In today’s tight capital environment, good projects are finding it difficult, if not impossible, to obtain capital funding.    If a source of funding is determined, the application process can be frustrating due to the length and complexity of the process.

 

Flagler Department of Economic Opportunity is one of Florida’s top economic development agencies participating in the Federal EB-5 visa program. Through the EB-5 program an economic development project can obtain capital much faster and easier that any convention loan program. And often the cost of capital is much lower than traditional methods.

 

A brief explanation of how the program works:

·         EB-5 is an approved Federal program that is regulated by US Citizenship and Immigration Services (USCIS).

·         A foreign national such as someone from Canada, Europe, or Australia seeks to establish permanent residency rights in the US. (Green card).

·         If the foreign national invests in an economic development project and creates 10 permanent jobs, this person and his family would receive a permanent green card.

·         All investor are screened by Homeland Security before any investment can be made.

·         EB-5 investments/transactions can occur anywhere in the US, but most often occur within a Federal approved Regional Center.

·         Investing in a project within an approved Regional Center saves the foreign investors both time and money.  The Regional Centers have already done all the required non-project specific economic studies and application needed for each investment.

·         Regional Centers will evaluate the project and negotiate the needed contractual agreements to fund the project.

·         If a project’s application is complete and accurate, the Regional Center may have a non-bidding verbal determination as to whether the project is a good fit for the EB-5 program within 30-60 days.  A formal review typically days 90-120 days.

 

Advantages for the project:

·         With the current uncertainties and governmental regulations in the banking/financial industry, capital funding through an EB-5 investment may be the only sizable source of capital funding for a project.

·         The cost of EB-5 capital is generally lower than traditional sources.   A foreign investor’s primary goal in these investments is to obtain a permanent green card.  These investors are looking for safe job creation projects that offer an exit strategy within 5-7 years of investment.

·         Not only is Flagler County part of a regional center, it is also a Target Employment Area (TEA).  Due to our high unemployment rate,  the Federal Government has established additional incentives to attract foreign investment to our County. This means a local project should find it easier and quicker to attract foreign investment than non-TEA areas.

·         The EB-5 program is like having an angel investor without giving half your company to them.

 

More information