U.S. Economic Recovery through EB-5 Regional Foreign Investment Strategy

With the U.S. economy currently led by fiscal uncertainty, U.S. developers find it increasingly difficult to preserve traditional bank financing. In response, the EB-5 program for regional centers has proven to be an alternative for large-scale investment projects using foreign investment capital. In 1990, the Convention introduced the EB-5 Immigrant Visa Visa as a “million dollar” visa, which offered the first opportunity to foreign investors in the U.S. Status of living through large investments. Initially, interest in the EB-5 program was low, largely due to investors’ uncertainty and faulty source processes. As a result, the EB-5 Regional Center was created simultaneously with the profile of the program, with the number of designated regional centers increasing significantly in recent years. Currently, 94 regional centers are approved. So far, about 65 proposed Regional Center applications are still in process. The regional center is a state-nominated business which is a pilot program introduced in 1993 under the name EB-5. They are defined as economic or public entities committed to driving economic growth, increasing regional productivity, creating jobs and increasing domestic capital investment.

A foreign investor is eligible to participate in the EB-5 program if he / she is actively investing in a new commercial company. The investment requirement for foreign investment is $ 1,000,000.00, unless investments are made in rural areas or in areas with an unemployment rate of 150% of the national average. These two areas are collectively known as targeted work areas or TEA and require a reduced investment of $ 500,000. Regardless of whether it is TEA or not, investment for the U.S. should prove useful. Economy and create at least 10 full time jobs of 35 hours. An EB-5 investor must prove the source of the investment fund and expose it to the overall risk. If the project fails, foreign investors lose their investment. On the other hand, if the investment does not result in the creation of 10 jobs, foreign investors will not accept green card status.

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