The EB-5 Program is a great opportunity for entrepreneurs and investors to invest in US companies, and to obtain a green card in the process. It is also an amazing funding source for entrepreneurs in the United States trying to raise capital of $500,000 or more. Growing up in South Dakota (USA), I've seen first hand how the EB-5 program has helped agriculture and food processing related businesses become a reality. When the companies looked for funding options, they learned about the EB-5 program's low interest rates and opportunities to borrow the money they needed.
When Think Entrepreneurship analyzed our visitor stats and found that 35% of our visitors are from countries other than the United States, I thought the EB-5 program would be a great topic to do a post on. I realize that it may not benefit smaller companies as much, but if you are growing rapidly and need large investments, the EB-5 program and Regional Centers are great resources.
Breakdown of Web Traffic to ThinkEntrepreneurship.com
Here is a break down of the web traffic that comes to Think Entrepreneurship. As you can see, 65% of our visitors come from the US. 5.94% of our visitors are from India, followed by 4.29 % from Canada and 4% from the United Kingdom. The remaining visits come from various other countries.
Below is an article written by Kim T. with Eb5Investors.com. Kim is an expert in the field who seeks to help investors and entrepreneurs learn about the program.
Money is hard to come by nowadays.  Entrepreneurs have been finding it difficult to finance their business ventures, especially in today’s grim economy.  Thus, many entrepreneurs have started to opt for other alternatives to finance their projects. The EB-5 Program, or Immigrant Investor Program,  designated by the United States Citizenship and Immigration Services (USCIS) agency, has become an increasingly popular program among business people. Though the great recession has made it difficult for U.S. commercial developments to find funds domestically, part of that funding void has been filled by deep-pocketed foreign entrepreneurs from around the globe, notably China. Within this year alone, the EB-5 Program has pump over $2 billion into the U.S. economy and has generated nearly 42,000 jobs.
What is the point of the EB-5 Program?
The Program was initiated by the United States Congress as a means to promote economic growth and job creation through substantial foreign investment. In exchange for their investments, immigrant entrepreneurs are qualified to obtain an EB-5 Visa, or green card.
How can a foreign investor get a green card?
There are two ways a foreign entrepreneur can receive a green card through the EB-5 Program, either by investing $500,000 or $1,000,000 in a new commercial enterprise. If the investor chooses to opt for the first option he or she must invest in a Targeted Employment Area (TEA)—a rural area or an area experiencing 150% of the national unemployment rate. On the other hand, if the investor picks the latter option he or she can invest in any desired location. However, it is important to note that with either option the business venture must create or preserve 10 full-time jobs within two years.
What do you invest in?
Most immigrant entrepreneurs choose to invest their money in Regional Centers. Regional Centers are economic enterprises that promote economic growth, job creation, and increased domestic investment. The EB-5 Regional Center arrangement has become the most popular method within the Program for the following reasons: the arrangement encourages investors to set up a team of U.S. based managers who can assist them to manage their investments, ensure that the commercial enterprise complies with the USCIS’ regulations and to draw in multiple foreign nationals into the project. Another noteworthy benefit of the Regional Center Program is that it provides a looser restriction on the job creation requirement. An investor that has established a commercial enterprise not considered to be a Regional Center must show that 10 full-time jobs have been generated as a direct result of the investment, whereas an investment made in a Regional Center can meet the job creation requirement by showing 10 full-time jobs have been created either directly or indirectly.
How has the EB-5 program helped entrepreneurs and businesses in the United States?
While the U.S. has gone through an extended recession, several other nations located throughout Asia and South America have experienced an unprecedented amount of economic growth and prosperity. This occurrence has helped many commercial developments, which are unable to be financed locally, to be financed by foreign investors. Ultimately, immigrant entrepreneurs can be seen as a boon to many developers, especially among those whose developments are located in towns that have been hit hard by the economic downturn.
Many recently developed commercial enterprises, such as shopping centers, restaurants, and theaters would not be in existence if it weren’t for the Immigrant Investor Program. Another business to add into that list is hotel development. For example, the Marriott International has received financing for their new hotels from foreign investors. So far, 14 Marriott projects, located in various cities across the nation, have been funded by the EB-5 Program. Many developers from other hotel enterprises, such as Hilton Worldwide and Hyatt Hotels, have also joined the bandwagon. Investing in the hospitability industry can be seen as a safe investment for immigrant entrepreneurs as it will most likely fulfill the job creation requirement and provide a strong rate of return. This safe investment is also a win for the local economy as it will help supply a great number of jobs and pool in other investments into the region.
Since the economic crisis of 2008, the EB-5 Program proves to be a great alternative to the unavailable financing witnessed domestically. With financing almost diminished, many developers have reached out to foreign investors to jumpstart their long awaited projects.
Kim T. –Â EB5Investors.com is a helpful informational portal that provides several resources regarding the EB-5 Visa program.
