Transcription
EB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSFOR COMMERCIAL REAL ESTATEDEVELOPMENT PROJECTSAFFILIATENETWORKPHONE: 1-800-288-9138E-MAIL: info@EB5AN.comEB5AN.comImmigration Law Partners, LLPPHONE: 215-825-8600E-MAIL: info@klaskolaw.comKLASKOLAW.comImmigration Law Partners, LLPDisclaimer: This Questionnaire is not comprehensive and is designed solely as a startingpoint and supplementary tool for conducting project diligence. This tool is provided freeof charge. In no way should this Questionnaire or the results thereof be construed aslegal, financial, immigration, investment or any other form of advice. EB5AN and KlaskoLaw explicitly disclaim and are not responsible for any investment, legal, immigration orany other decisions made by anyone with respect to this Questionnaire. Persons usingthis Questionnaire do so at their own risk.
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPABOUT THE QUESTIONNAIREThe purpose of the EB-5 project risk assessment questionnaire is to help EB-5 investorsmake more informed EB-5 investment decisions by evaluating the key factors that impactimmigration and financial risk in EB-5 projects.The EB-5 project risk assessment questionnaire is the result of a partnership betweentwo EB-5 industry leaders: EB5 Affiliate Network and Klasko Immigration Law Partners.Leveraging their extensive experience working with EB-5 projects around the country andEB-5 investors around the world, these firms have closely collaborated to assemble a setof immigration and financial risk related questions that help investors quickly identify themost important aspects of an EB-5 investment so they can ask the right questions andknow the best answers.QUESTIONNAIRE INSTRUCTIONSThe questionnaire can be completed as a digital PDF file or it can be printed andcompleted manually in hard copy form.Whichever method you choose, simply review and enter responses for all 32 immigrationand financial risk questions for a specific EB-5 project. All the answers to the questionscan be found in the project’s offering documents. If you have difficulty finding the answersto any of the questions, you should contact the person or company that provided you withthe information on this EB-5 project and ask for assistance. The choices for each answerare categorized as “Strong,” “Medium,” or “Poor” responses. Strong answers receive 3points, Medium answers receive 2 points, and Poor answers receive 1 point.For the Digital PDF Version of the QuestionnairePlease use Adobe PDF Reader to enable automation features of the questionnaire.Once all questions have been answered, the results are automatically displayed in asummary table and chart on the last page of this file.For the Hard Copy Version of the QuestionnaireAfter printing a hard copy of the file and following the instructions above to completethe questionnaire, you can manually total the scores for both financial and immigrationrisk in the summary chart. Then plot the results on the chart on the last page of thequestionnaire.EB5AN.com2KLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPTABLE OF CONTENTSIMMIGRATION RISKJOB CREATIONQUESTIONS#1#2#3#4PAGEHow many jobs are required for all EB-5 investors (10 per investor),and how many jobs will the project create in total?How many of the project’s jobs have already been created (as of theEB-5 investment date)?How many of the project’s jobs are from construction spend anddoes the construction timeline last over 24 months (the minimumrequirement to count direct construction jobs)? Are there enoughjobs from construction alone to satisfy the job creation requirement?Is the economic report compliant with USCIS standards?6678PROJECT COMPLETION#5Is all of the capital needed for the project already committed?8#6What happens if the desired amount of EB-5 capital is not raised?9REGIONAL CENTER AND PROJECT SPONSOR CREDIBILITY#7What is the background and experience of the regional center’soperators?9#8Is the project sponsor qualified to manage EB-5 investment capital?10#9Do the regional center owners have an ownership stake in the EB-5project?10#10Is the regional center compliant with USCIS rules and regulations?11#11Does the project have an ongoing compliance plan to protectinvestors throughout the life of the EB-5 investment?11USCIS APPROVAL#12#13#14Has this project filed for or received I-924 “exemplar” approval withUSCIS?Does the project have a preset plan for redeploying investment fundsif the EB-loan is paid off before all investors have received conditionremoval approval?Is the regional center approved for the geographical area thatincludes the location of the project?EB5AN.com3121213KLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPTABLE OF CONTENTS#15Is the project in a TEA?13#16Is there any guarantee of return of capital or acquisition of propertyor