By Louis Haddad
Palm Beach Regional Center (PBRC) serves nine counties that include Miami/Dade, Broward, Martin, Port St. Lucie, Indian River, Hendry, Okeechobee, Lee, Charlotte and Palm Beach, the largest county southeast of the Mississippi River.
PBRC is a model of diversity and innovation that truly represents the best of what Florida has to offer.
From agriculture to technology, media to hospitality, there is a wealth of opportunity for businesses to blossom on both a regional and international stage. These industries include those for which Palm Beach Regional Center (PBRC) has been specifically approved: transportation facilities and infrastructure, warehouse and cargo terminals, biotechnology and related high technology manufacturing, solar panel manufacturing, water treatment plants, office buildings, hotels, film and television production, renewable energy technologies, health care facilities, financial services, agricultural activities, and restaurants.
The area’s international appeal makes it a haven for people from all over the world, and easy access to shipping and transportation modalities serve as the gateway to the western hemisphere.
Palm Beach Regional Center is able to advance EB-5 funds to project recipients in one of three ways:
Once an investor decides to invest in a particular project, the investor's funds are advanced to a company formed solely for the basis of channeling investment to that project. In the event that the Investor's petition is ultimately denied by USCIS / DHS, the funds will be returned to the Investor.
If funds are advanced on a debt basis, the investment manager will grant a loan for a fixed period (five years) at a fixed interest rate. Interest payments will be shared with the investor, thereby providing a fixed income for the duration of the investment.
Alternatively, funds may be advanced by the investment manager on an equity basis, whereby shares in the project recipient will be granted to the funding company. The funding company would expect to receive a proportion of any profit distributions in accordance with the shareholding.
Again, any such distributions will be shared with the investor, thereby providing income for the duration of the investment. We would expect the project recipient to buy back its shares no earlier than 5 years after funds are released into the Project.
The EB-5 Regulations require that the investor must be engaged in the "management" of the enterprise. In this regard, our EB-5 Program invites investment into a limited liability company (funding company) formed solely for the purpose of channeling Investor funds to the relevant EB-5 Project.
Pursuant to regulation, our projects have been structured so that investors will participate on the funding company's Board of Members with the rights, powers and duties described in the offering documents.
Accordingly, the investor will be considered sufficiently engaged in the management of the enterprise, and as a practical and legal matter, the management requirement will be met without the necessity of the investor committing to any specific amount of time or engaging in any day-to-day management.
In all cases, funds are advanced only in return for adequate security and suitable covenants as to job creation.
The Investor Pack includes PPM, Offer Memorandum, Agreements, Economic Analysis and Business Plan.
PBRC believes that investors, especially those outside the US, deserve a straight path for their investment.
Foreign investors need to be able to rely upon companies with regional expertise and the ability to facilitate all aspects of a project, from development to dividends.
And since many PBIF projects deal with the expansion of regional commercial infrastructure, PBRC members can invest with confidence. Not only can their investments qualify them to gain legal residency and a share in the project’s ownership, but they will also be contributing to increased commerce to the region, and therefore promoting the value of their own investment, and those of others.
ABOUT THE AUTHOR: Louis Haddad, a senior executive and labor-management relations professional with a wealth of international trade consulting experience. LEARN MORE ABOUT LOU