Throughout Q3 of 2012 The Association to Invest In the USA (IIUSA) compiled 39 articles highlighting EB-5 Regional Center regional economic development. The three-year reauthorization enacted by Congress and signed into law by President Barack Obama in September 2012 was reported by multiple media outlets – no surprise given the bipartisan and unanimous support in the Senate and a 412-3 vote in the House. It was welcome news around the country.
Media outlets focused attention on EB-5 related projects/news in 13 states and two foreign countries including: California (3), China, England, Florida (5), Minnesota, Nevada (2), New Hampshire, New York (5), North Dakota, Pennsylvania, Texas (6), Utah, Vermont (10), Washington, and Wisconsin (3).
The Program’s three-year reauthorization could not have come at a better time for the State of Vermont. Vermontbiz.com published an article detailing a “$500 million development in the Northeast Kingdom” being partially funded by the EB-5 Program.
Senator Patrick Leahy, author of the bill to reauthorize the EB-5 program, announced the new projects on the heels of President Barack Obama’s signing the bill into law.
“The new charter is in place right on time for investments like those just announced in Vermont. Our state has been a leader in using the EB-5 program to create jobs, and no region of Vermont has succeeded more with these investments than has the Northeast Kingdom.”
“These new projects are expected to raise nearly $500 million in capital investment and create thousands of jobs for Vermonters.” Said Senator Leahy in the piece, “President signs foreign investment program ‘EB-5’ bill into law.”
The three-year EB-5 Program reauthorization passed unanimously in the Senate and overwhelmingly in the House at 412-3 vote in favor of the bill. IIUSA Executive Director, Peter Joseph, spoke with Hispanically Speaking News about the Program’s domestic and global popularity.
“This program helps create jobs here and has had great bipartisan support in the past. It’s like an economic stimulus plan without costing U.S. taxpayers anything…. It’s something where everyone wins, both our country and the foreign investors.”
In “EB-5 Visa Program for Foreign Investors, Businessmen Set to Expire in September” Joseph added, “We live in a hyperconnected world, where capital and human resources flow across borders, and this program responds to that macroeconomic reality. The United States is facing a slow economic recovery and Europe is already in crisis.”
Brian Tracey, author of The National Housing Conference’s “Open House” article, “Growing the economy by using community development programs differently” cites IIUSA data on Program fertility. “The Immigrant Investor Program, or EB-5, has generated more than $3 billion of foreign capital in the U.S. economy – creating at least 65,000 jobs – since 2003, according to the Association to Invest in the USA, a trade association of EB-5 Regional Centers.”
The overwhelming bipartisan support of the EB-5 Program will pave the way for even more EB-5 capital formation and U.S. job creation in the 21st century.
Bruce Gjovig, Director of the UND Center for Innovation Foundation, sounded off on the importance of the Program as a fundraising provenance. “Sources of equity especially in rural areas is a very difficult thing to secure and find, and this is a program that’s designed specifically for equity into firms in targeted areas or rural areas and growing firms.” Gjovig said in MPRnews article, “Visas in exchange for foreign investments”.
Target Employment Areas, both rural and urban, have been home to an eclectic mix of EB-5 ventures. According to The Business Journal reporter Rich Kirchen, IIUSA member Robert Kraft and FirstPathways Partners LLC, has committed to raising $20 million of EB-5 capital for Erik Buell Racing LLC – yes, the motorcycle legend from Harley Davidson.
Kirchen estimates that the project will, “generate 200 new jobs” at Buell’s East Troy, Wisconsin motorcycle manufacturing plant. He quotes Kraft in his piece, “Buell is back: $20M in foreign capital has motorcycle firm racing to production.” Stating that, “This investment in a growing American company is what the EB-5 program is all about.”
Q3 of 2012 saw veteran EB-5 supporters deliver continued success. On September 20th IIUSA member CanAm Enterprises LLC published, “CanAm Enterprises Announces 13th EB-5 Project Repayment,” detailing the completion of another EB-5 funded project with immigration benefits and return of capital successful executed.
“Aker Philadelphia Shipyard, Inc. (‘Aker’) repaid its $20 million EB-5 Partnership Loan to CanAm’s Philadelphia Industrial Development Corporation (PIDC) Regional Center. The Aker project is the 13th CanAm EB-5 project that has successfully repaid its investors 100% principal.” IIUSA congratulates and applauds CanAm Enterprises for its successful utilization of the EB-5 program to infuse new capital in the U.S. domestic economy for the purposes of regional economic development and job creation.
In sum, FY2012 was already record breaking – with over 7,500 visas issued over the entire year (more than double FY2011). FY2013 is already off to a similar start, with the above detailed results speaking for themselves. Congress deserves credit on reauthorizing the Program in September. This program works.