How Do EB-5 Investments Positively Affect U.S. Communities?
America is a nation of immigrants. It is the dream of many all over the globe to live and work in the United States. EB-5 investments and EB-5 investors contribute to the economic development of the U. S. and add to its diversity. They are an important part of the powerhouse success story that is the U.S.A.
Creation of 10 Full-Time Jobs
Perhaps the most obvious way in which EB-5 investors positively affect U.S. communities is by the creation of full-time jobs. While the EB-5 investor program requires the creation of a minimum of 10 full-time jobs, it is not uncommon for a Regional Center or direct investment to contribute far more to job growth, both directly and indirectly. Large regional centers may become major employers in their locations. Nothing benefits a community more than good jobs paying good wages. In the U.S., full-time employment generally means employer-provided healthcare coverage, and that increases the overall health and well-being of a community. When people have viable employment, they will spend more money and invest in big-ticket items such as houses and motor vehicles, thus boosting the economy.
Increasing the Value of Surrounding Properties
When EB-5 investors invest in Regional Centers, they are helping to increase the value of surrounding properties. Regional Centers may consist of private or public bodies and involve many types of commercial ventures and industries. A major Regional Center provides employment and increases the value of nearby properties, whether residential or commercial. People often want to work, shop and live in the same areas.
More Money for Services
Regional Center projects increase a municipality’s tax base. That means lower taxes for residents and more money to spend on services such as schools, infrastructure, police and firefighters, hospitals, recreational facilities and public transit. A town with a healthy tax base is a strong community.
Bringing Capital to Underserved Areas
Investors know that large amounts of capital are necessary to support economic growth. After the Great Recession, such capital was harder to come by than ever, especially for projects in poor communities with high unemployment rates. Real estate developers often found it nearly impossible to obtain commercial development loans for projects in these areas. The EB-5 investor program brings capital to underserved communities, and the resulting development is often transformational. In many cases, EB-5 investments have helped to stabilize declining communities and brought in new residents. Healthy communities are growing, while unhealthy communities are stagnant. The projects brought to life by EB-5 investors can help reverse decline and bring new jobs – and hope – to communities neglected for too long.
Helping a Region
EB-5 investments may do more than improve a local community. They may help revitalize an entire region. Regional Center developers pool the money of various EB-5 investors when initiating projects and often work with regional economic development agencies. These agencies know where projects are most effective for job creation and subsequent development, and an EB-5 investment can kick start growth within a large area.
Improved Quality of Life
Even if a U.S. resident does not benefit directly from an EB-5 investment as their employment has nothing to do with an EB-5 project, they benefit indirectly from an improved quality of life. Many EB-5 projects involve development that helps everyone in the region. For example, in New York City, EB-5 investors have made improvements to the George Washington Bridge Bus Terminal and even the wi-fi system on the New York City subway. When someone on the IRT line experiences a good wi-fi connection on their computer and can get a little work done on the commute home, they probably do not know to thank an EB-5 investor. They do know, however, that the connection’s quality has improved, and makes their life a little bit better. These small things add up and can improve the overall quality of life in an area considerably over time.
Talent Comes to the U.S.
The EB-5 investor is unlike other types of immigrants to the U.S. The program was approved by Congress in 1990 to encourage foreign capital investment and stimulate the economy. Subsequently, some of the best and the brightest have migrated to the U.S. through the EB-5 investor program. Not only do these immigrants bring their capital, both monetary and intellectual, to the U.S., but as high net worth individuals they spend more and contribute to the tax base. Many investors seek out this EB-5 visa program because they want their children to have the educational opportunities offered by top U.S. colleges and universities. When these young people receive their permanent green cards, they will contribute their talents to the betterment of their new country.