12022-02-10T11:18:44+00:00stylefrontiera83423f715471fb8a2fd972507a41b07effc8b1515261unemployment through the creationplain2022-02-10T11:18:44+00:00stylefrontiera83423f715471fb8a2fd972507a41b07effc8b15Do You Really Need a Business Plan?
Sean Hackney didn't have the intention of starting a business when he began to create an outline of a business plan. Hackney came up with a plan to take over Red Bull North America Inc. in an effort to convince a soft drink company that he was available for hire. However, when he presented it to his corporate attorney father and former Red Bull managing director, "they told him, 'Don't give this plan to Coke or Pepsi. Start the business, and we'll help you,'" He remembers.
It was in 2000. Today, the 40-yearold co-founded Roaring Lion Energy Drink and is co-owner. The $6.2 million company is located in Sun Valley. "We have grown the business from a small investment of $62,000 to the number. Hackney claims that they now have two energy drinks available in bars or nightclubs. Hackney employs 32 employees, and his co-managers and investors are his former sounding boards. Hackney's business plan was subject to many revisions. The company now has a regularly updated marketing strategy. Hackney stated that writing the plan was "absolutely worth it." "I had lots of ideas in my head that needed to be put down on paper."
Direct EB-5 capital: A valuable chance for business leaders
Since 1990, the Immigrant Investment Program EB-5 has provided a secure source for investment capital to U.S. entrepreneurs who meet certain requirements. The EB-5 investment funds, which are typically at below-market rates are used to facilitate commerce across a wide range of industries. A large number of foreign nationals are willing to lend capital from EB-5. The United States Citizenship and Immigration Services is accountable to ensure that investment funds EB-5 are properly managed by investors and business owners. As the founder, managing partner and chief executive officer of a reputable agency for EB-5, I have helped many people access capital and adhere with USCIS regulations.
Guidelines for investment projects
The EB-5 investment program aims to eliminate unemployment through the creation of new jobs. Every investment must result from the creation of 10 full-time U.S. jobs for qualified workers. The investment must last for at least two consecutive years.
The EB-5 program offers foreign nationals the choice of two models: regional center sponsored projects or direct projects. This model uses capital that is intermediated through an economic entity called the region center to invest. The regional center projects generate greater employment in direct projects than direct ones. The distinction is that although direct EB-5 investment is limited to jobs on company payrolls, regional center investors may include induced jobs and indirect employment -- any employment that results from the expenditures of the EB-5 program and its employees within the locality.
The primary difference between regional center EB-5 and direct investment is that the former requires periodic government reauthorization. The EB-5 Regional Center Program was terminated on June 30, 2021, and was not renewed as of the date when this article was written. So it is mandatory that all EB-5 investments have to be direct. On June 22, the minimum EB-5 investment threshold was lowered by $500,000 to $500,000 for targeted employment areas (TEA) companies and $1,000,000 for non-TEA businesses. (A TEA refers to a region that has high unemployment and is in dire need for economic growth. Therefore, more foreigners can now make direct EB-5 investments.
1. A business structure that is suitable for your needs
In the direct EB-5 project the new business entity (NCE), must be in line with the entities that create jobs (JCE). NCEs must be able create at least 10 jobs for each investor. In general, your company should also be eligible to receive equity investments, but direct investors may decide to invest in a subsidiary that is entirely owned by the parent company.
2. Using at-risk EB-5 funds
USCIS requires that all investors in EB-5 EB-5 can experience either gains, or losses. That means all direct investment capital must be dedicated to the project, and there are no assurances about the financial results of the investment. Contractual rights for repayment are not permitted.
3. Possibility of employment creation
As we have said, each EB-5-related company must create at the very minimum 10 full-time jobs per investor. USCIS requires that investors complete Form I-829 to prove their capital was utilized for U.S. worker hires. Therefore, it is crucial to maintain accurate records of employment. Foreign nationals tend to favor EB-5 investments that will create more than 10 job opportunities per investor.
4. A solid business plan
USCIS approval requires you to provide a thorough plan for your company. The plan must outline the enterprise and show how you will meet the requirements. It is crucial to provide evidence that is credible (such as a third-party analysis of financials) to prove that you will create the required number of jobs. The plan should include descriptions of all jobs, a timetable for hiring and an employee schedule.
5. A viable type of business
EB-5 project is able to be used in virtually every industry as long their operations are legal. Certain types of projects are more suitable for direct investment. In particular, smaller businesses can attract fewer investors, which means they can create fewer jobs. (Many direct investors invest in companies in the restaurant, retail trade and wholesale industries.)
If your business is in compliance with these criteria, you could be eligible for direct EB5 funding. Although it is a complicated procedure that needs careful planning and consultation it can be more than worthwhile.