other assets?14QUALITY OF DOCUMENTATION#17#18#19#20Are the professionals involved in preparing the documentationexperienced with EB-5 projects?Is the project business plan “Matter of Ho” compliant andeconomically feasible as is required by USCIS for all EB-5 businessplans?Does the economic impact report clearly identify credible sourcesfor EB-5 eligible job creation and determine how many EB-5 jobs theproject will create for each EB-5 investor?Are the Offering Documents for the project compliant with USCISrequirements?EB5AN.com414151617KLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPTABLE OF CONTENTSFINANCIAL RISKBORROWER / DEVELOPER CREDIBILITYQUESTIONSPAGE#1Who is the developer of the EB-5 project (typically the manager ofthe job creating entity (JCE))?18#2Does the developer have a verifiable track record of success?18#3How much development (in U.S. dollars) has the developercompleted to date?19#4Does the developer have established relationships with lenders?19#5Who are the owners of the developer?20CAPITAL STACK SOURCES#6Is the project fully capitalized?20#7What percentage of the project is developer equity?21#8Is there a senior lender / bank already committed to the project?21EB-5 INVESTMENT / LOAN TERMS#9What is the initial EB-5 loan term length? Are extensions permitted?22#10What is the escrow structure for the project, and how does this fitinto the overall project viability?22#11What event or events will trigger the start date of the EB-5 loan?23#12How many times can the EB-5 loan be extended before a default?23#13Is there a clear repayment mechanism at the end of the loan term?24#14Who are the EB-5 fund issuers?24#15Do the EB-5 fund issuers have an ownership stake in the EB-5project?25ONGOING FINANCIAL REPORTING#16What processes are in place to provide for regular reporting to EB-5investors?EB5AN.com525KLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPIMMIGRATION RISKJOB CREATION1.How many jobs are required for all EB-5 investors (10 perinvestor), and how many jobs will the project create intotal?Strong Answer2.At least 1.5X job cushion (i.e., the projectcreates 20 jobs per investor rather than therequired 10 jobs per investor)Fair AnswerBetween 1.2X-1.5X job cushionPoor AnswerBelow 1.2X job cushionHow many of the project’s jobs have already been created(as of the EB-5 investment date)?Strong AnswerFair AnswerPoor AnswerEB5AN.comThe project has already started to createthe required jobs for investors (meaningconstruction money is already being spent)The project has a clear date on which jobcreation or construction will begin within thenext 3 monthsKEYProjects that createsignificantly more jobsthan are required perinvestor have lowerimmigration riskKEYProjects that havealready created orstarted to create EB-5eligible jobs before theEB-5 investor’s capitalenters the projecthave substantially lessimmigration riskThe project has not created any EB-5 eligiblejobs to date and there is no clear date on whichsuch jobs will be created or construction willbegin6KLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPIMMIGRATION RISK3.How many of the project’s jobs are from construction spendand does the construction timeline last over 24 months (theminimum requirement to count direct construction jobs)?Are there enough jobs from construction alone to satisfythe job creation requirement?Strong AnswerFair AnswerPoor AnswerEB5AN.comThe project creates more than 15 jobs perinvestor from construction spend alone withan expected construction timeline of over 2.5years as indicated in writing by a reputablegeneral contractor OR there are sufficient jobsusing indirect construction jobsThe project creates between 10-15 jobs perinvestor from construction spend alone with anexpected construction timeline of over 2 yearsas indicated in writing by a reputable generalcontractor OR there are sufficient jobs usingindirect construction jobsKEYdirect jobs fromconstruction projectscan only be includedif construction lastsover 24 months andEB-5 eligible jobsfrom constructionexpenditures, ratherthan operatingrevenues, have alower risk of not beingcreated since the jobcreation is satisfiedas long as the projectis built, there is nooperational riskThe project creates less than 10 jobs perinvestor from construction spend alone withan expected construction timeline of less than2 years and no written documentation of theprojected construction timeline7KLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPIMMIGRATION RISK4.Is the economic report compliant with USCIS standards?Strong AnswerFair AnswerPoor AnswerThe economic report calculates jobs usingthe input/output method analyzing RIMSII or IMPLAN data; takes a conservativeapproach on the geographic area (no morethan 1 Metropolitan Statistical Area) where theeconomic impact from the project will occurThe economic