How EB-5 Benefits the U.S. Economy

Amid the immigration concerns that have recently befallen the United States, many people look to immigration programs, such as EB-5, as potentially resting on the chopping block. While this topic is tough to see past without considerable speculation, it seems unlikely that the EB-5 program will be at risk, as the benefits to the United States economy, taxpayers, and working class are immediately evident when taking a look under the hood.

The Incredible Benefits of a Great Idea

In the 1990s, the EB-5 program saw its inception, but the years that followed saw a program that struggled to get off the ground. Well, those days are long behind us now, as the EB-5 program is now ramping up incredibly quickly, providing numerous lucrative benefits to US citizens and the successful foreign nationals that look to join them. One thing is for sure, however, which is that the EB-5 program was a great idea that has benefited Americans is a variety of ways.

Direct Investment

In order to qualify for the program, EB-5 investors have to inject 500,000 dollars of their own money into a business in the United States, which means that 500,000 dollars that was not in our economy is added. This direct investment comes at no cost the American taxpayer, which means it basically has an infinite return on investment (since the taxpayers’ investment is 0). While 500,000 dollars sounds like a lot of money, when the sheer number of successful EB-5 investors is considered, the direct investment sum alone jumps into the billions. Best of all, the direct investment of 500,000 dollars is only the tip of the iceberg for many EB-5 investors, as the true impact of that economic increase is tough to actually calculate, since the actual impact of that initial investment gets re-invested many times by the jobs created and the resulting circulation of funds in the local and national economy.

Job Creation

In addition to the direct investment minimum, EB-5 applicants are required to create 10 unique jobs to continue through the process. While a one-time investment of 500,000 dollars may seem impactful, the true benefit of an EB-5 company is best measured by its ability to create sustainable jobs for Americans. By a rough calculation, EB-5 has created tens to hundreds of thousands of unique jobs, especially when considering the cascading effect that occurs in towns and counties near EB-5 companies. Job creation is, after all, the best way to infuse money into an economy; for each job that is created, a portion of many more jobs in the local area is supported and created. This means that the relatively low sum of 500,000 dollars injected into the economy in the form of direct job creation actually has an exponentially larger financial impact on the local and national economy.

A Pointed Metaphor

To understand the significance of the benefits that EB-5 investors bring to the American people, let’s imagine for a moment that the EB-5 investor is a professional athlete, instead of a financial backer or entrepreneur. Now, imagine that this athlete was highly successful on their own team, but decided that they wanted to play for Team USA. Traditionally, the athlete and Team USA would have to sit down and reach an agreement that was mutually beneficial, costing both sides something in compromise, while also appeasing the athlete’s original team; this form of player trading is incredibly common in professional sports, and something that we’re all used to. Now, under the EB-5 program, instead of the player coming to earn a salary from Team USA, the player instead pays a salary to the team and also lends their considerable skills to the team. Once the contract is completed, the player is an official member of the team, and continues to contribute their skills for years to come. Additionally, if that weren’t enough, their children are also born here and may even join the team later on, further enriching the already incredible deal for Team USA.

EB-5 investors benefit the American people in a similar way; without any investment from the taxpayers, EB-5 investors bring successful businesses to the country, creating jobs with their own capital, then ensure that the businesses succeed for years in the hopes that they can come to this country and continue to create and invest in businesses as a resident or citizen. Imagine if one of the most prized athletes in the world wanted to come and play for your favorite team for free, then decided to stay and coach the team for the rest of their life, and the impact that EB-5 investors has on the US economy can be somewhat realized. To the US taxpayer, there is quite literally no better deal than that offered by EB-5 investors in terms of economic stimulation.

Join Our EB-5 Immigrant Investor Program

The skilled investment professionals at American Venture Solutions are well aware of the tremendous benefits available to investors and taxpayers alike, which is why we’re proud to participate in the EB-5 program. Our numerous investment projects each allow investors the security that comes from sound management and experienced business insight, both of which help to ensure a successful enterprise will be created from your direct investment. Above all, we are excited for the opportunity to help skilled investors bring valuable jobs to American soil.

Tags: EB 5 Direct Investment, EB 5 Immigrant Investor Program, EB 5 Investor Program