The Impact of the EB-5 Immigrant Investor Program to the U.S. Economy: American Jobs & Economic Impact of EB-5 Investments, 2010-2011
The EB-5 program contributes significantly to the US economy. It provides much needed capital to areas hit hard by the recent recession and struggling with high unemployment rates. The ripple effect of the program creates jobs throughout the economy, including indirect employment and through household and other spending by immigrants when they arrive in the US (i.e., houses, cars, and so forth). Each immigrant investor must create 10 US jobs with an investment of $500,000 or more.
The Minnesota IMPLAN Group (MIG) conducted an economic impact analysis to assess the EB-5 investor visa program and its effect on the US economy.
EB-5 spending in 2010-11:
>> supported 28,000 jobs
>> contributed $2.2 billion to the US gross domestic product (GDP)
>> accounted for $346,790,317 in federal taxes and $218,437,866 in state and local taxes.
EB-5 capital creates jobs in more than 24 US states, including, California, Florida, Michigan, and Texas. EB-5 household spending supports jobs in every state in the US.
The roughly $2 billion of EB-5 capital investment in 2010-2011 supported many US industries, including:
• > Dairy
• > Electric power & natural gas
• > Construction
• > Wineries
• > Commercial
• > Retail
• > Transportation
• > Warehousing & storage
• > Motion picture & video
• > Real estate
• > Home health care
• > Hospitals
• > Amusement parks
• > Hotels
• > Food services
• > Student housing
US Mayors Support EB-5
The EB-5 Immigrant Investor Jobs Program received high praise at the 81st US Conference of Mayors Annual Meeting in Las Vegas in 2013. The mayors issued a resolution that Congress advance the EB-5 program within comprehensive immigration reform and that they also authorize more visas for the program to create more US jobs.
The resolution says that EB-5, since its inception in 1993, has become a vital source of urban redevelopment funds.
Forty additional regional investment centers have been approved in 2013 alone, and there are currently 7,000 pending applications for EB-5 visas, representing $3.5 billion in potential direct investment and 70,000 American jobs. Mayors are working with developers to use EB-5 foreign direct investment to finance job- creating projects and downtown revitalization projects.
The mayors’ resolution urges Congress to “include a robust EB-5 program in the immigration bill, including additional visas, permanent authorization of the regional center program and streamlined approvals for all applications.”
Posted by Michael B. Dye, Esq.