Investor’s Checklist
for an EB-5
Compliant
Business Plan
by Lauren Cohen
Writing a compliant business plan in the complex and
cumbersome EB-5 world is a refined area of expertise. The
writer needs to be intimately familiar with EB-5 requirements, while understanding the importance of developing a
business plan that can actually be implemented and defended.
Business plans submitted with EB-5 visa petitions must
provide a basis for USCIS to draw “reasonable inferences”
about the business’s potential viability and success. The
more detailed the plan, the better the opportunity for the
reviewer to assess the potential success of the business,
which will translate to a higher likelihood of approval. A
truly credible business plan contains detailed and verifiable
information about the new enterprise that will be supported
by the EB-5 investment.
EB-5 business plans, whether for regional center or direct
investment projects, must meet the requirements set forth in
Matter of Ho. It is crucial that EB-5 investors and facilitators
understand the Matter of Ho elements and ensure that the
business plan submitted to USCIS contains each element in
sufficient detail, is presented professionally, and includes all
supporting documentation and data.
✓ Business Description: The main purpose of the
business description is to give USCIS an overview of
the (proposed) business, including the (i) industry,
(ii) business purpose, operations, and personnel, (iii)
mission statement, (iv) business history and future
plans, and (v) other information that will provide the
agency with an engaging overview of the business. In
the description, USCIS needs to get a handle of the
concept, business model and likelihood of success.
✓ Business Structure: EB-5 investors must generally
invest in a for-profit, new commercial enterprise
formed for the ongoing conduct of lawful business,
including sole proprietorships, partnerships, holding
companies, joint ventures, corporations, business
trusts, or any other lawful entity. Although the
EB-5 investment visa has no specific requirement
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for the type of business structure, this choice
is very important in terms of legal, tax, and
management considerations. The three most
common EB-5 entities are limited partnerships,
corporations, and limited liability companies.
✓ Marketing Plan with Target Market Analysis:
A meaningful marketing plan and budget will
assist USCIS in determining the likelihood of the
business’s success. A well-developed marketing
plan is a vital component of any business; it is the
roadmap for promoting the product or service
being sold, enabling the business to get noticed by
the “right” people–the target market. A business
that attempts to operate without a marketing plan
will likely end up wasting money, losing sales,
and ultimately might fail. Notably, in an EB-5
business plan, the ma