The role of the developer in the marketing of an EB-5 project varies depending upon the nature of the relationship the developer has to the regional center, the New Commercial Enterprise and the securities offering that will be presented to prospective EB-5 investors. A developer/borrower of EB-5 funds would have a very limited role in marketing whereas a developer that is intimately involved in the EB-5 offering should play a significant role.
To effectively market your development project to potential EB-5 investors, consider the following steps: Understand the EB-5 program: Gain a thorough understanding of the EB-5 program requirements, benefits, and target audience. This includes job creation, investment amounts, TEA (Targeted Employment Area) designations, and other aspects that make your project attractive to foreign investors. Collaborate effectively with the regional center that will be developing the marketing materials: Marketing materials are associated with the EB-5 offering so it is critical that the developer/borrower understand his/her role in this EB-5 transaction. As a borrower, the developer would not be directly involved in the development of marketing materials. Information provided by the developer would be one component of marketing materials associated with an EB-5 offering however there is much more involved than project information alone. Developing high-quality marketing materials, such as brochures, presentations, and videos, that showcase the unique features and advantages of your project are the responsibility of the regional center and the NCE unless the developer is playing a role in that securities offering. Monitor progress: Inquire as to the effectiveness of the regional center/NCE marketing efforts and if the capital raising activities are matching up to any requirements in the loan agreement or EB-5 equity operating agreement. A lack of success in raising funds may require a developer to make adjustments to the funding plan of the project.
Ensure that there are requirements for ongoing compliance with USCIS and SEC regulations throughout the marketing process. This includes accurate and transparent communication with potential investors and adherence to securities laws.