What is the power of the EB-5 Program? How does it benefit the U.S.?
Some lawmakers have been very critical of the investor program, but are they be missing all the benefits the EB-5 Program has to offer? Are they missing the power of the EB-5 Program?
Are they looking at the program all wrong? Here's the power of the EB-5 Program in 3 key points:
- It creates jobs for U.S. workers.
The EB-5 Program was developed by Congress in 1990, as a way to stimulate the U.S. economy by allowing foreign investors to obtain green cards by investing a minimum of $500,000 in U.S. companies and creating 10 full-time jobs for qualified U.S. workers. The foreign investor must provide substantial proof that their investment fulfilled the job requirement. Not only are foreign investors adding $500,000, or in some cases $1,000,000 to the U.S. economy, but their growing the job market.
- Develops projects that may not otherwise be built.
The EB-5 Program gives project developers a key way to raise low-cost funding, when traditional methods aren't available. In this market, traditional lenders are still hesitant to loan large amounts of money. Therefore project developers are not able to secure the loan amounts they need to complete their projects. In some cases, lenders have stopped loaning any amount. EB-5 fills the void left by traditional lenders and allows developers to raise the capital they need when no other lending options are open to them. A few EB-5 project developers have been able to raise as much as 300 million in EB-5 capital. Without the EB-5 Program many developers would not be able to develop their projects. More projects being developed would be good for the U.S. economy.
- Economic growth at no cost to the U.S. taxpayer.
According to the U.S. Department of Commerce, in Fiscal Year 2012 and 2013 more than 11,000 immigrant investors provided $5.8 billion in capital funding in 562 EB-5 related projects that created an estimated 174,000 jobs. These jobs were created at zero cost to the U.S. taxpayer. Additionally, in those same years, the job creation requirement was only 110,000, but the actual job create number was an estimated 174,000 meaning they created 58% more jobs than was required by the Program.The EB-5 Program is a very strong method for U.S. economic stimulation and job growth.