report calculates jobs usingthe input/output method analyzing RIMS II orIMPLAN data; takes an aggressive approach onthe geographic area (more than 1 MetropolitanStatistical Area) where the economic impactfrom the project will occur;The economic report does not use an USCISapproved methodology OR has any errorsin the job calculations, data analyzed, or anyother material aspect of the economic reportKEYThe economic reportis the documentindicating the numberof jobs created by theproject and is a crucialcomponent for theinvestor’s EB-5 petition.A compliant economicreport uses an USCISapproved methodologyutilizing approved thirdparty data sources andapplies the data to thecorrect geographicareaPROJECT COMPLETION5.Is all of the capital needed for the project alreadycommitted?Strong AnswerAll of the sources of capital required have beenidentified and committed and the project isalready underwayFair AnswerAll of the sources of capital have beenidentified, but not all sources have writtencommitmentsPoor AnswerNot all of the sources of capital required havebeen firmly identifiedEB5AN.com8KEYProjects with allrequired capitalcommitted are saferbecause they willmove forward withhigh likelihood ofcompletion since allrequired capital isavailable; if a project isnot completed, it maynot create enough EB-5jobs for the investorsKLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPIMMIGRATION RISK6.What happens if the desired amount of EB-5 capital is notraised?Strong AnswerAll of the capital needed to complete theproject has already been committed before anyEB-5 capital enters the project; the EB-5 capitalis being used to recapitalize bridge funding perUSCIS requirements, and there is no minimumraise for the projectFair AnswerThe project may be completed without EB-5capital, but other capital sources will need tobe identified, and the project may stallPoor AnswerThe project will not be able to start or becompleted without all of the targeted EB-5capital being raisedKEYProjects that arecontingent on EB-5capital being raisedin order to startconstruction are muchhigher risk for EB-5investors because thereis no guarantee that allof the required EB-5investors will be foundin the required amountof timeREGIONAL CENTER AND PROJECT SPONSOR CREDIBILITY7.What is the background and experience of the regionalcenter’s operators?Strong AnswerFair AnswerPoor AnswerEB5AN.comThe regional center owners are professionalswith institutional backgrounds and extensiveinvestment and regional center experienceacross multiple EB-5 projects managing atleast 50 million in EB-5 capital (100 investors);the owners have no criminal record; therehave been no terminations with respect to anyregional centers operated by the same ownersThe regional center owners are involved in onlya smaller number of EB-5 projects OR do nothave extensive investment or EB-5 experience;the owners have no criminal record; managingEB-5 projects totaling at least 10 million inEB-5 capital (20 investors)KEYOwners of a regionalcenter shouldbe experiencedprofessionals whohave a track record ofsuccessful investmenttransactions;they should haveinstitutionalbackgrounds, with nocriminal convictionsThe regional center owners have been convicted of crimes in thepast OR a regional center operated by the same principals has beenterminated by USCIS OR the regional center manages less than 10million in EB-5 capital (less than 20 investors)9KLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPIMMIGRATION RISK8.Is the project sponsor qualified to manage EB-5 investmentcapital?Strong AnswerFair AnswerPoor Answer9.The project sponsor’s principals have beeninvolved in EB-5 projects totaling at least 50million of funded capital; there have been nodenials of any of their investors’ I-526 or I-829petitions for project-related reasonsThe project sponsor’s principals have beeninvolved with EB-5 projects totaling less than 50 million in the aggregate; the principalshave limited previous investment experience;there have been no denials of any of theirinvestors’ I-526 or I-829 petitions for projectrelated reasonsThe project sponsor’s principals have no previousinvestment experience OR manage less than 10 million of EB-5 capital; OR there has been adenial with respect to any of their investor’s I-526or I-829 petitions for project-related reasons; ORthere have been past allegations or convictionsof fraud against the NCE or any other businessventure involving the project sponsor’s principalsDo the regional center owners have an ownership stake inthe EB-5 project?Strong AnswerFair AnswerPoor AnswerEB5AN.comThe regional center owners have no equityinterest in the development, the RegionalCenter / Manager only has financial interestrelated to successful EB-5 managementthe regional center owners have a financialinterest in the project (outside of the