Industry trade group to highlight Program’s benefits to U.S. economic development policy
On Wednesday April 13th, the Senate Judiciary Committee will hold its second hearing of 2016 on the EB-5 Program titled, The Distortion of EB-5 Targeted Employment Areas: Time to End the Abuse. Executive Director Peter D. Joseph will serve as a witness on behalf of Invest in the USA (IIUSA), the largest and most diverse association of the EB-5 Regional Center industry. The hearing will commence at 10:00am EST and can be viewed at this link.
“On behalf of IIUSA, I am honored to provide testimony to the Senate Judiciary Committee on Targeted Employment Areas in EB-5 and look forward to adding our voice to the public conversation on the topic,” said Joseph. “Since our founding over a decade ago, IIUSA has proudly worked closely with congressional offices on reform efforts and program reauthorizations made possible by the continued bipartisan, bicameral support of the Program. We collectively represent big and small projects, serving urban and rural communities, and catalyzing economic development in industry sectors ranging from real estate and manufacturing to energy and infrastructure and more. IIUSA remains committed to working with Congress and the industry to ensure the shared goals of needed reform and long-term reauthorization.”
The hearing will feature two panels. On the first panel, House Judiciary Committee Chairman Bob Goodlatte (R-VA, 6th District) and Ranking Member John Conyers, Jr. (D-MI, 13th District) have been called as witnesses. Testifying alongside Mr. Joseph on the second panel are Mr. Daniel J. Healy, Chief Executive Officer, Civitas Capital Group (also a former member of IIUSA’s Board of Directors), Mr. Timothy Whipple, J.D., Former General Counsel, Iowa Economic Development Authority and Mr. Gary Friedland, Professor, New York University Stern School of Business.
A Targeted Employment Areas (TEAs) is an area which, at the time of the EB-5 investment, is either a rural area, or an area with an unemployment rate of at least 150 percent of the national average. In designated TEAs, the minimum investment for an EB-5 investor is $500,000 instead of $1,000,000. To review frequently asked questions (FAQ) about Targeted Employment Areas, click here.
The EB-5 Program emerged as a much-needed foreign direct investment into the U.S. since the financial crisis in 2008, growing from a few hundred million dollars then to over a billion dollars per quarter in 2015. Exponential growth over 1,200 percent over the past eight years brings both opportunities and challenges. IIUSA supported 2015 efforts at reform and long-term reauthorization of the EB-5 Regional Center Program to increase stability, improve program integrity, and enhance economic impact. Congress instead reauthorized the Program as is through September 30, 2016 and has since held multiple hearings on EB-5 this year.
Founded in 2005, IIUSA is the national not-for-profit trade association for the EB-5 Regional Center industry with a mission of advocacy, education, industry development, and research. The organization represents more than 270 Regional Centers and 190 associated members. IIUSA’s members are engines of economic growth and job creation, accounting for over 95 percent of capital flowing through the Program. Learn more at IIUSA.org.