EB Endeavour

In its continuing effort to remain at the cutting edge of financing real estate transactions in difficult economic conditions, Endeavour has launched an international joint venture project with Canadian International Capital Incorporated out of Nova Scotia, Canada. Using EB-5 capital, Endeavour has created another debt and equity source for its projects and client projects. Endeavour EB is forming both geographical investment areas known as regional centers and also placing EB-5 financing into targeted real estate deals throughout the country including Texas, Wisconsin, Florida, Colorado, Mississippi and Alabama.

EB Program & Benefit to the Foreign Investor

For foreign investors seeking the freedom and flexibility to live and work in the United States, the EB-5 Visa Program provides an excellent opportunity to obtain Green Cards.

A Green Card provides Permanent Residency for the applicant, his or her spouse and all children under the age of 21. The EB-5 investment visa route to a green card avoids the usual requirement of having family connections, securing a job or running an actively traded business - making it a viable route to retirement.

The Immigrant Investor Pilot Program was created by Section 610 of Public Law 102-395 on October 6, 1992. This was in accordance to a Congressional mandate aimed at stimulating economic activity and job growth, while allowing eligible aliens the opportunity to become lawful, permanent residents.

This "Pilot Program" requires only $500,000 of investment in exchange for permanent resident status. The investment can be received only by an economic unit defined as a Regional Center.

Regional Centers

Endeavour EB and its joint venture partner, Canadian International Capital Incorporated are forming two EB-5 Regional Centers in Alabama and Mississippi.

A Regional Center is defined as any economic unit, public or private, which is involved with the promotion of economic growth, improved regional productivity, job creation, and increased domestic capital investment. In more simple terms, a Regional Center is an USCIS designated area which is eligible to receive immigrant investor capital. A Regional Center obtains its designation by submitting a detailed application to U.S. Citizenship and Immigration Services (USCIS).

EB Endeavour and CICI are submitting its two proposals which will contain the following information:

1. How the regional center plans to focus on a geographical region within the U.S., and must explain how the regional center will achieve the required economic growth within this regional area.
2. That the regional center’s business plan can be relied upon as a viable business model grounded in reasonable and credible estimates and assumptions for market conditions, project costs, and activity timelines.
3. How in verifiable detail (using economic models in some instances) jobs will be created directly or indirectly through capital investments made in accordance with the regional center’s business plan.
4. The amount and source of capital committed to the project and the promotional efforts made and planned for the business project. 

Targeted Employment Area (TEA)

Like the NMTC program, EB-5 is a geographic based investment tool per Federal legislative requirements The geographic area for EB-5 is referred to as a Targeted Employment Area (TEA) and is defined by law as “a rural area or an area that has experienced high unemployment of at least 150 percent of the national average.”

'Rural Area' - means any area not within either a metropolitan statistical area (as designated by the Office of Management and Budget) or the outer boundary of any city or town having a population of 20,000 or more.

A Targeted Employment Area (TEA) for EB-5 Visa purpose allows $500,000 USD investment rather than the regular $1 Million USD.

The USCIS Regional Center designation allows the requisite job-creation to be indirect and induced, as well as direct. When you have a Targeted Employment Area within a Regional Center you get an EB-5 project that requires $500,000 USD and allows job-creation to take place directly and indirectly, but sometimes all indirectly.

Deal Profile & How the EB-5 Program Benefits a Real Estate Transaction Including Combining with NMTCs

EB-5 capital is not a high risk capital source. Instead, it is a capital source that is flexible and below market. For owners of real estate or business expansion opportunities, EB-5 can be used with traditional debt and equity or can replace these sources. The project profile, below, is one of EB Endeavour’s most recent EB-5 deal structures that combines NMTCs and EB 5 financing.

Total Project Cost $8,400,000

EB Loan  $5,000,000 @ 4.5% Interest Only
EB Equity  $500,000 @ 7%
NMTC Equity   $2,100,000
Owner’s Equity   $400,000
Municipal Assistance $400,000

Challenges of EB-5

Although EB-5 is an attractive capital source, there are challenges that must be managed through the development process:

1. Timing: EB-5 is an 8 - 12 month approval and placement process.
2. Not a high risk capital source so you need to have secured deals in return the deal gets better Loan to Value and better interest rates.
3. Connecting with firms that can place your project. There are a number of pretenders out there in the EB-5 world. You need to work with a placement firm that has oversea relationships and “boots on the ground”. The number one competitive advantage that Endeavour EB has is it relationship with CICI. CICI has overseas offices with active EB-5 agents.