EB5 Investors Magazine Volume 1 Issue 2 | Page 26

Investor’s Checklist for an EB-5 Compliant Business Plan by Lauren Cohen Writing a compliant business plan in the complex and cumbersome EB-5 world is a refined area of expertise. The writer needs to be intimately familiar with EB-5 requirements, while understanding the importance of developing a business plan that can actually be implemented and defended. Business plans submitted with EB-5 visa petitions must provide a basis for USCIS to draw “reasonable inferences” about the business’s potential viability and success. The more detailed the plan, the better the opportunity for the reviewer to assess the potential success of the business, which will translate to a higher likelihood of approval. A truly credible business plan contains detailed and verifiable information about the new enterprise that will be supported by the EB-5 investment. EB-5 business plans, whether for regional center or direct investment projects, must meet the requirements set forth in Matter of Ho. 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 sufficient detail, is presented professionally, and includes all supporting documentation and data. ✓ 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. Although the EB-5 investment visa has no specific requirement 26 for the type of business structure, this choice is very important in terms of legal, tax, and management considerations. The three most common EB-5 entities are limited partnerships, corporations, and limited liability companies. ✓ Marketing Plan with Target Market Analysis: A meaningful marketing plan and budget will assist USCIS in determining the likelihood of the business’s success. A well-developed marketing plan is a vital component of any business; it is the roadmap for promoting the product or service being sold, enabling the business to get noticed by the “right” people–the target market. A business that attempts to operate without a marketing plan will likely end up wasting money, losing sales, and ultimately might fail. Notably, in an EB-5 business plan, the ma