The major disruption brought about by the Coronavirus pandemic has put EB-5 project developers and regional centers on different sides of the fence about continuing to participate in the EB-5 marketplace or wait it out until the storm passes.
With experts predicting a vaccine not becoming available until early 2021 and “herd immunity” a long way off, Coronavirus might be here to stay for a while. Although the recent pandemic has changed many things throughout the world, it has not changed who we are and what we do. We have been involved in the EB-5 industry since 2012, and together with our partners, have placed approximately 720 investors in the EB-5 program through the Florida Equity and Growth Fund Regional Center (“FEGFRC”) and other regional centers. Despite the numerous changes that Coronavirus brings to the world, the only thing that will change for us is our strategy to each of our EB-5 investors.
EB-5 is a Favored Government Program
For our investor families who are already in queue under the EB-5 program or who are considering proceeding with the EB-5 program, the recent good news about EB-5 being exempt from the President’s executive order regarding limited immigration should be received as a vote of confidence in the EB-5 program by the current administration.
The EB-5 program, unlike many other immigrant visas is one that benefits the U.S. economy by creating jobs using foreign direct investment at virtually no cost to the U.S. taxpayer. While there have been unsubstantiated rumors circulating for years about the EB-5 program and its potential to be shuttered or severely restricted by this or previous administrations, its exemption from this executive order in a critical time shows that the Trump administration recognizes the positive impact that the EB-5 program and EB-5 investment can have on the U.S. economy. At its core, the EB-5 program is a win-win-win for all parties involved. The U.S. economy receives a sorely needed injection of foreign capital and verified job creation from the developers and regional centers governing the projects, the developers receive capital to deploy in their projects at discounted rates relative to commercial bank loans, and investors receive a clear way of obtaining a permanent green card and eventual citizenship that may not have been possible via alternative immigrant visa options.
EB-5 Will Continue to Provide Jobs to Distressed Communities Across the Country
In the midst of the ongoing COVID-19 pandemic, EB-5 is needed more than ever. History further presents the EB-5 Visa Program as a benefit to the U.S. economy. When the U.S. hit a recession in 2008, developers could not obtain funding through traditional means, but the EB-5 Program provided a critical capital investment to the U.S., boosting the economy in its time of need.
The U.S. EB-5 program has a history of providing a capital lifeline in economic downturns. And, as more people face sudden unemployment, the EB-5 investor program will continue to provide jobs to distressed communities across the country.
In the wake of the 2008 recession, for example, real estate developers were able to benefit from EB-5 capital and their projects created tens of thousands of jobs. Liquidity had dried up, and despite huge bailouts for banks at the time, they weren’t lending. EB-5 became an alternative and attractive source of capital for developers. The use of EB-5 capital was not limited to urban real estate either. Developers and corporations in several rural and remote markets also used the program to create jobs in their communities.
Unlike other forms of economic stimulus, EB-5 is the only program that creates jobs at no expense to the US taxpayer. Looking back on the jobs created or saved by the financial crisis stimulus, estimates suggest that each job cost U.S. taxpayers between $540,000 and $4.1 million. Therefore, given the magnitude of this crisis, it’s in the country’s best interest to boost EB-5’s momentum – hence its favorable treatment regarding the recent Executive Order that kept EB-5 running.
Refining Our EB-5 Marketing Strategy
Given the win-win-win nature of EB-5, we will continue to develop EB-5 projects and provide pathways for families to pursue their immigration goals. While policies continue to change around the world, the only change for our team will be an adaptation in our strategy that includes Coronavirus and how we can effectively share this information to our potential investors. Through everything we do, from selecting and promoting our projects, to monitoring job creation and immigration needs, we have set up a structure to provide security and stability for our investors. From our corporate office, we have set up our facility to promote our projects, our investments, and our regional center, Florida Equity and Growth Fund Regional Center (“FEGFRC”) to its fullest capacity.
Current and prospective EB-5 investors can remain confident in the EB-5 Investor Program, as it continues to be a viable option for high net worth individuals seeking to obtain a green card quickly, as compared to other visa categories such as the H1-B and L1 visas.
The EB-5 Program offers the following advantages:
- One Investment: Investors, their spouses, and children under 21 years of age can all receive U.S. green cards by funding a single project with a single investment.
- Education: Green card holders may attend U.S. schools and universities at the same cost as U.S. citizens.
- Flexibility: Live, work, and retire anywhere in the U.S., and travel easily to other countries.
- Healthcare: Gain access to the same high-quality healthcare available to U.S. citizens.
- Passive Investment: Third parties manage your investment and all aspects of the project.
- No Language Requirement: Proficiency in English is not necessary to participate in the EB-5 program.
Christian Tyler Properties wishes families in areas impacted by this virus to be safe and healthy during this difficult period. Should EB-5 investors have questions about the impact the coronavirus pandemic may have on the EB-5 visa process or the commercial real estate industry, please feel free to reach out to us at firstname.lastname@example.org.