Source: https://www.cmbeb5visa.com/about-us/eb-5-benefits-the-cmb-business-model/
EB-5 Benefits – The CMB Business Model
EB-5 Benefits with the CMB Business Model
The formation of CMB Export, as originally constituted, was intended to assist California communities in creating new American jobs in those specific areas which have experienced the devastating economic effects of military base closures due to the determinations of the Federal Base Realignment and Closure Commission (“BRAC”). The original CMB Export geographic scope included the counties of San Bernardino and Riverside in Southern California and the county of Sacramento in Northern California. The business or operational focus of the CMB Export Regional Center designation was the rehabilitation to civilian use of the closed or realigned military bases and the areas in which they reside.
The military bases named in our original CMB Export Regional Center were George Air Force Base, Norton Air Force Base, Mather Air Force Base, Sacramento Army Depot, McClellan Air Force Base and the realigned March Air Force Base. The CMB plan was to focus on communities that contain closed or BRAC-affected military bases and helping those same communities create new American jobs. Each of these communities have experienced the economic devastation of losing the jobs and commerce the military bases formerly provided to the areas for decades. Later, CMB decided to apply the lessons learned in the initial military base revitalization to all California communities and public and private partnerships. Since initial designation, CMB’s business model in creating new jobs has been concept-driven rather than industry-driven.
The concept-driven business model with an emphasis on infrastructure development was undertaken by CMB and its EB-5 investment partnerships for several reasons. Former military base communities faced numerous challenges to rebuild or reinvent their economy. Each former military base had old military infrastructure that would not meet current modern standards. Most former military bases are faced with environmental problems, such as asbestos abatement, contaminated water tables and other significant environmental remediation impediments. Often, demolition is the first step towards infrastructure improvement. Infrastructure is the backbone of community development and provides the foundation upon which all economic activity and job growth are based. Infrastructure costs frequently are the single largest obstacles to creating new jobs and increasing regional productivity in any community development plan. CMB EB-5 investment capital helps communities balance several factors that influence both the timing of infrastructure requirements and available revenues to fund them. CMB EB-5 funds have been used in the following manner to address the challenges stated above:
EB-5 Benefits With CMB:
- CMB EB-5 capital allows the infrastructure to be phased and costs spread, so that reuse and new development activities can financially support the planned improvements.
- CMB EB-5 capital allows the infrastructure project to get started and combined with conventional development fees, lease income, land sales and other revenue sources to continue the infrastructure building and eventually fund repayment to the EB-5 project partnership.
- Once the infrastructure is built, new construction occurs, new companies bring new jobs and can apply conventional land-based financing mechanisms to build structures on the newly built infrastructure and create a new sustainable tax base.
- Once new construction takes place, Government agencies have the availability of tax increment revenue to fund a portion of the infrastructure additionally other sources of funds are available such as new market tax credits. Transit Occupancy Tax (TOT), Sales Tax and other sources of revenue private enterprises pay.
- CMB EB-5 capital acts as “seed” capital that provides funding otherwise unavailable for Government Agencies to fund the required local matching component of Federal and State grants and loans, thus increasing the capital available to be spent on infrastructure building.
- Private industry operates in much the same way as government’s. Private industry utilizes CMB EB-5 funding as seed capital to begin their projects and CMB’s six year interest only loan structure allows for projects to move forward. The projects are built, they begin generating revenue and thus have several sources available for repayment. Refinancing an existing stabilized producing asset is easier and cheaper than finding start-up capital.
The CMB business plan approach is simple. EB-5 Benefits with CMB EB-5 partnerships enter into a six-year loan that requires interest only payments. Depending on the particular project, these loan agreements are with Government Agencies, public/private partnerships or private developers. CMB EB-5 funds are combined with additional public and private funds to finance the construction of a specific project or projects. The benefit of this early-stage “seed” financing is to jump-start the activity of infrastructure construction, improvements, or repair in the absence of other reasonable funding sources. The timing and resources necessary to complete each project will vary depending on the nature of the project. Some projects are one-time events with a single participant, while other projects are multi-phase long-term projects. The availability of early-stage alternative financing for infrastructure and construction projects initiates a chain reaction of economic development that results in significant new American job creation.
