How the Experts Get Foreign Dollars into US Projects
September 3, 2009 by Dr. Letitia Wright
Filed under Featured Articles, Wright Ideas
This article is about the EB-5 program used by entrepreneurs to bring in millions of dollars into US projects. My hope is that this will stimulate marketing ideas for those with smaller projects.
A little known immigration program is helping entrepreneurs get their businesses off the ground or highly expanded. It’s called EB-5. The program is supposed to expire in September 2009 and there are senators pushing to get this renewed. Here is how the program works: The program grants temporary visas to foreigners who invest at least $500,000 in distressed areas. If an investment creates at least 10 jobs for American workers, the temporary visa can become a permanent green card. Last year, 945 EB-5 immigrants invested more than $400 million in U.S. ventures.
Some people think this is how people are buying their way to the front of the immigration line. Others feel the big benefit and helping struggling entrepreneurs with capital. Distressed areas that win "regional center" status from the U.S. government can market local ventures to overseas investors who become equity partners. Today there are 46 regional centers scattered across the country, offering investments in everything from Napa Valley vineyards to ethanol plants.
Even Aloft Hotel was able to get in on this cash infusion. There are 10,000 of these visas each year. 3,000 of them are set aside for 3,000 are set aside for those who apply under a pilot program involving a USCIS-designated "Regional Center." A Regional Center is an entity, organization or agency that has been approved as such by the Service, it focuses on a specific geographical area within the United States and seeks to promote economic growth through increased export sales, improved regional productivity, creation of new jobs, and increased domestic capital investment.
An alien investor can qualify for the program if they can demonstrate that a "qualified investment" is being made in a new commercial enterprise located within an approved Regional Center and show, using reasonable methodologies, that 10 or more jobs are actually created either directly or indirectly by the new commercial enterprise through revenues generated from increased exports, improved regional productivity, or job creation by using this pilot program. They have to invest at least $1 million dollars or $500,000 if the targeted area has experienced at least 150 times the national average of unemployment.
Vermont has been very successful in marketing this. They have welcomed 35 investors and created jobs for 350 people in Vermont. 17.5 Million dollars was brought in. They have 100% success and claim the most successful EB5 program. With this program, in 5 years an investor could be a citizen of the United States.
They also give the investors other perks. Vermont’s Jay’s Peak Program offers 2 weeks at the resort, children attending college and schools at resident rates and no day to day business management.
The main idea here what incentives can we add to what we offer to bring in investors or bring in more business? Share yours below!
How to Work with Less Small Business Loan Options
August 5, 2009 by Dr. Letitia Wright
Filed under Featured Articles, Wright Ideas
This article will give you some ideas on what loans are available for the small business owners and how you can use them to grow your business.
The hardest thing about being in business can be getting working capital in tough times. While more sales is ultimately the best way to work out of a tight money situation, many business owners look at getting business loans. It is exciting to think that President Obama is thinking about small business owners and trying to put something in place for us. Right now the reality is a little different. Business owners need to have a deeper understanding of what is going on around them.
Wright Place TV Show is located near Los Angeles and the Santa Ana SBA office serves us. They have admitted that only 10 out of the 250 banks registered with them have contacted them to say that they are participating in the ARC loan program. When I asked viewers for their personal experiences of trying to get an ARC loan, all of them related negative experiences. The bank personnel didn’t not know anything about ARC loans. One viewer says the bank he went to told him that they had no more applications. In the world where banking is run on computer, it is hard to think a paper application was the only way he could apply.
In the past, business owners have used Business Cash Advances, Equipment Collateral loans and SBA guaranteed loans. You can get a business cash advance loan even if you have tax liens and credit issues. A traditional bank will not want to work with that. Business cash advances are given without a personal guarantee or collateral. It can be expensive yet quick to get. A Streamlined Business loan is also known as a merchant cash advance. You use your personal guarantee to cut down the cost of the working capital loan significantly. For people with credit score of 690 or higher and 2 years of tax returns, the applications will be processed quickly.
If you opt for an equipment collateral loan, you will give a personal guarantee and the equipment for collateral. If you are buying brand new equipment, this is how you would finance it. Used or already owned equipment will get you about 50 % of the value in hard cash. Again, you must have good credit, the collateral and a personal guarantee.
Private money is an option which is often overlooked. Sometimes when only a small loan is needed this is a good way to go. For those still investing in real estate, private money is a fast way to go. Finding places through http://www.mywealthgiveaway.com can help you connect to the money and investors quickly.
Next Steps: Look at what is available to you from SBA, then look at private money at http://www.mywealthgiveaway.com. And grab your free EBook on private money at proof@getresponse.com
ARC Loan Mistakes
August 2, 2009 by Dr. Letitia Wright
Filed under Featured Articles, Wright Ideas
This article will cover the mistakes business owners make in trying to get and ARC loan and what you can do to avoid the same mistakes. Mistakes are time wasters and time is of the essence when it comes to getting the ARC Loans.
Mistake 1: Not understanding there is a time limit. Yes, ARC loans became available in June of 2009; however, there will not be there forever. By knowing the deadlines and anticipating how much time it will take you to apply, you can avoid rushing. Rushing your paperwork will cause you to forget or leave out important information. Information gathering will be vital to creating an application that will get you the money.
Mistake 2: Not asking for the top amount. You need to know the maximum amount you can ask for and ask for it. This will bring you up to date with a lot of other bills. People are afraid to ask for more than they ‘need’. If you business is to expand, you have to do more than just get enough to keep you going. You have to get enough to go past survival and into Thrive. Ask for the proper amounts.
Mistake 3: Applying to the wrong banks. Not every bank will be doing these loans. Many banks do not think these loans will help. They think of the loans as being a problem in the long run. Some banks who are saying they are doing the loans are not up and running yet. I have had people write me at the Wright Place
TV Show and tell me, the bank they called, didn’t have the paperwork and were not ready to take applications. Some banks, no one knows anything about the ARC loans, or who they work. So do not waste time running from bank to bank. Start with your own business bank. You have a relationship with them and you can easily speak with someone who will tell you, what your bank is willing to do.
For more information on ARC Loans, grab your free audio cd at http://wrightplacetv.com/arc-loans