EB-5component) but the investors are protected byan independent 3rd party general partner ormanaging member of the NCEKEYThe project sponsor(also known as theNCE) is the companymanaging theinvestor’s funds and isthe “issuer” of the EB-5securities purchasedby investors. Having aprofessionally managedsponsor with EB-5immigration experienceis vital to ensuringthe project remains incompliance with USCISrequirements. Whilenot always the case,the project sponsorand the regional centermay be, and often are,the same principalsKEYThe owners of aregional center shouldnot have any ownershipin the EB-5 projectbecause this createsa clear conflict ofinterest, which can bedangerous for EB-5investorsThe regional center owners have a financial interest in theproject (outside of the EB-5 component) and there is noindependent 3rd party general partner or managing member ofthe NCE10KLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPIMMIGRATION RISK10. Is the regional center compliant with USCIS rules andregulations?Strong AnswerFair AnswerPoor AnswerThe regional center is fully compliant with allUSCIS requirements, has filed an annual I-924Aform for every year required, and maintainsdetailed information on all sponsored investorsand projects; has never received a notice ofintent to terminate the regional center; onrequest the regional center can and doesprovide supporting evidenceThe regional center is not currently in compliance with USCISrequirements OR cannot demonstrate through supporting evidencethat it currently is in compliance with USCIS requirements OR hasever received a notice of intent to terminate the regional centerThe project has an independent 3rd partyproviding ongoing compliance, including datatracking and legal reviewFair AnswerThe project has provided for ongoingcompliance, but it will be done withoutindependent 3rd party reviewPoor AnswerThe project has not developed a plan forongoing compliance.EB5AN.comProfessionally runregional centers mustbe compliant with theUSCIS requirementswith respect to annualreporting and keepappropriate recordswith respect to allinvestors sponsored bythe regional centerThe regional center has previously failed tobe fully compliant with USCIS requirements,but currently has been in compliance withUSCIS requirements for the last 2 years withsupporting evidence; has never received anotice of intent to terminate the regional center11. Does the project have an ongoing compliance plan to protectinvestors throughout the life of the EB-5 investment?Strong AnswerKEY11KEYOngoing complianceand reporting of keyproject informationincluding: financialaccounting, constructionexpenditures,immigration status, andjob creation status willhelp protect investorsand keep investorsconstantly informedof the status of theirinvestmentKLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPIMMIGRATION RISKUSCIS APPROVAL12. Has this project filed for or received I-924 “exemplar”approval with USCIS?Strong AnswerThe project has filed for and received I-924“exemplar” approval from USCIS OR hasinvestors with approved I-526 petitionsFair AnswerThe project has filed an I-924 “exemplar”application with USCIS but has not yet receivedapproval and has no approved I-526 petitionsPoor AnswerThe project has chosen not to file an I-924“exemplar” application with USCIS and has noapproved I-526 petitions13. Does the project have a preset plan for redeployinginvestment funds if the EB-loan is paid off before allinvestors have received condition removal approval?Strong AnswerThe offering documents identify a low riskredeployment strategyFair AnswerThe offering documents have a redeploymentplan, but the redeployment investment is notlow riskPoor AnswerThe offering documents do not include aredeployment strategyEB5AN.com12KEYBest practice is forprojects to file anI-924 “exemplar”application for projectapproval with USCIS;once approved, thisapplication confirmsthat the project meetsthe requirements forthe EB-5 Program,and any investors whoselect the project aremore likely to receiveI-526 approvalKEYUSCIS future processingtimes are unpredictableand I-829 removalof conditions maytake longer than theoriginally anticipatedtimeline, so it isimportant to be surethat the EB-5 projecthas identified a strategyin advance for thepotential redeploymentof EB-5 capital inaccordance with USCISrules and regulationsKLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPIMMIGRATION RISK14. Is the regional center approved for the geographical areathat includes the location of the project?Strong AnswerThe regional center’s approved geographicalarea includes the location of the EB-5 projectFair AnswerThe regional center’s approved geographicalarea is contiguous to the county of the EB-5projectPoor AnswerThe EB-5 project location’s is outside of theregional center boundaries and the county