New England Federal EB5Regional Center (nefeb5.com)

EB5 Program for Connecticut

Agenda

• What is EB5 Investment?• What EB5 investors look for in EB5 project?• Benefits of EB5 financing • New England Federal Regional Center• General parameters of an attractive EB5 project• EB5 financing procedure• Structure of a typical EB5 project• Let us help you get EB5

What is EB5 Investment?• Created by US Congress in 1993

• Aiming to create jobs with foreign investment and allowing immigration benefits

• 10,000 EB5 visas available annually

• Capital stays in project for as long as 5 years

• Majority of EB5 investment through Regional Center

What EB5 investors look for?

• Successful approval of their Green Cards

• Return of their capital in 5 years

Why Should I consider EB5 financing?

• Money not otherwise obtainable Projects not financeable Projects w/ limited capital budgets Early stage financing Both private and public sectors can use EB5

• Money obtainable at below market rates Investors focus more on immigration benefits

• Money obtainable with flexible terms Direct lending vs. equity investment

EB5 Increaingly Popular to Investors

Fiscal Year I-526 Approvals Est. EB5 Capital

2007 473 $236,500,000

2008 640 $320,000,000

2009 1262 $631,000,000

2010 1369 $684,500,000

2011 1563 $781,500,000

2012 3677 $1,838,500,000

Source: United States Citizenship and Immigration Services

Chinese Investors Provide Most Capital

Country of Origin

# of EB5 Visas Issued 2012

# of total EB5 visas issued 2012

China 6124 80%

South Korea 447 6%

Taiwan 148 2%

Venezuela 109 1%

Iran 81 1%

Other countries 732 10%

Total 7641 100%

Source: United States Citizenship and Immigration Services

New England Federal Regional Center

• The 1st designated EB5 Regional Center in CT

• Created by team with strong ties to China

• Teamed with top-notch industry professionals

• $500,000 vs. $1 mm investment threshold

General Parameters of EB5 Project

• Developer equity approximately 20% of total cost• Complete projected capital stack at the start of fundraising• Clear 5 year exit strategy for EB-5 investors• Developer’s track record • Project team - General Contractor, architect, etc.• Proven market demand • Regulatory approvals• Groundbreaking projected 8-12 months in the future• Government support / participation (letters of support, tax benefits, grants, or land contribution)

No need to meet all, the more, the better.

EB5 Financing Procedure• Determine project marketability and estimate job creation (1-2 weeks)• Agreement between RC and Developer on EB5 amount and terms (1-2 weeks)• Security offering documents and EB5 paperwork (1-2 months)• Marketing and subscribing investors ($10-20 million for 4-6 months)• Conditional Green Cards I-526 approval (6-10 months)

Upon approval, money becomes available

It's Never Too Late for EB5

• Consider EB5 in planning stage

• Shovel ready -> Interim financing-> replaced by EB5

• Large project divided into phases for EB5

Sectors using EB5 financing most

• Hotels / lodging / entertainment / restaurant• Senior housing / assisted living / nursing home • Medical / hospital• Residential / mixed use / retail / office • School / university / educational institute• Manufacturing / factory

EB5 Project Structure

EB5 Investors Regional Center

NewCo LLC

Business Entity Receiving Capital & Create Jobs

Capital Management

EB5 Capital

For more information and contact:

www.nefeb5.com