As part of the application process, the promoter must clearly define the regional area where the businesses will be located. If the promoter seeks a minimum investment of USD 500,000 instead of the standard $1M, he must demonstrate that the region is either a Targeted Employment Area (population greater than 20,000 with unemployment rate 150% of the national unemployment rate) or a Rural Area (geographic area outside of a Metropolitan Statistical Area or the outer boundary of a city with a population more than 20,000).

Job creation methodology/model should be supported by sound and accepted economic forecasting tools for the specific geographical focus of the Regional Center. In the past IRCU has accepted Impact Analysis for Planning (IMPLAN),Regional Input-Output Modeling System RIMS II, and other generally accepted economic models.

The proposal should clearly reflect the basic EB-5 Requirements, most importantly:

• Requisite Investment capital value threshold ($500K vs. $1 million)
• Active investment provisions
• Lawful Source of Funds
• Investment capital at risk
• Active involvement of Alien Investor

1. A sample agreement or investment offering memo between Regional Center & Alien Investor which lays out key elements of investment in terms of risk, direct investment, describing nature of alien investor’s “active” involvement, with NO redemption, buy back, or loan arrangement between alien & enterprise.
2. A proposed escrow agreement that describes solely the investment capital at risk (e.g., does NOT include funds for attorney or other service fees)
3. Clear promotional marketing plans and strategies.
4. A business plan and supporting documentation which describe:
   • The types or kinds of job creating businesses that will be invested in, and how the Regional Center will focus on specific industries.
   • The organizational structure of the commercial enterprise (e.g., LLC, LLP, Inc., etc.).
   • The amount of capital the alien investor will be required to invest.
   • The timing of the investment.
   • Alien investor’s ownership interest and expected percentage of profit.
   • Roles and responsibilities of all core agencies or organizations in a proposed Regional Center’s operation.
5. Executed agreements or memoranda of understanding that clearly define, describe or specify the relationship, responsibilities, and obligations.