EB5 Investors Magazine English Edition Volume 6, Issue 2 | Page 99

• The direct program faces no sunset dates. figures are in their EIR, and that a comfortable job creation cushion is present. • With a regional center project, investors must rely on multiple things not seen in a direct EB-5 i nve s t m e n t , i n c l u d i n g: t h e r e g i o n a l c e n te r ’s d esig na tio n m us t re main in tac t a n d in g o o d s t a n d i n g w i t h U S C I S a n d n o t b e te r m i n a te d throughout the entire duration of each sponsored project’s investment period. • Direct EB -5 investments should be backed by deep pocketed owners/franchisors/companies, w h o have th e abili t y to su p p o r t jo b c rea tio n projection targets that may require additional funding to hire and sustain additional staff if the initial project funding or operational cash flows are not sufficient. • Direct EB-5 investments can only count actual dire c t jo bs towa rds th e 10 jo bs p e r inves to r program minimum but they do not need an Economic Impac t Repor t (EIR) to calculate projected job creation, which reduces transaction complexity, time and resources. The direct jobs are typically calculated by tallying all verified full- time W-2 payroll employees who work in the given establishment or project. • Most other key requirements and characteristics of an EB - 5 transac tion are common bet ween the two investment types. They have the same minimum investment amounts, TEA calculations, options for more or less ac tive management, at- risk requirements and investor petition processing times. • For a regional center projec t, investors must be conf ident that the projec ted cons truc tion expe ndi tures and/or reve nue proje c tions are materially accurate, as one or both of these two inpu ts are primarily used when calculating a project’s total job creation. This is a critical point because if the project’s job creation doesn’t meet the minimum 10 jobs per investor, the prospective EB -5 investor will not receive his or her green card. Therefore, it is important for investors and their representatives to feel comfor table that the economists who use these project inputs have adequately assessed how reasonable these KEY STRUCTURAL ELEMENTS FOR A DIRECT EB-5 INVESTMENT In structuring a direct EB -5 investment, there are a variety of factors that should be considered in order to create a strong EB-5 offering. First, make sure the business entity or Job Creating Entit y is an established business that has a proven customer base and track record. Then , also check so that it is an established franchise with a proven b usiness c onc e pt that are bac ke d by quali t y, experienced and well-capitalized operators. They should have the ability to effectively and profitably operate and grow new units, identify ideal markets and locations EB5INVESTORS.COM 99