EB5 Investors Magazine Volume 2 Issue 1 | Page 58

Three Blind Mice on the Path to Project Success In representing the developer, what comes first: EB-5 compliant project documentation or EB-5 funding? by Edward C. Beshara Due to the nature of the EB-5 program, it must meet multiple indicators of success— compliance with EB-5 rules and regulations and financial viability—in order to be marketable to foreign investors. The success of an EB-5 project hinges on foreign nationals investing in it; EB-5 investors will not invest if they are not certain that the project is EB-5 compliant and will lead to a green card. On the other hand, it does no good to have an EB-5 compliant project if investors are not convinced of its financial success and ability to create jobs. 56 In order to be viable and financially successful, the project often requires the use of EB-5 funds as quickly as possible. Therefore, funding of the project is equally as important as preparing EB-5-compliant project documentation. So, how does one determine which comes first—the EB-5 compliant project documentation, or the EB-5 funding? Any developer approaching the EB-5 program will be but one part of a complex apparatus. For the purpose of this analysis we will focus on three groups, the titular three blind mice: the team of professionals, the project developer, and the intermediaries sourcing the investors. The individuals in these groups are blind because they each believe their roles in the EB-5 project are par- E B 5 I n v e s to r s M ag a z i n e