On October 1, the Fifth Employment-Based preference (EB-5) Regional Center program was extended to Dec. 11 in order to give Congress more time to draft a long-term resolution. The program helps provide a crucial boost of foreign capital through investments from foreign nationals looking to attain Green Card/Permanent resident status through the program.
The EB-5 program impacts local economy as well as the national economy.
A base investment of $900,000 would create at least ten jobs, since that
is the requirement for a foreigninvestor looking to acquire permanent resident status. These investments often
occur in industries in Targeted Employment Areas (TEA’s), creating
jobs and generating capital in areas that sorely need them. The direct
effects of an EB-5 investment also include contributions to the Gross
Domestic Product (GDP) and State, Local, and Federal taxes. Along with
the inevitable job increases, the EB-5 program also helps stimulate the
economy through household expenditures, as the investors themselves will
contribute to the economy through every-day household needs (automobiles,
moving, travel etc.). Given the state of the U.S. economy, the influx
of money from foreign investors would improve the job market and overall
cash-flow in foreign and domestic areas.
If, by Dec. 11, Congress decides to increase the visa limit to the desired
20,000/year, the program would be able to support over 100,000 jobs for
Americans and generate billions of dollars to the U.S. GDP. Those numbers
are almost 1/3 of that as the visa limit currently stands. In order to
prove that their investment has generated and supported 10 full-time jobs,
the investor must fill out a form I-829. Once approved, immigration restrictions
are lifted. Given the desire for the EB-5 investor to become a full-time
U.S. citizen, it is clear that jobs are almost always guaranteed to be
created through the EB-5 regional center program.
During the 2013 fiscal year alone, spending associated with EB-5 Regional Center investors contributed $3.58 billion to U.S. GDP and supported over 41,000 U.S. jobs. Their spending contributed over $750,000 to federal and local government tax revenues. The EB-5 provides jobs for all sorts of industries, including hospitals, construction, legal services, wholesale trade, real-estate, restaurants and transportation. Although most of the investors gravitate to the larger states and cities, as do most people, investors target all TEA’s where investments are needed to help stimulate the economy.
In a time in our country where it has become increasingly difficult to
secure and use traditional sources of financing for development projects,
such as traditional construction loans, developer equity and tax credits,
EB-5 investments have become an increasingly useable and important source
of finances. Those on an EB-5 visa have a great incentive for their investment
to be successful, as they came to the U.S. searching for the best way
for them to obtain a permanent residency visa. In order to do that, they
must create jobs. EB-5 investors handle all kinds of investor-driven projects
on every scale.
The EB-5 program not only helps many immigrants looking to acquire a Green
Card, but also provides a significant contribution to the economy and
well-being of the United States.
Here at the Law Firm of Shihab & Associates, Co., LPA, our EB-5 practice
team informs individuals on the advantages and disadvantages of individual
and regional center EB-5 petitions, as compared with other immigration
options, and offers advice on reputable regional centers with proven track
records. We guide our clients through the entire process; from thorough
documentation of clients’ lawful funds, to filing for conditional
residency, followed by removal of condition, and finally applying for
citizenship.
Contact us today for a Consultation.
1) The Economic Impact and Contribution of the EB-5 Immigration Program,
https://iiusa.org/blog/wp-content/uploads/2015/05/Economic-Impacts-of-the-EB-5-Immigration-Program_2013_FINAL-web.pdf
, Kay, David, Invest in the USA blog, May, 2015.
2) The Economic Impact of Individual Immigrant Investors in the EB-5 Program:
A Case Study, http://www.eb5investors.com/magazine/article/economic-impact-of-individual-immigrant-investors-in-eb5-program
, Scott W. Barnhart, Ph.D and Cora M. Barnhart, Ph.D, EB5 INVESTORS MAGAZINE,
08/20/2015