EB5 Investors Magazine Volume 2 Issue 1 | Page 59

amount. First, the professionals desire the documentation to be immediately compliant. Second, the project developers do not want to start the compliant project documentation until they know they can get funding. Third, the brokers and intermediaries desire to force the professionals and developers to prepare Edward C. Beshara documents that they can easily market to the investors who fund the projects. And, of course, the investors desire U.S. permanent residency and a viable exit strategy from the project. Direct project The EB-5 compliant direct project consists of a comprehensive business plan, including verifiable details of the business activity—showing how the EB-5 funds will be committed and lead to the creation of jobs. USCIS will first adjudicate the EB-5 compliance at the time of adjudicating the I-526 petition prepared and filed by the investor. Because non-compliance will cause the investor’s petition to be denied, it is important that the investor be sure that all aspects of the project are in compliance before filing their petition to avoid wasting time and money. USCIS will again consider compliance with EB-5 regulations at the I-829 stage, when the investor files to remove conditions to his permanent residency. While they may each focus on their individual priorities, the reality is that all the blind mice play an equally important role in preparing an EB-5 compliant and marketable project; therefore, the goal for a successful EB-5 project is the coordination of these efforts. They will coordinate first to combine compliance and marketability, then to receive funding as quickly as possible, all in the hopes of avoiding denials. Regional center project The EB-5 project associated with an existing regional center will be deemed compliant through inclusion of a comprehensive business plan, an economic report showing the creation of indirect jobs, and the security offering documents for the investors to review and sign.1 If there is non-compliance with securities regulations, the SEC will not hesitate to bring legal action against the project. On this basis, it is imperative that an experienced securities attorney with EB-5 expertise be retained by the EB-5 project for strict guidance. A compliant EB-5 project Key in establishing an EB-5 project are the professional team members—or mouse one—consisting of the immigration attorney, economist, business plan writer, marketing analyst, and securities attorney. These players all understand the technical rules and policies of what makes an EB-5 project compliant. In fact, the team (who should have the appropriate EB-5 expertise) will know how to prepare the documents so that they will be approved by USCIS. A textbook EB-5-compliant project is supported by documents proving business activity and demonstrating that the investment funds will lead to the required job creation. This is important because, as we will determine, the project needs to be more than compliant to be successful. An EB-5 project, whether it is a direct EB-5 project or one associated with a regional center, must be compliant with the EB-5 rules and regulations as put forth by USCIS. The laws and rules state the requirements for a compliant EB-5 project; however, these laws and regulations are interpreted by the USCIS officials in the form of written policy memoranda, written requests for evidence (RFEs), and/or through approval