Don't Leave Your Economist Out of the Loop

 So, you are putting together a new EB-5 project either as an actual or exemplar for either an I-924 as either an initial or amendment or perhaps filing an exemplar I-526 (for the first alien investor or if USCIS agrees, on behalf of that particular project).  Whatever the circumstances for filing a new or updated business plan and associated economic analysis, try to get it right from the very start.  Have you ever actually met and talked to your economist?  Has the person who conjured up the project, the person who authored the business plan, and the economsit had a deep discussion?  Has ANYONE involved in the newest Regional Center project actually handed a copy of the controlling statute, regulations, and Precedents to the people who authored (or are asked to write) the business plan and even more crucial, to the economist? See 8 CFR 204.6(m)(3)(i-v). There are laudry lists for the economic analysis which will need to support the business plan. That underlying business plan should be compliant with Matter of Ho (1998) at: http://www.justice.gov/eoir/vll/intdec/vol22/3362.pdf and provide a solid basis for the economist to select appropriate data for input into the chosen econometric model used to produce the economic analysis that shows the job creation projections. Keep the economist and business plan author focused on the elements that USCIS wants to see as described in the statutes, regulations and Precedents. You may need to hire someone to train your business plan writers and economists on tailoring their work products to meet the legal requirements for approval by USCIS. 

If not guided properly, a business plan writer will probably still produce a work product that will suffice even if it is akward or contains extraneous information.  The business plan is used as a basis for selection of both the econometric model that wil yeild the best reliable results for that particluar industry or "kind of commercial enterprise" (not all valid models will produce the same numbers for each industry) and the ecomonic analysis (most models can use at least two approaches, i.e, based on money or based on new identifiable jobs created) produced as supporting evidence to be filed with USCIS.  Also, tell the economist about the difference bewteen EB-5 and Economists' definitions of "direct" and "indirect" jobs".  

While a business plan that is akwardly compiled usually will not result in a denial it will likely cause a delay because the USCIS adjudicators and subject matter experts (SMEs) will have to comb through it to get to the required elements. A business plan that is not compliant with Ho should be doomed anyway and never be submitted to anyone for anything. [It's usually not brain surgery or rocket science that we are dealing with in the formulation of a business plan.  "Comprehensive, detailed, and credible" is what is demanded for EB-5 but, would anyone invest a million dollars each or $30 to $200 million or more in the aggregate based on anything less?]  On the other hand, if an economic analysis lacks required elements it will not only cause the same delay just described it will also be a solid reason for an RFE or NOID.  Particular specific elements are listed in the stautes and regulations. If a required element is not included this eqauls insufficient evidence and is properly addressed via RFE or NOID if it is really bad (as in unsalvagable). 

The first lesson here is:  Communicate the actual EB-5 requirenments to the people producing your evidence in support of any application or petition.

Ponder this:  If a project will include 10 EB-5 investors each paying a management or subscription fee of $20,000 that's $200k or if the fee is $80,000 then that's $800k  and if your project has 50 or more EB-5 investors--you get the picture! What are you charging them for if NOT to get all the hypertechnical matters in good order and make the projects EB-5 compliant and supported by USCIS-vetted prima facie evidence to support their individual petitons? 

 

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Business Plan economic analysis econometric model required elements