Economic Impact of U.S. EB-5 Immigrant Investor Program
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.
- 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.
o 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.
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. EB-5 Regional Centers are eligible to accept and pool EB-5 capital for investments in economic development projects within a defined geographic region. EB-5 Regional Centers fill a critical need for new funding sources in the aftermath of the 2008 financial crisis, leverage additional capital to enhance the economic impact of EB-5 investments and help local governments and businesses integrate EB-5 investments into their overall economic development strategies.
“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,” says Peter Joseph, executive director, IIUSA. “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.
The full report is available upon request.
Illustration by jscreationzs at Free Digital Photos.net