Source: https://www.cmbeb5visa.com/about-us/eb-5-investing-cmb-strengths/
EB-5 Investing – CMB Strengths
EB-5 Investing
Experience: As one of the oldest Regional Centers, CMB’s staff has broad-based knowledge complemented by experience. Our team is proactive in insuring we are on the cutting edge of the rules and regulations needed to qualify our foreign national investors for a permanent visa (Green Card) for EB-5 Investing.
Our EB-5 Investment Projects: All CMB EB-5 investments contain the same underlying structure. The structure of each CMB EB-5 investment partnership has a solid foundation built with “safety” in mind towards the immigrant investors’ two most important goals, that of the permanent green card and return of their original investment from the new commercial enterprise. It is our goal that CMB projects will always contain the following attributes:
- The EB-5 investment has a transparent, proven, and previously-approved job creation methodology. Our methodology has not changed from the very first project. (Clients have already experienced their permanent green cards and return of capital.)
- The EB-5 investment is structured as a reasonably safe low-risk investment. We require the investment be with Government entities, public/private partnerships or private entities that provide specific collateral, Intercreditor Agreements (when multiple lenders are involved), and many other assurances of ability to service the debt, provide reasonable security, have a defined plan for repayment of the original investment, and most importantly can demonstrate specific spending in order to show new job creation.
- The EB-5 investment is simple with a defined exit strategy for investors. The investment is a loan that upon maturity is repaid.
- The EB-5 investment has transparency in all the financial documents.
- The EB-5 investment limits the day-to-day expenses charged to the investor (except in the case of extraordinary expenses).
- The EB-5 investment when located in a qualified Targeted Employment Area (TEA), is an investment that meets the lower threshold of investment or simply a $500,000 partnership. CMB requires the TEA status be supported with statistical data to ensure compliance with the federal statutes.
- The CMB loan based EB-5 investment has a simple overall structure.
CMB’s simple and straightforward structure is demonstrated throughout this website. CMB has taken a complex immigration EB-5 investment program and made understanding and utilizing EB-5 an easier and more transparent process for the potential EB-5 investor. Again, we recommend that you ask questions; ask hard questions and demand proof of what is stated (including from CMB). Perform the necessary due diligence; for if you the foreign national do not, failure to show ten new American jobs is devastating. As is not investing the requisite capital ($500,000 instead of $1 million). Either failure will result in the loss of the permanent green card and the immigrant investor is put in removal proceedings).
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Source: https://www.cmbeb5visa.com/about-us/eb-5-investment-with-cmb/
EB-5 Investment with CMB
Investing through our Regional Center offers the potential EB-5 investor a most expeditious and relatively safe means for a successful EB-5 investor visa. We believe adjudication of each CMB EB-5 investment is easily understood since all CMB partnerships from the beginning until present follow the same transparent and simple structure. U.S. Citizenship and Immigration Service (USCIS) adjudicators have reviewed many CMB EB-5 partnerships and in each submission the various project structures. CMB partnerships contain the same approval elements as the past 1,600 CMB approved I-526 submissions (updated on October 3, 2014). CMB EB-5 investments contain the following elements that you should consider of all Regional Centers when choosing a Regional Center for your EB-5 investment path to the United States.
Look for an Already Proven Approved Job Methodology – EB-5 Investors should be very interested in the details of any EB-5 investment project. The most important element that determines an EB-5 investor’s success in obtaining the permanent EB-5 visa (green card) is the ability to prove that ten new American qualifying jobs have been created by that EB-5 investor’s investment. The CMB approach combines EB-5 capital with non EB-5 capital. This combination of capital, creating a large overall pool of capital for project construction multiplies the job creation impact of the EB-5 investor’s funds. CMB EB-5 investment partnerships strive to create many more new American jobs than are required by statute. Regional Centers benefit from being allowed to utilize both direct and indirect job creation to support the EB-5 investor’s requirement to create at least ten new American jobs. According to USCIS, lack of proof of job creation is the leading cause of denial for EB-5 investor petitions under the EB-5 program. Typically, by the time EB-5 investors learn that there is a problem with the job creation methodology utilized by the Regional Center they have chosen, it is too late to rectify the situation. The EB-5 investors are already in the investment irrevocably and they may lose their permanent visa altogether. Proof of ten new American jobs for every member of the EB-5 investment should be one of the first considerations of every EB-5 investor!
