The investor, either a real or corporate person, must be a national of a treaty country.
The investment must be substantial. It must be sufficient to ensure the successful operation of the enterprise. It cannot be marginal.
The investment must be proportional to the nature of the business.
The investment must be a real operating enterprise with verifiable
and legitimate business activities.
No job creation requirement.
Franchise acquisition acceptable.
Conditional agreement structured prior to final interview.
The investment must generate more income than just to provide a living to the investor and family, or it must have a significant economic impact in the U.S.;
The investor must have control of the funds, and the investment must be at risk in the commercial sense;
Investor must be able to demonstrate lawful origin, source and path of investment funds;
The investor must be coming to the U.S. to develop and direct the enterprise. If the applicant is not the principal investor, he or she must be employed in a supervisory, executive, or highly specialized skill capacity. Ordinary skilled and unskilled workers do not qualify;
Prospective E-2 Investor (Selected Countries)
Prospective E-2 Investor (Selected Countries)
Owns Any New or Existing U.S. Entity, Minimum $150,000 capitalization (LLC, Inc., Solo,)
X % ( e.g. 5% to 100%) Investor’s Entity Acquires Percentage in New or Existing Operating Commercial Enterprise + Advisory/Board Position
Master Entity Owns 100% of U.S. Operations
I. General Property Information
a. Aerial Maps
b. Property Photographs
c. Title report
f. Discussion of competing properties
g. Purchase Agreement or Option Agreement
h. Phase One Environmental Report
i. Risk Assessment
j. Zoning Information
II. Financing Information
a. Lender Information
b. Dollar amount of loan
c. Term of Loan
d. Interest Rate
ii. Variable and what index and margin
e. Required signers
f. Recourse requirements
g. Loan Commitment
h. Supporting Documents for financing commitments
III. Investment Objectives
a. Purpose of Investment
i. Cash flow from operations
ii. Value added
iii. Capital appreciation
iv. Tax benefits
v. Equity build up thru loan payoff
vi. Job creation
b. Sources and Uses of Funds Statement
c. Proposed duration of investment
d. Projections as to the first year of operations
e. Projections of subsequent years of operations
f. Assumptions used in making financial projections
IV. Ownership Entity
a. LLC or LP
b. Owner ship Entity (prospective structure)
i. Who is the Managing Member or Sponsor?
ii. Who will the Members be?
iii. Compensation paid to : GP / Managing Member/ RC or Sponsor during each phase
c. Will this investment be eligible for EB-5
ii. Regional Center
d. Banking arrangements
f. Organization documents and filings
V. Risk Factors Specific to:
a. Proposed property
b. The current market
c. The investment type
VI. Sponsor Track Record
b. Work experience
c. Track record on other projects of similar type or other
VII. Specific Information re: Land Project
i. Do any exist currently
ii. Does the project require entitlements
iii. If you do require entitlements what agencies are involved?
iv. if entitlements have been applied for previously what is the status
b. Budget re: Entitlements
c. Cost estimates:
i. Design professionals
ii. Consultants (all required)
iii. Time (estimated)
d. Projected sales and absorption figures
e. Proposed budget for construction
VIII. Information for Purchase of Existing property
a. Current or Proposed use of building
b. Property condition report
c. Statements (3 years Profit & Loss)
d. Balance sheets (3 years)
e. Proposed job creation with supporting documents
f. Proposed value after improvements are completed with supporting documents
g. Information on existing or proposed tenants
i. Financial reports
ii. Bios of personnel
iii. Business plans
iv. Track records
h. Formation documents
i. Copy of proposed lease or leases
j. Corporate or personal guarantees
k. Business plan of Sponsor
i. Decrease vacancy
ii. Increase rents
iii. Decrease expenses
iv. Job creation
a. State department form
b. Job creation analysis & descriptions
c. Economic Impact Analysis on project (Geographic & Demographic)
d. Business Plan
e. Feasibility StudiesAn accordion content area
Limited Liability Company (LLC ) – State Charter (As at April 17, 2020)
Capital Stack (projected): ……….
Job Creation: ……….
Documents Status/Availability: ……….
Special Comment: ……….
Local Support: ……….
Date of Report/Time: ……….
|Yr 1||Yr 2||Yr 3|
|1/6 x||1/3 x||x days|
|x days||x days|
= 183 or > 183 (122)
This chart is used to approximate U.S. Tax residency imposition or qualification. Consult a qualified U.S Tax accountant or attorney.