inwhich the project is located is not contiguousto the existing approval15. Is the project in a TEA?Strong AnswerUSCIS policy requiresthat an EB-5 projectthat utilizes indirectand induced jobcreation must belocated within closelycontiguous to thegeographic area ofan approved regionalcenterKEYThe project is in a single census tract with anunemployment rate exceeding 150% of thenational average and has a currently valid TEAdesignation letter OR is located in a rural areaFair AnswerThe project has a currently valid state TEAdesignation letter based on the aggregation ofmultiple census tractsPoor AnswerThe project does not have a currently validstate TEA designation letter and is not locatedin a rural areaEB5AN.comKEY13If the EB-5 projectrequires only a 500Kinvestment, it must belocated in a formallydesignated TEA areaand have a currentdesignation letter OR belocated in a rural areaKLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPIMMIGRATION RISK16. Is there any guarantee of return of capital or acquisition ofproperty or other assets?Strong AnswerFair AnswerPoor AnswerThere is no mention of a date or amount ofredemption of the investment nor any provisionfor the investor to get any benefit not availableto non-EB-5 investorsThe offering documents reference aredemption right at the option of thedeveloper, but not the investorThe offering documents reference a specificredemption amount and/or date, or theinvestor is entitled to a benefit not available tonon-EB-5 investorsKEYUSCIS rules andregulations require thatan EB-5 project keepinvestor capital “atrisk” during the lifetimeof the investment,and therefore anyguarantee of returnof capital or futureacquisition of propertyor other assets is notpermittedQUALITY OF DOCUMENTATION17. Are the professionals involved in preparing thedocumentation experienced with EB-5 projects?Strong AnswerFair AnswerPoor AnswerEB5AN.comThe professionals who completed the EB-5project documentation are reputable and haveextensive experience with EB-5 projects acrossthe countryThe professionals who completed the EB-5project documentation have worked on a fewEB-5 projectsKEYThe professionals (e.g.,immigration lawyer,economist, securitieslawyer, business planwriter, etc.) involvedin assembling the setof EB-5 documentsshould be experiencedwith EB-5 projectsThe professionals who completed the EB-5project documentation have never workedon an EB-5 project before this one OR theprofessionals were previously involved in aproject that ultimately resulted in I-924, I-526or I-829 denials for project-related reasons14KLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPIMMIGRATION RISK18. Is the project business plan “Matter of Ho” compliant andeconomically feasible as is required by USCIS for all EB-5business plans?Strong AnswerFair AnswerPoor AnswerEB5AN.comThe business plan is “Matter of Ho” compliantas certified by a reputable business plan writerexperienced in the EB-5 industry and includesa separate report or section with a marketfeasibility studyThe business plan appears to meet therequirements of “Matter of Ho”, but was notprepared by an EB-5 business plan writer andhas a section on the economic feasibility of theprojectKEYEB-5 business plansare specializeddocuments that requireappropriate disclosureas discussed in “Matterof Ho”. It is critical toimmigration securitythat the business planbe clearly written andMatter of Ho compliantand economicallyfeasibleThe business plan does not appear to meet therequirements of “Matter of Ho” and contains noinformation on economic feasibility15KLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPIMMIGRATION RISK19. Does the economic impact report clearly identify crediblesources for EB-5 eligible job creation and determine howmany EB-5 jobs the project will create for each EB-5investor?Strong AnswerFair AnswerPoor AnswerEB5AN.comThe economic report explains exactly howmany EB-5 eligible jobs will be created and thetimeline for creation. The report also includesa breakdown of exactly how many jobs willbe created for each investor. The report alsoincludes a detailed explanation of the input/output methodology utilized in the calculationof EB-5 eligible job creationThe economic report contains a summaryof total job creation for the project and thesources for the job creation, but fails to includeinformation on the timeline for the jobs tooccur. The report includes a short explanationof the input/output methodology utilized in thecalculation of EB-5 eligible job creationKEYEB-5 economic impactreports must containa clear framework ofhow projected EB-5eligible jobs will becreated in total and perinvestor. It is critical toimmigration securitythat the economicimpact report clearlyexplains how manyEB-5 eligible jobs willbe created, the timelinefor their creation, andthe source of theircreationThe economic