Look for a Defined Exit Strategy – The loan term in CMB partnerships is typically six years from the time the final investor funds are placed. Once all partnership loans are repaid, the investors simply vote to liquidate the partnership. There is nothing to sell; CMB EB-5 investor partners in our partnerships are not dependent upon any segment of the economy to do well, such as real estate, travel, construction, entertainment, or the farm market for the return or preservation of their original capital. In a loan model we look to the strength of the borrower, the ability to service debt as well as repay the loan and the collateral pledged by our borrower.
Look for a Low-Risk Safe EB-5 Investment – In terms of the reliability for return of original capital, we believe CMB partnerships are structured as one of the “most conservative of all” EB-5 Regional Center investments. Many previous CMB partnerships have the pledge of governmental agencies, or the military base master developer. In the case of a private entity we look for several factors for return of the original investment as well as possible project completion guarantees, the likelihood all funds will be spent, and various collateral obligations. Frequently, CMB EB-5 investments are secured by a combination of security interests in the investment property, cash flows of the operations, and membership interests within the entities. Many times we require completion guarantees on the project to ensure project spending.
Look for Transparency of EB-5 Investment – EB-5 Investors in CMB Partnerships have a right to access partnership records. Government entity financial records as a matter of public record are also available to the general public, if applicable. Thus our EB-5 investors have insight into the financial records of the partnership and the target EB-5 investment.
Look for Independent Third-Party Audits
- Financial Information – CMB EB-5 Partnerships undergo an independent audit by a nationally recognized accounting firm. The accounting firm reviews the partnership financial statements and provides an audit report and opinion. Currently, all CMB Partnerships in existence as of December 31, 2015, have undergone such audits for the years ending December 31, 2014, and December 31, 2015. The audit report(s) and opinion(s) are published on the secure portion of the website; whereby, each client’s profile has the audit report(s) and opinion(s) concerning the CMB Partnership in which they are a limited partner.
- EB-5 Related Information – CMB EB-5 Partnerships also undergo an independent audit through agreed upon procedures by the same nationally recognized accounting firm concerning total capital raised, total return of capital, the number of limited partners, I-526 petition approvals for conditional permanent residency, and I-829 petition approvals for the removal of conditions to permanent residency. Such information is available upon request of CMB Regional Centers.
Does the Regional Center you are considering have a Cap on Business Expenses – Day-to-day CMB partnership expenses are capped. This protects the EB-5 investment from the Regional Center charging unwarranted fees. In a CMB partnership each EB-5 investor is projected to experience only a very modest return on their EB-5 investment. The reasons behind this are simple and logical. Traditionally we make low interest rate loans relative to the market place with high profile borrowers. The interest the EB-5 partnerships receive is structured to cover all day to day expenses with the exception of any “extraordinary” expenses, making the prediction of profitability of the new commercial enterprise somewhat predictable if the partnership follows the term outlined in the loan agreement. However, the General Partner compensation is based upon the foreign national investment amount and independent of any interest earned by the partnership.
Look for a Targeted Employment Area backed by statistical data, not just a state letter – Any $500,000 CMB EB-5 Partnership will contain real proof that the EB-5 investment qualifies as a Targeted Employment Area. CMB accomplishes these designations without data manipulation, which would risk denial for our client’s petitions at the I-829. We firmly believe the USCIS should deny a project and its investors at the I-829 stage if it determines the Regional Center manipulated the data to qualify for the lower threshold of $500,000. CMB performs its own analysis and provides this analysis as well as any state TEA letters to the USCIS within the business plan of an I-526 petition.
