EB5 Investors Magazine "Top 25 issue" Volume 9 Issue 1 - Page 25

some allocations of fractional jobs being removed from the overall construction activity . Indirect job creation is also now capped at 75 % of the total job creation .
Based on these factors , the following steps must be taken to continue the pre-act project documentation
( 1 ) It must renegotiate its underlying agreement with the sponsoring Regional Center . In connection with that , some sponsors may consider forming their own Regional Center . Negotiation factors include support pre- and post-Act investors .
( 4 ) Working with the economist to secure a TEA qualification letter that will be subject to USCIS approval .
All in all , topping off a pre-Act Offering is even more complicated than setting up a new offering entirely . One cannot be cavalier about the process and must seriously consider how to work with pre-Act investors such that those investors are not harmed in any way by actions of the EB-5 Issuer seeking to raise additional capital .
OVERVIEW OF EB-5 PROJECT STRUCTURE PRE-EXISTING EB-5 PROJECT
Class A EB-5 Investor - $ 500,000 ( 4 )
Class B EB-5 Investor - $ 900,000 ( 1 )( 4 )
Class C EB-5 Investor - $ 800,000 ( 4 )
“ Regional Center ” ( 2 )
“ Company ” EB-5 Loan or Equity Contribution ( NCE )
EB-5 MANAGER , LLC “ Manager ” See Footnote below
100 % EB-5 Loan or Equity
Contribution
Guaranty of Completion
Direct EB-5 Investment ( 3 )
Parent Company ( 6 ) “ Borrower / Master Developer ”
“ Developer ”
Equity Contribution
100 % Ownership
Management Agreement
OWNER , LLC “ Property Owner ” See Footnote 5 below
Up to $ X of Equity
Senior Loan the sharing of regional center costs , the coverage of fees to third parties for necessary due diligence and document review , and the ultimate sharing of all fees and back-end payments .
( 2 ) Addressing the fund administration or required audits to meet the requirements of the Act .
( 3 ) Updating the economic study and business plan in conformity with the provisions of the Act . As an example , given the nuances surrounding the creation and reporting of jobs , the overall project may have a reduced the number of eligible jobs to
Assuming no $ 900,000 investment has been made , the following language would apply :
Prior to November 21 , 2019 , the investment amount per EB Investor was $ 500,000 . Thereafter , no investor proceeds were received until between June 22 , 2021 and June 30 , 2021 , during the time period when the New Regulations were invalidated until such time as the EB-5 sunsetted on June 30 , 2021 . The Company received a total of $ X of investor proceeds at a subscription amount of $ 500,000 per Unit ( the
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