EB-5 PROGRAM STATS

Posted: February 12, 2014 in Uncategorized

There is no question that the EB-5 program has a significant impact on job creation and funding provided to US developers and businesses.

 

Peer-Reviewed Study Finds Dramatic Increase in Economic Impact of U.S. EB-5 Immigrant Investor Program for 2012

Program Contributed $3.39 billion to U.S. GDP and supported over 42,000 U.S. jobs

February 12, 2014 10:00 AM Eastern Standard Time

CHICAGO–(BUSINESS WIRE)–A new economic impact study commissioned by the Association to Invest in the USA (IIUSA) finds that the U.S. EB-5 immigrant investor visa program contributed $3.39 billion to U.S. GDP and supported over 42,000 U.S. jobs during fiscal year 2012. This is more than a 2-fold increase from the average annual impact result reported in 2011.

“The results of the 2012 assessment unequivocally demonstrate that the EB-5 Program is delivering on its promise of regional economic development and U.S. job creation at no cost to the taxpayer.”

Congress created the EB-5 program in 1990 to benefit the U.S. economy by attracting investments from qualified foreign investors. Under the program, each investor is required to demonstrate that at least 10 new jobs were created or saved as a result of the EB-5 investment, which must be a minimum of $1 million, or $500,000 if the funds are invested in certain high-unemployment or rural areas.

“As the industry trade association for the EB-5 Regional Center Program, IIUSA is committed to accurately measuring the positive impacts of the EB-5 Program in terms of job creation, GDP growth, and tax revenue,” said IIUSA Executive Director Peter Joseph. “The results of the 2012 assessment unequivocally demonstrate that the EB-5 Program is delivering on its promise of regional economic development and U.S. job creation at no cost to the taxpayer.”

The report uses a comprehensive dataset on EB-5 investor applications and EB-5 Regional Center investments along with well-established economic modelling methods to determine overall positive impacts on GDP and job growth as well as federal, state, and local tax revenue from EB-5 investments in U.S. economic development projects, household spending by immigrant investors and other EB-5 related spending. Economic benefits are measured by state and by impacted industry sector.

Key findings of the report include:

  • Total economic impact, combining the benefits of EB-5 investments, household spending of immigrant investors and other EB-5 related spending, was $3.39 billion to U.S. GDP and supported over 42,000 U.S. jobs.
  • Investment represents the largest component of EB-5 spending, with approximately $1.8 billion invested by EB-5 Regional Center investors. These investments contributed $2.5 billion to U.S. GDP and supported 33,134 American jobs.
    • Over 85 percent of EB-5 investment capital – $1.55 billion – was invested in the construction sector. Other sectors seeing EB-5 investments include chemical manufacturing, mining, manufacturing and power generation.
  • Pennsylvania, New York, California and Illinois top the list of states with the largest level of investment, and these saw the largest investment impacts. For example, more than 8,000 jobs were supported in California.
  • Household spending by immigrant investors and their families contributed approximately $383 million to US GDP and supported more than 4,700 jobs in 2012. The economic impact of household spending represents a permanent impact on the U.S. economy, as these families maintain spending patterns year after year.
  • Spending on EB-5 related immigration services contributed approximately $477 million to U.S. GDP and supported nearly 5,000 jobs in 2012. These expenditures include spending on flights, moving services, cars, investment and legal services and government fees.

The study, which was conducted by David Kay of IMPLAN Group, LLC and peer-reviewed by Professors Eric Thompson and Hart Hodges of Association for University Business Economic Research (AUBER), was commissioned by the Association to Invest in the USA (IIUSA), the national trade association representing EB-5 Regional Centers that account for 95 percent of the capital flowing through the EB-5 program.

This is the second comprehensive economic impact report commissioned by IIUSA based on comprehensive data-sets of I-526 and I-829 approval/denial statistics for each Regional Center in the country for fiscal years 2010-2012, obtained through a vigorous process of data collection and subsequent analysis of I-924A filings. A breakdown of the “new commercial enterprises” and “job creating enterprises” that Regional Centers fund throughout the year, along with North American Industry Classification System (NAICS) codes to track industry sector impacts adds further context to the data.