Look for an EB-5 investment with limited Day-to-Day Management – Investors in CMB Regional Center partnerships have no day-to-day management responsibilities because of CMB’s limited partnership structure. The EB-5 investor management participation requirement is satisfied within its limited partnership structure. EB-5 Investors have limited duties; one duty is related to voting such as to liquidate the partnership after all investment loans have been repaid and other obligations as set forth by the Limited Partnership Agreement.
Insure the Regional Center has authorization geographically – CMB EB-5 Regional Centers are approved to operate as a Regional Center in California, Nevada, Ohio, Florida, Georgia, Illinois, Pennsylvania, and Texas. CMB has applied for Regional Center status in Colorado and North Dakota. CMB has operated with Service Agreements in Tennessee and North Dakota. Additionally CMB operates the Iowa Regional Center.
Look for a Regional Center with Overall Simplicity of the Program – CMB EB-5 partnerships invest EB-5 funds through a loan agreement with a highly qualified borrower. Daily costs are fixed. There is nothing to sell, rent, or actively manage. The loan return is fixed and the principal has some form of collateralization. The job creation methodology is transparent and USCIS-approved at the I-526 and at the I-829 petition level for many previous EB-5 investors.
Look for experience – Navigating through the EB-5 process is difficult. Insure your choice of a Regional Center is based upon past and current performance. CMB believes the EB-5 “investment” program is not a traditional investment, rather a jobs creation program. Why? We have never had an EB-5 investor say they are doing this for a return on or of investment. Every CMB EB-5 investor wants the permanent visa, their original investment into the new commercial enterprise returned and any amount of return on investment is their last consideration. It is not a coincidence that only one unit is sold to one person. Anyone involved with the EB-5 “investment” program only participates because of the permanent visa not the “investment” opportunity. Every EB-5 investor should think backwards and put their efforts and questions on proof of job creation, for without the requisite jobs permanent residency is lost and the process will cost much more than their original EB-5 investment. Additionally, the manipulation of TEA data is becoming common place. Why is there only one $1 million program? Is the entire United States a TEA? Yes, there are Regional Centers that do not qualify for TEA status yet only have $500,000 investments. Please do your due diligence. Do not become a statistic of failure because of TEA manipulated data.
Source: https://www.cmbeb5visa.com/about-us/regional-center-approval-documents/
Regional Center Approval Documents
CMB Export:
CMB Summit
CMB Southeast
CMB Pennsylvania
CMB Illinois
CMB Texas
CMB Colorado
CMB North Dakota
CMB Nebraska
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Source: https://www.cmbeb5visa.com/
EB-5 Group IX
Crescent Dunes – Solar Reserve
What is EB-5
In 1990, Congress created the fifth employment-based preference (EB-5) immigrant visa category. Success for immigrant investors in the EB5 program results in a permanent United States visa (Permanent or green card for themselves and qualified family members under the age of 21 at the time of filing the initial petition).
- What is EB5
- Considerations in EB-5
- Frequently Asked EB5 Questions
- EB5 Questions to Ask Any Regional Center Before Investing
FAQS
We understand that selecting a Regional Center for an EB-5 investment is an incredibly difficult decision. For information, please refer to our FAQs -Frequently Asked Questions section, or feel free to contact us directly.
- Investor Frequently Asked Questions
- Questions to ask of all Regional Centers
- Immigration Issues
- Q & A For Potential EB-5 Projects
- Third Party Due Diligence Websites
Fully Subscribed EB-5 Partnerships
Source: https://www.cmbeb5visa.com/contact-us/?gclid=EAIaIQobChMI_pOYi6mg2gIVUnHgCh2uOQJ5EAEYASAAEgLJpfD_BwE
Contact Us About The EB-5 Investor Visa
• The EB-5 immigrant investor program in the United States allows successful EB-5 investors to apply for a green card (permanent residence) for themselves and qualified family members under the age of 21.• Currently the minimum investment amount for an EB-5 visa is $500,000 plus other associated costs.
• View our past fully subscribed EB-5 projects.
• View our past completed EB-5 projects with green cards obtained and capital returned to the EB-5 investors.
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