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How does the EB-5 visa program benefit business?
Wealthy investors from Korea, China, England, Mexico and elsewhere have turned to the EB-5 visa program and similar investor visa initiatives with increasing frequency, principally as a means of establishing residency in the U.S.
While these individuals look to the program as a vehicle for a shorter immigration process, some U.S. businesses are left asking about the benefits they receive from joining such an endeavor.
The obvious, overarching benefit is that the EB-5 visa program greatly enhances a company’s access to capital, in a time when lending and investment have been minimized by concern of the health of the economy.
Through the program, foreign investors are asked to contribute at least $500,000, and $1 million in some areas, to a qualifying American business, in order to be considered for an expedited U.S. green card process.
By becoming an EB-5 regional center, companies can gain direct contact with foreign nationals who are considering participating in the immigration project.
For instance, earlier this year, the U.S. Citizenship and Immigration Services (USCIS) certified the real estate firm Twin Development as an official EB-5 regional center.
The firm, directed by manager Steve Smith, had planned to build a 45-story condo tower in Washington state to develop a mid-sized city called Federal Way, said the Seattle Times.
Smith and his partners expect the project to cost about $255 million. But because the company did not have that sum of money at the time, they began searching for innovative means for financing.
Under the EB-5 visa program, Smith and his partners have been in talks with foreign investors who are looking for a quick route to U.S. residency.
Their distinction as an EB-5 regional center essentially makes them an easy target for investment, by publicizing their project and soliciting for funds.
Currently, the managers are pitching the project to Korean investors, as they believe Federal Way’s large Korean-American population may be attractive to the would-be immigrants.
Smith told the news source, “It’s gone very well.”
In just over a year, the number of public and private enterprises recognized by the (USCIS) as EB-5 regional centers has rocketed from around 20 to 83.