(Continued from last weeks analysis of the IIUSA Commissioned Economic Impacts of the EB-5 Immigration Program, 2010-2011. Click here to read that summary.) Last week, IIUSA detailed the meticulous methodology utilized by Minnesota IMPLAN Group, Inc. (MiG) in its IIUSA-commissioned, peer-reviewed economic impact study of the EB-5 Program for 2010-2011. This week we look at the difference between the IIUSA-commissioned study with the USCIS commissioned study “published” in 2010 (IIUSA had to file a Freedom of Information Act (FOIA) request to finally obtain the report, which can be found HERE). The IIUSA-commissioned report showed that the EB-5 Program annually contributes billions of dollars in capital investment, create tens of thousands of U.S. jobs and generate hundreds of millions of dollars in federal, state and tax revenue. These findings were much larger than those of the USCIS-commissioned study…
- The USCIS study only considers investment impacts at a national level. Meanwhile, IIUSA-commissioned report expands the scope of analysis to include impacts at the state and local levels.
- USCIS bases its results on a small sample size between the years 2001-2006. On the other hand, IIUSA commissioned MiG to utilze comprehensive investment statistics for all Regional Centers as reported on Form I-924A in 2011.
- The IIUSA-commissioned report is based on statistics that show the beginnings of the Progam’s exponential growth in recent years, while the USCIS-commissioned report mixed an old sample of investor petitions (2001-2006) and anecdotes from 2008-2009 Regional Center interviews to draw its conclusions. To show the growth of the program over this time period, in 2006 there were 336 approved I-526s and 68 approved visas. In 2012 the number of approved I-526s grew nearly ten-fold to 3,677 and approved visas increased to 6,514, an increase by a factor of nearly 100.
- The IIUSA-commissioned report includes a more realistic indication of spending impacts that EB-5 investors provide to the U.S. economy. The assessment relies upon the assumption that each approved I-526 represents a $500,000 investment. The report allocated each Regional Center’s total investment amount proportionately to each of its individual investments, and then allocated each individual investment proportionately to their respective NAICS sectors. This again was possible thanks to IIUSA’s comprehensive I-924A statistics for Regional Centers.
- Additional spending inputs include immigration expenses such as flights, moving services, automobile purchases, investment & legal services and government fees. The 2010 USCIS report does not take these factors into account.
As we have all known for a long time, the EB-5 Program contributes substantially to the U.S. economy, with its contribution growing every day. It is gratifiying to see the data begin to catch up with the growth and a methdology that captures a more comprehensive picture of that economic impact. It is a testament to all of your hard work driving regional economic development in your local communities with the EB-5 Program.
STAY TUNED FOR THE 2012 REPORT CURRENTLY IN PROGRESS, BASED ON ANOTHER COMPLETE DATASET OF REGIONAL CENTER INVESTOR STATISTICS FOR 2012!