The EB-5 visa program is a United States immigration program that allows foreign investors to obtain a green card if they invest a significant amount of money in a new commercial enterprise that creates at least 10 jobs for U.S. workers.

One of the most stringent requirements for obtaining an EB-5 visa is to submit a business plan for the proposed investment. The business plan must be comprehensive and detailed, and it must demonstrate that the investment will meet all of the EB-5 requirements. A summary of the EB-5 requirements can be found in this recent Reddy Neumann Brown PC article.

The Board of Immigration Appeals (BIA) has two primary cases that USCIS looks to in determining if a submitted business plan meets the necessary requirements. These caes are Matter of Ho and Matter of Izummi.

Matter of Ho

In Matter of Ho, the BIA held that an EB-5 business plan must be “a realistic and comprehensive document that sets forth the investor’s business objectives and how those objectives will be achieved.” The BIA also held that the business plan must be “supported by credible evidence.”

The BIA found that the business plan in the case at hand was not realistic because it failed to take into account the risks associated with the proposed investment. The BIA also found that the business plan was not comprehensive because it did not provide enough information about the investor’s background and experience.

The BIA’s decision in Matter of Ho sets a high standard for EB-5 business plans. Investors must carefully consider the risks associated with their proposed investments and provide USCIS with comprehensive information about their background and experience.

Importantly, Matter of Ho gave key components of what should be included in a business plan for an EB5. Some of the key pieces include:

• A clear description of the project, services, industry, timelines, purposes, financial projections, and operational plan
• A market analysis that demonstrates the demand for the business’s products or services
• Financial projections showing the business can succeed financial in the next 5 years and how the EB-5 investment will be utilized
• Organizational Structure and staffing requirements
• Comprehensive market analysis
• A financial plan that shows how the investment will create at least 10 jobs for U.S. workers
• A management team with the experience and expertise to operate the business
• A timeline for the creation of the jobs

The BIA’s decision in Matter of Ho sets a high standard for EB-5 business plans. Investors must carefully consider the risks associated with their proposed investments and provide USCIS with comprehensive information about their background and experience.

Matter of Izummi

While Matter of Ho set out the requirements of the EB-5 business plan, Matter of Izummi expanded on the requirement. In Matter of Izummi, the BIA held that an EB-5 business plan must be “specific and detailed enough to allow a reasonable person to understand the nature of the business and how it will create jobs.” The BIA also held that the business plan must be “realistic and achievable.

In Matter of Izummi, the BIA found that the business plan in the case at hand was not specific enough because it did not provide enough information about the products or services that the business would offer. The BIA also found that the business plan was not realistic because it failed to take into account the costs of operating the business.

The BIA’s decision in Matter of Izummi sets a high standard for EB-5 business plans. Investors must provide USCIS with specific and detailed information about their proposed investments. Investors must also ensure that their business plans are realistic and achievable.

Key Elements of an EB-5 Business Plan

The two cases detail out the key elements. To summarize, the major key elements are as follows:

• A description of the business and its industry
• A description of the products or services that the business will offer
• A market analysis that demonstrates the demand for the business’s products or services
• A financial plan that shows how the investment will create at least 10 jobs for U.S. workers
• A management team with the experience and expertise to operate the business
• A timeline for the creation of the jobs

Aside from these critical parts, an EB-5 business plan should include any other information that would assist USCIS in analyzing the investment and the likelihood it meets the EB-5 criteria. This information could include the investor’s background and experience, the business’s location, and any government incentives accessible to the business.

EB-5 Business Plan Tips

There   are a lot of factors to consider when preparing an EB-5 business plan. That said, here are some additional tips for writing an effective EB-5 business plan:

• Be clear and concise. The business plan should be easy to read and understand.
• Use credible sources. All of the information in the business plan should be supported by credible sources.
• Be realistic. The business plan should be realistic and achievable.
• Get help from an expert. If you are not sure how to write an EB-5 business plan, you can get help from an immigration attorney to ensure it complies with the EB-5 requirements or use a business consultant.

By following these tips, you can write an EB-5 business plan that will increase your chances of success in the EB-5 visa process.

In conclusion, the EB-5 visa program is an important aspect for foreign investors to obtain an EB-5 green card in the United States. However, the requirement is also very complex and requires careful planning and preparation. Those seeking an EB-5 visa should consult a qualified immigration attorney for more information about the EB-5 business plan requirement and for an analysis of their EB-5 business plan prior to filing.

Reddy Neumann Brown PC, located in Houston, Texas, has been serving the business community for over 25 years and is Houston’s largest immigration law firm focused solely on U.S. Employment-based immigration. We work with both employers and their employees, helping them navigate the immigration process quickly and cost-effectively.

By : Steven Brown

Steven Brown is a Partner at Reddy Neumann Brown PC where he works in the Non-immigrant visa department and leads the Litigation Team. His practice covers all phases of the non-immigration visa process including filing H-1B, L-1, E-3, H-4, and H-4 EAD petitions. In the last two years, Steven has successfully handled over 1,000 non-immigrant visa petitions including filing petitions, responding to any necessary Requests for Evidence, and drafting motions and appeals. He has also become a key resource for F-1 students that seek guidance on properly complying with the F-1 visa regulations and any OPT or CPT issues they may have. Additionally, Steven holds a weekly conference call for companies that are part of one of the largest organizations for IT Services companies in America.