For media access to the full report, contact Liz Poston, lposton@prismpublicaffairs.com.

 

 

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A comprehensive due diligence investigation has been on-going for the past several months on a tequila bottling operation in Guadalajara, Mexico and a future site in Phoenix, Arizona.  MQT, a due diligence firm from Mexicali, has completed their investigation and presented their report at a meeting in San Diego.  Mr. Gonzalez and Bubba will return to China to complete negotiations with Chinese investors who have expressed their intent to invest in tequila manufacturing and bottling operations in Mexico, the US and China.

Empyrean West was busy this past week touring Arizona with several Chinese investors and migration consultants who are considering investment and representation of several Empyrean West EB-5 sponsored projects.

EB-5 Regional Center Economic Development Program Hits Historic High

More capital investment available for job-creating projects than ever before
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CHICAGO, February 1, 2012 – The Association to Invest In the USA (IIUSA), the trade association for the EB-5 Regional Center Investment Pilot Program, today celebrates a new historic high in Program utilization for the first quarter of FY2012.   US Citizenship and Immigration Services recently reported 2,364 EB-5 visas issued in the first three months of the current federal fiscal year.    This equates to at least 10,000 new jobs for American workers.  At this pace, the 2012 Program will come close to using its 10,000 annual visa allocation for the first time since the Program’s inception in 1994.   10,000 EB-5 Visas would mean at least 40,000 new jobs for US workers.

At a time of limited liquidity around the United States, the EB-5 Regional Center Investment Pilot Program is finally coming of age.  Globally integrated marketplaces now facilitate the exchange and migration of capital, resources and people across international borders at an ever-increasing rate.  As a result, the Program is able to account for more foreign direct investment now available for American job creating enterprises than ever before.

“These recent numbers confirm the trends that our industry has been seeing for the last couple of years.” said K. David Andersson, President, IIUSA, “We are a functioning example of 21st century economic development policy that works.  Thanks to the Regional Center Investor Pilot Program, thousands of Americans are employed today, and at no cost to the American taxpayer.  This Program needs to be a permanent part of the American economic development toolbox.”

Despite its record setting statistics and growing economic impact, the EB-5 Regional Center Investment Pilot Program is due to expire in September 2012, absent action from Congress.  IIUSA estimates failure to reauthorize the Program in a timely manner would squander a golden opportunity to create over 100,000 new U.S. jobs through investment losses of at least $10 Billion in foreign direct investment over the next five years.  IIUSA calls on Congress to support our efforts to create new jobs by immediately passing permanent reauthorization of the EB-5 Regional Center Pilot Program.

CLICK HERE to download this press release in PDF format.

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FOR IMMEDIATE RELEASE
WEDNESDAY, FEBRUARY 1, 2012
CONTACT: PETER D. JOSEPH (773-899-0563; peter.joseph@iiusa.org

Bubba Cook of Empyrean West and partners from a migration consulting agency in Beijing and Chicago recently conducted an EB-5 presentation in Beijing featuring the Generations Lifestyles of Globe assisted living project.  The presentation was very successful with 2 investors signing contracts and several more expressing a high level of interest in the project.  The presentation was held on Saturday at a hotel in the Central Business District in Beijing.  A follow-up meeting was help on Sunday with an investor who signed a contract with the migration consultant firm.  Plans are being made for additional presentations in December.  Empyrean West expects to have the project fully subscribed by December 31.

The following pictures show the exterior of the EW office just opened in Beijing.  Also pictured is the shopping center next door to the office that has a McDonalds and Kentucky Fried Chicken!!!!.  The area is a rapidly developing area of Beijing with a new hospital planned for the area next door.  These picture were taken from my hotel room at the 5 star Holiday Inn.  Yes it is a 5 star hotel.