EB5 Feasibility Study

EB5 Feasibility Study

MFN is a world leader in feasibility study report research and writing. Our team can assist with any feasibility project, especially those related to real estate, including in the EB5 space. A feasibility study is important prior to a company spending its own capital on a project that they do not yet know is even viable, let alone to try and solicit offering investment capital from, for example, Chinese investors of the EB5 project.

Various Types of Feasibility Study Reports

MFN’s team can assist with any of the noted feasibility studies below. Each separate study has its own features but there are more similarities among them than there are differences.

4 Main Feasibility Studies

  • Real Estate Feasibility – This is the most common feasibility study that we at MFN write. Real estate feasibility reports include such features as the land survey, building permits, zoning laws, impact on the surrounding environment and natural habits, traffic issues and general impact on businesses in the area as well as the overall market opportunity. Housing developments such as condos, single family homes and apartments, or larger projects such as hotels or buildings or sky scrapers often create real estate feasibility studies before land acquisition and development.
  • Comprehensive Feasibility– A comprehensive feasibility study is an all-inclusive report that takes into consideration some of the most rational business practices one should implement before undertaking any project. The comprehensive feasibility includes data on land acquisitions and real estate issues, economic and cultural impact on the greater surrounding areas, and more. Such comprehensive studies can be found in our business plan features (if a client wants a very long and detailed analysis). The comprehensive feasibility study is also referenced in the real estate feasibility study (see above) and together with the real estate report is the most popular feasibility study we offer.
  • Financial Economic Feasibility– An economic feasibility study is conducted when a company wants to know if the proposed amount of capital and financing is sufficient to complete a project successfully. While a business plan may have a section called the “CBA” or cost-benefit-analysis, in an economic feasibility study it will be greater in detail and have more statistics and numbers in the financials.
  • Marketing Feasibility– The marketing feasibility studies the market impact and penetration, such as the demographics, target market, product testing and more. Prior to launching a project into the market, whether in a local, regional, national or global environment, a viable study on the market is imperative.

EB5 Real Estate Feasibility Study

MFN can assist with your EB5 project, from start to finish. If your company is seeking to develop land and/or is in the construction business and is seeking foreign investment capital, the EB5 program is a popular method to raise money from overseas. EB5 allows for foreign investors to infuse capital in a US company, at least $500,000, which will grant them a green card or living rights in the United States for a specific amount of time, usually for 5 years. Our firm has been assisting with EB5 projects since the inception the program and can ensure that you are properly setup and ready to take in non-US capital.

EB5 History

The U.S Congress created the EB-5 Program in 1990 with the intent to create jobs and infuse the economy by allowing companies to accept foreign investment capital into their US based company. In return for capital, these foreign investors would be allowed to live in the United States, and their wife and children for several years by way of a green card. A company can qualify for EB-5 investment capital if the following is undertaken:

  • Foreign investors will invest their capital in a US based company. EB5 is most popular for real estate development projects.
  • Companies must create and/or maintain ten full time jobs, in perpetuity, for American citizens.

Our team at MFN can assist with a partial requirement for EB5 solutions, or the entire EB5 requirements.
The following is a list of elements that is defined as the complete solution.

  1. Business Plan for EB5
  2. Private Placement Memorandum EB5
  3. Specific Econometric Study
  4. Generic Econometric Study
  5. Investors Website Development (brochures, software tracking for employment and other smaller features
  6. Possibly identifying foreign investors for your project

Our staff has year of experience assisting with EB5 projects. Below are some of the elements we assist with. It’s an all-inclusive process.

  • Business Plan: A thorough written business plan is a must for an EB5 project to get off the ground. The business plan will act as the guiding path for the project and all investors will most likely want to look at a business plan to make sure the company is sound. The business plan will answer all required questions regarding the project’s goals and strategies, and the EB5 USCIS agency will want to ensure that you have covered all the territory necessary for the business plan to make sense.
  • Private Placement Memorandum: A well written and structured private placement memorandum (PPM) must written and submitted to USCIS. In addition to the PPM document the subscription agreement and an investor questionnaire will need to be created as well for investors to read as well. This is required for regional center approval.
  • Escrow Agreement: Our team will write your escrow agreement as this is mandated by USCIS if one wants approval of a regional center.
  • Specific Econometric Study: A company must write a specific econometric study that complies with USCIS standards that will be undertaken in conjunction with the regional center. a specific econometric study of all specific projects to be done within the regional center.
  • Generic Econometric Study: In additional a generic economic study is necessary for each project of function to be undertaken in the region center. Approval will be needed.
  • Investor Website Development: We will assist in the creation of a website that will detail such features as the project, the company, the management team, EB5 resources and more.

If your company is seeking to launch a US based company, whether for hi-tech or real estate or other ventures, and would like to explore the EB5 option a as way mechanism to raise money from foreign investors, our team at MFN can assist. Reach out to us in one of United States offices for a free consultation.

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 EB5 Feasibility Study