EB5 INVESTORS M AGAZINE
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that project has an exemplar and is still on the
market. Times have changed. But this was a tactic
to spin the truth. The truth of an exemplar is that
they are great to have but not all are created equal.
An exemplar approval means that a set of project
do cument s — i nclud i ng t he pr iv ate placement
memorandum, an economic report, business plan,
op er at i ng (or pa r t ner sh ip) ag re e me nt, es c row
agreement, subscription documents, sample I-526
and supporting documents — has been submitted
to and approved by the USCIS. It does not mean
that the project is good or bad from a financial
An exemplar approval
means that a set of project
documents...has been
submitted to and approved
by the USCIS. It does not
mean that the project is
good or bad from a financial
perspective.
”
perspective. It also does not go to the merits of
the project. It does not mean that USCIS believes
the project will actually start or finish. It simply
mea ns t hat t he documents subm it ted are EB-5
compliant. This is helpful. No one can argue this.
But is it dispositive of a good project? No!
A recently approved exemplar project may be great.
But it would be wise to consider some additional
factors that will make the exemplar more valuable,
suc h a s: w het her t he proje c t ha s st a r te d a s of
the date of the approval (and, if so, how much is
completed); how many investors the project has
subscribed; whether there is a minimum amount of
investors for the project to take EB-5 money; and
when the deadline is to subscribe the investors.
If the answers to these issues are not favorable,
a n e xe mpl a r-approve d proje c t m ay not b e to o
valuable. If the answers are favorable, then the
exemplar may be much more valuable than other
exemplars in the market. Many have aged well.
In fact, an older exemplar could be the strongest
project on the market based on those factors.
MISCONCEPTION 2:
ALL COLLATERAL IS THE SAME
Another misconception is that all collateral is the same.
While most developers intend to pay the investors back