Providence Film Group, a Valiant Eagle Inc. (PSRU) Subsidiary, Momentously Signs EB-5 Agreement for Its Film Production Slate and Regional Center
(newsfilecorp.com)
EB5AN will act as the regional center. They will provide consulting services and document preparation services in connection with the I-526 Application process for investors and, in particular, will review, revise, and prepare the relevant business plans and economic reports required in connection with the official EB-5 application. The complete Project Documentation I-526 Application package will be completed within eight weeks of signing, and also after receipt of the required Project information from PFG.
The EB-5 program is regional in its nature, requiring its funding be invested into specific areas within the USA. The two prominent studio facilities chosen by PFG, the L.A. Center Studios in downtown Los Angeles (“The X Files”, “Mad Men”, “American Crime Story”, “Mr. and Mrs. Smith”,”T3″, “MI-2”), and the L.A. Castle Studios in Burbank, California (“The Mummy”, “Greenland”, “Bosch”, “Deadliest Catch”), fulfill this area requirement. It is foreseen that the PFG slate will be based around one or both of these studio facilities.
The EB-5 program is a U.S. Visa program designed to allow foreign investors to gain permanent residence into the United States. It requires a minimum investment of $900,000 (if investing in a targeted employment area, or TEA) or $1,800,000 (if investing in a non-TEA) to finance a business in the United States which will employ at least ten American workers. The EB-5 program is intended to encourage both “foreign investment and economic growth.”
Providence Film Group’s parent company, Valiant Eagle Inc., is utilizing the consultancy services of the EB5AN to ensure all appropriate EB-5 information, resources and documentation is adequately tailored to the EB-5 program’s specific needs. With EB-5 investments in place, Providence Film Group will have funding for the many different projects within the company.
Providence will fund and produce productions in targeted employment areas located in Los Angeles County. In the past decade, a significant amount of California-based productions have “run away” to other states, or to Canada, where there are greater finance incentives, including film tax credits, that California historically has not offered. Operating as a financing incentive to keep these “runaway productions” in Los Angeles and to help create jobs in the United States, the EB-5 loan will create and preserve important film production jobs in the region.
Xavier Mitchell, the CEO of Providence Film Group, says, “Our company is very excited to receive the EB-5 investment. We’ve worked for years to secure this deal. Providence Film Group has some great projects underway, and this investment will help bring our projects to life. We easily anticipate our project slate will generate in excess of $200M in revenue. The number of jobs we will create cannot be understated. With COVID-19 having such a disastrous impact on employment in Hollywood, we are confident the production climate will greatly benefit from our efforts.”
Providence Film Group is not the first film production company to use EB-5 investments for its projects. In the past, and among other companies, Time Warner borrowed $47.5 million, $100 million, and $125 million in EB-5 funds in three separate offerings. Lions Gate Studios borrowed $66 million and $50 million in two different offerings, and Sony was provided $125 million to underwrite its movie and TV productions (https://dlgimmigration.com/eb-5-film-fund/).
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