IIUSA wishes the EB-5 Regional Center industry a happy birthday!
The Immigrant Investor Pilot Program (“Pilot Program”) was created by Section 610 of Public Law 102-395 on this day 23 years ago!
On October 6, 1992, Congress enhanced the economic impact of the EB-5 program by permitting the designation of Regional Centers to pool EB-5 capital from multiple foreign investors for investment in USCIS-approved economic development projects within a defined geographic region. A Regional Center is defined as “any economic entity, public or private, which is involved with the promotion of economic growth, improved regional productivity, job creation and increased domestic capital investment.” Today, 95 percent of all EB-5 capital is raised and invested by Regional Centers!
Regional Centers maximize the program’s job creation benefits by facilitating the investment of significant amounts of capital in large-scale projects – often in coordination with regional economic development agencies – which use the EB-5 funds to leverage additional capital. Regional Centers use economic analysis models, including those developed by the U.S. Department of Commerce, to demonstrate that job creation targets required by law have been achieved. For investments made through Regional Centers, at least 10 direct, indirect or induced jobs must be created.
Existing federally-designated Regional Centers include entities that are publicly owned and operated by state economic development agencies as well as public-private partnerships and private sector investment companies. A Regional Center obtains its designation by submitting a detailed application to USCIS. The application must state the kinds of businesses that will receive capital from investors, the jobs that will be created directly or indirectly as a result of the investment of capital, and the other positive economic impacts that will result from the investment of capital.
All investment offerings made by EB-5 Regional Centers are subject to U.S. securities laws, enforced by state securities regulators and the U.S. Securities & Exchange Commission.
A comprehensive peer-reviewed economic study found that during fiscal year 2013, investments made through the EB-5 program contributed $3.58 billion to U.S. GDP and supported over 41,000 U.S. jobs. And, these jobs were created at no cost to taxpayers. The Congressional Budget Office has scored the program as revenue neutral, with administrative costs paid for by applicant fees.