The EB-5 investor program can help boost a struggling economy

The pandemic wreaked havoc on the U.S. economy that is now in search of recovery. Some see the EB-5 investor program as one of what will be many paths towards that goal. The history of the program reveals a track record of success in creating jobs and facilitating economic development.

The most recent example was the Great Recession of 2008 that saw $20.6 billion in investments and the creation of more than 700,000 jobs.

Much-needed economic stimulation

To qualify for the EB-5 visa program, investors must make a $900,000 to $1.8 million investment that creates ten new American jobs. Currently, a number of countries are competing for these opportunities. In a time of stimulus payments, these promising signs and the potential monetary influx from the initiative could stimulate, if not inject much-needed finances to grow a chaotic economy.

Even a successful program can use some fine-tuning. In the United States Senate, a rare bipartisan pairing of lawmakers introduced a bill to make much-needed improvements to the EB-5 program. The Reform and Integrity Act of 2020 would call for the following:

• Removing the temporary sunset of five years by replacing it with an automatic reauthorization
• Reforming the program through the implementation of third-party audits, improved communication with investors, mandated and highly detailed records that document the source of investor funds, and increased scrutiny to shield against national security threats
• Protecting investors for projects that do not come to fruition, including the recovery of money for future investments

EB-5 programs during these difficult times are receiving a groundswell of support. The benefits are twofold. Economic growth for a country struggling to emerge from shutdowns and other effects of the pandemic while providing more business opportunities that can grow the economy and reduce unemployment.