The EB-5 Immigrant Investment Program
  • Administrated by the United States Citizenship and Immigration Service (USCIS)

  • The Mid-Continent designation is required as a practical matter before most investors will commit to investing in an EB-5 project

  • A foreign investor can obtain a green card by making a $500,000 investment through Mid-Continent in a rural area or targeted employment area, or $1 million in a metropolitan statistical area, if that investment creates 10 jobs for US workers over a two-year period

  • Mid-Continent can count direct, indirect, and induced jobs—with some limitations for construction jobs

  • Upon approval of the initial petition, a conditional green card is issued to the investor and his/her family

  • After two years and documentation that the jobs were created, the investor and his/her family are granted permanent green cards by USCIS and may establish permanent residency at any desired location in the US

  • Investors may embark on the path to citizenship, if desired

The Purpose of the EB-5 Program
  • To stimulate the economy and job growth

  • Allow foreign nationals a way to establish permanent residency in the US

  • Create an effective method of raising capital for projects in rural areas and areas of high unemployment in a time of difficult project financing

The Mid-Continent Program
  • Mid-Continent approved by USCIS on March 11, 2014

  • Allows pooling of investments by immigrant investors and Mid-Continent assumes the responsibility of investing the funds in job creating enterprises which create the requisite jobs

  • Further responsibilities include recruiting foreign investors, helping get information gathered and submitted to USCIS for the project and investor(s), and tracking and verifying the creation of jobs so that the permanent green card for the immigrant investor will be approved by USCIS


Mid-Continent Program
  • Created as a funding mechanism for area projects

  • Upon approval, investors may be recruited from almost all foreign countries throughout the world

  • The largest numbers of EB-5 investors are from Asian countries (primarily China, South Korea, Taiwan, and India), followed by the Middle East

Potential Capital Raise Target by Mid-Continent for an Illustrative Project
  • Assume econometric studies indicate that approximately 225 full-time direct and indirect jobs will be created by a new business

  • 200 employees will allow 20 EB-5 investors (with a jobs cushion of 25 jobs), at an investment of $500,000 each in a rural area or targeted employment area (TEA), for a $10 million capital raise; or $1 million in a metropolitan statistical area (MSA), resulting in a potential capital raise of $20 million dollars

  • The capital raised can be used to provide equity or debt service (or a combination) to job-creating entities through creation of a limited partnership investment entity; investors generally prefer a debt model

  • Investments of $1 million per investor are required in Metropolitan Statistical Areas with low levels of unemployment

Expectations of Foreign Investors
  • A green card for themselves and their families, which overrides typical financial return criteria for the investment

  • A return of investment dollars within approximately five to seven years after completion of the project

  • A debt model will give a rate of return to the immigrant investor on the order of 0.5 to 2%; the equity model is not favored by most foreign investors