report only includes the totalnumber of projected EB-5 eligible jobs, but failsto include any information on: (i) a breakdownof the sources of the job creation, (ii) input/output methodology used, and (iii) a cleartimeline for when and the jobs will be created16KLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPIMMIGRATION RISK20. Are the Offering Documents for the project compliant withUSCIS requirements?Strong AnswerFair AnswerPoor AnswerEB5AN.comThe Offering Documents have been preparedby a securities attorney experienced withEB-5 and reviewed by a reputable immigrationattorney experienced with the EB-5 programThe Offering Documents have been preparedby an experienced securities attorney, but notreviewed by an experienced EB-5 immigrationattorneyThe Offering Documents have been preparedby a securities attorney with limited EB-5experience and have not been reviewed by anexperienced EB-5 immigration attorney17KEYAlmost all EB-5projects are privateplacements ofsecurities requiringdisclosure to investorsin the form of aprivate placementmemorandum oroffering memorandum.The disclosures in suchdocuments, in additionto being compliantwith securities laws,must also indicate toUSCIS that the projectis in compliance withimmigration lawKLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPFINANCIAL RISKBORROWER / DEVELOPER CREDIBILITY1. Who is the developer of the EB-5 project (typically themanager of the job creating entity (JCE))?Strong Answer2.The developer is a strong, financially liquidcompany that has an extensive track recorddeveloping this specific type of project (e.g.,apartment, hotel, condominium, etc.) and hasnever defaulted on a loan in its history; thedeveloper can easily secure senior financing onthis projectFair AnswerThe developer has built several projectssimilar to this project with senior debt but hasdefaulted on loans in the pastPoor AnswerThe developer has never built a project like thisproject and has not been able to secure otherdebt financing for this projectDoes the developer have a verifiable track record of success?Strong AnswerThe developer has built 10 projects similar tothis project, and not one of them has failed tobe completed or has been taken over by thelender / bank involvedFair AnswerThe developer has worked on several projectssimilar to this project, but not all of them havebeen completed and sold at a profitPoor AnswerThe developer has never built a project like thisproject and is relying on EB-5 investors to fundthis projectEB5AN.com18KEYThe developer ofthe EB-5 project iscritical because thisis the company thatis actually borrowingthe EB-5 capital andpromising to return itto the EB-5 investorsafter the investmentperiod; investors shouldselect developers whoare most likely to havethe ability to repay theEB-5 loan when theloan term is completedKEYThe developer shouldhave an easily verifiedtrack record thatmakes investors feelcomfortable about thedeveloper’s involvementin this projectKLASKOLAW.com
Immigration Law Partners, LLPEB-5 PROJECT RISK ASSESSMENTQUESTIONNAIRE FOR INVESTORSImmigration Law Partners, LLPFINANCIAL RISK3. How much development (in U.S. dollars) has thedeveloper completed to date?Strong AnswerFair AnswerPoor Answer4.The developer has completed more than 2billion of real estate development in the U.S.The developer has completed more than 500million of real estate development in the U.S. orhas a supporting team that has completed over 500 million of developmentFair AnswerPoor AnswerEB5AN.comThe greater theamount of realestate developmentexperience thedeveloper has, themore likely the projectwill be well organizedand the greater thechance of successThe developer has completed less than 500million of real estate development in the U.S. anddoesn’t have a strong team with a large amount ofreal estate experienceDoes the developer have established relationships withlenders?Strong AnswerKEYThe developer has borrowed 100 million ormore from banks, often working with the samebank on more than one projectThe developer has borrowed less than 100million and has worked with only one bank inthe pastThe developer has never borrowed moneyfrom a bank on a similar project and has reliedonly on equity investment capital to completeits projects19KEYTypically, if thedeveloper has strongrelationships withlenders / banks, it isconservative with itsassumptions and banksare comfortable lendingcapital to the developerto complete its projects;if no bank would lendthe developer money,thi
The purpose of the EB-5 project risk assessment questionnaire is to help EB-5 investors make more informed EB-5 investment decisions by evaluating the key factors that impact . immigration and financial risk in EB-5 projects. The EB-5 project risk assessment questionnaire is the result of a partnership between . two EB-5 industry leaders: EB5 .
