 project, from start to finish. If your company is seeking to develop land and/or is in the construction business and is seeking foreign investment capital, the EB5 program is a popular method to raise money from overseas. EB5 allows for foreign investors to infuse capital in a US company, at least $500,000, which will grant them a green card or living rights in the United States for a specific amount of time, usually for 5 years. Our firm has been assisting with EB5 projects since the inception the program and can ensure that you are properly setup and ready to take in non-US capital.

EB5 History

The U.S Congress created the EB-5 Program in 1990 with the intent to create jobs and infuse the economy by allowing companies to accept foreign investment capital into their US based company. In return for capital, these foreign investors would be allowed to live in the United States, and their wife and children for several years by way of a green card. A company can qualify for EB-5 investment capital if the following is undertaken:

  • Foreign investors will invest their capital in a US based company. EB5 is most popular for real estate development projects.
  • Companies must create and/or maintain ten full time jobs, in perpetuity, for American citizens.

Our team at Prospectus.com can assist with a partial requirement for EB5 solutions, or the entire EB5 requirements.
The following is a list of elements that is defined as the complete solution.

  1. Business Plan for EB5
  2. Private Placement Memorandum EB5
  3. Specific Econometric Study
  4. Generic Econometric Study
  5. Investors Website Development (brochures, software tracking for employment and other smaller features
  6. Possibly identifying foreign investors for your project

Our staff has year of experience assisting with EB5 projects. Below are some of the elements we assist with. It’s an all-inclusive process.

  • Business Plan: A thorough written business plan is a must for an EB5 project to get off the ground. The business plan will act as the guiding path for the project and all investors will most likely want to look at a business plan to make sure the company is sound. The business plan will answer all required questions regarding the project’s goals and strategies, and the EB5 USCIS agency will want to ensure that you have covered all the territory necessary for the business plan to make sense.
  • Private Placement Memorandum: A well written and structured private placement memorandum (PPM) must written and submitted to USCIS. In addition to the PPM document the subscription agreement and an investor questionnaire will need to be created as well for investors to read as well. This is required for regional center approval.
  • Escrow Agreement: Our team will write your escrow agreement as this is mandated by USCIS if one wants approval of a regional center.
  • Specific Econometric Study: A company must write a specific econometric study that complies with USCIS standards that will be undertaken in conjunction with the regional center. a specific econometric study of all specific projects to be done within the regional center.
  • Generic Econometric Study: In additional a generic economic study is necessary for each project of function to be undertaken in the region center. Approval will be needed.
  • Investor Website Development: We will assist in the creation of a website that will detail such features as the project, the company, the management team, EB5 resources and more.

If your company is seeking to launch a US based company, whether for hi-tech or real estate or other ventures, and would like to explore the EB5 option a as way mechanism to raise money from foreign investors, our team at Prospectus.com can assist. Reach out to us in one of United States offices for a free consultation.

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EB-5 Offering Memorandum