The EB-5 Regional Center Program (the “Program”) was created by Congress in 1992 with the intent of stimulating economic development across U.S. communities through capital investment by foreign entrepreneurs. A variety of economic impact studies have been conducted, both by academics and government agencies, to assess the Program’s impact on the U.S. economy.
In 2013, IMPLAN Group found that capital investment through the Program contributed over $2.6 billion to U.S. gross domestic product (GDP) and created or supported 33,000 American jobs during fiscal year (FY) 2010 and FY2011 (read the full study here). Furthermore, in January 2017, the U.S. Department of Commerce released its assessment on the investment and job creation impact of the EB-5 Program, concluding the Program accounted for almost 170,000 U.S. job creation between FY2012 and FY2013 (read the full report here).
In collaboration with IIUSA, in January 2018, Western Washington University Center for Economic Business Research (CEBR) published a peer-reviewed research (the “Study”) that evaluates the Program’s economic impact in FY2014 and FY2015, the latest economic impact study not only provides valuable insights into the Program’s growth over that two-year period (read the full study here).
The EB-5 Economic Impact Interactive Map (below) demonstrates the robust economic impact generated by EB-5 investments across the country at the state and Congressional district levels from FY2010 to FY2015.
The economic impact studies use a comprehensive dataset of EB-5 investor petitions and EB-5 Regional Center investments along with well-established economic modeling methods to determine overall positive impacts on GDP and job growth as well as federal, state, and local tax revenue from EB-5 investments, household spending by immigrant investors, and other EB-5 related spending. Economic benefits are measured by state, congressional district, and by impacted industry sector.
The study was conducted by David Kay of Alward Institute for Collaborative Science and peer-reviewed by Professors Eric Thompson and Hart Hodges, Past Presidents of Association for University Business Economic Research (AUBER).
These are three economic impact reports commissioned by IIUSA based on comprehensive government data including I-526 and I-829 approval and denial statistics for each Regional Center in the country and subsequent analysis of I-924A filings to track the impacts down to both geography and industry sector.
A breakdown of the physical location of the investments in “new commercial enterprises” and “job creating enterprises” that Regional Centers fund throughout the year, along with North American Industry Classification System (NAICS) codes to track industry sector impacts adds further context to the data.