With the EB-5 Regional Center Program set to expire September 30, 2016, lawmakers have been working feverishly to extend the program with reforms. Reauthorization, along with those reforms, would allow for increased Program integrity and economic opportunities. EB-5 has long proved to be essential to the U.S. economy. Outlined below are several benefits of the Program.
· From 2005-2015, over $15 billion of FDI contributed to the U.S. economy as a direct result of EB-5 investment
· A lapse in the Program would mean$16 billion, or 12% of the total inbound FDI inflow would he prevented from being put to work in the U.S.
· EB-5 creates critical jobs in diverse sectors, such as: Assisted-living, education, construction, manufacturing, health care, and more, at no cost to the taxpayer
If the Program lapses, at least 220,000 local jobs would be immediately wiped out, along with a minimum of $11 billion in community investment. The U.S. economy would take a devastating hit. Furthermore, $7 billion in investment and 140,000 jobs would be destroyed by costly litigation. The long-term effects of this could potentially deter future foreign direct investment into America.
So how has Congress helped to maintain Program integrity in the past? Over the past year, bipartisan bills S. 1501 and S. 2415 have been presented, with measures that "Include background checks for Regional Center owners, banning participation in the Program for anyone who committed certain crimes including drug trafficking and terrorism, and forbidding foreign ownership of a Regional Center. These measures address concerns of fraud that EB-5 could somehow be a vehicle for criminals to legally enter the United States. Overwhelmingly, IIUSA and the industry support improved integrity measures to weed out the fraudsters, cheats and criminals while allowing the rest of the industry to contribute to the American economy through job creation and economic development."
As you can see, the EB-5 Program has become vital to the U.S. Reforms by Congress would help to ensure a stronger and more efficient Program. Allowing it to lapse would be detrimental to the economy and create an immediate loss of billions in investment and hundreds of thousands of jobs. "Congress must mend it, not end it."
This information comes from a recent article from IIUSA. To read the full article, written by IIUSA Executive Director, Peter Joseph, click here.