California regional center gets 10 Chinese investors
Coming from one of the strongest nations in the world in terms of economics, Chinese investors are uniquely positioned to provide U.S. businesses with much needed capital as America emerges from the recent recession. That is why many EB-5 regional centers have looked to China to find participants in the EB-5 visa program.
One EB-5 regional center, the Victorville Regional Center, which operates in Southern California, recently secured $5 million in investments from 10 Chinese investors to help the center fund its upcoming projects, according to the Sun.
The EB-5 visa program allows foreign nationals to become eligible for U.S. green cards if they invest $1 million in an American business and that investment leads to the creation or preservation of 10 new jobs. EB-5 regional centers were created to help direct and manage investors’ money. Some regional centers, like Victorville Regional Center, are in Targeted Employment Areas (TEAs), which are distinguished by having an unemployment rate that is higher than the national average. Only a $500,000 investment is required in TEAs.
The Victorville Regional Center is currently undertaking a project with the Inland Development Group, building a wastewater treatment facility to serve a Dr. Pepper and Snapple bottling plant and also a Plastipak plastics packaging facility.
The 10 new investors give the EB-5 regional center 21 in total, providing them with $10.5 million in capital. Victorville Regional Center is hoping to raise $25 million by the end of the year.
“It’s one of the most successful programs in the country,” William Buck Johns, president of Inland Development Group, told the news source.
Johns further explained that it has taken a little while to find investors because the investment is a big commitment.
“There’s a lot of education that goes into it. People have to do their due diligence,” he said. “These are people investing a lot of their money.”
The regional center is currently drawing up contracts for 32 additional investors in the program, which would give it at least another $16 million in capital.
“The program has gained traction and we are seeing more and more investments being made in the Victorville Regional Center because of word of mouth from other satisfied investors,” said attorney David Hirson, who is involved in the project.
The city of Victorville is excited that it has found a way to fund these projects during the difficult economic times.
“This program is the only program available that will allow us to secure funds to keep job-creating efforts going,” Victorville city councilman Terry Caldwell told the news source.