On July 22, 2009, the U.S. Senate’s Committee on the Judiciary held a hearing on “Promoting Job Creation and Foreign Investment in the United States:
An Assessment of the EB-5 Regional Center Program.
” There was discussion that the EB-5 Regional Center Program has been responsible for the investment of hundreds of millions of dollars. It has also led to the creation of tens of thousands of jobs in the U.S.
Throughout the hearing, senators and witnesses alike cited the temporary nature of this program. It was mentioned as one of its greatest hindrances, affecting potential investments under EB-5.
Additionally, Sen.
Leahy noted that making the program permanent is critical for its continued success. He also pointed out that he had successfully offered an amendment to the Department of Homeland Security (DHS) Appropriation bill.
He hopes to see this make it into the final bill, supporting the EB-5 investment scheme’s permanence. Through this program resulting in the creation of 20,000 jobs, the benefits for those investing in EB-5 are clear.
The law relaxes the job creation requirement of the fifth-preference category by allowing aliens investing,
In new commercial enterprises located within regional centers to establish “reasonable methodologies” for determining the number of jobs created.
In addition, while the revenues generated by the qualifying commercial enterprise must result in exports,
As a result, immigrants participating in the pilot program may credit jobs they create indirectly through contracts or subcontracts with commercial enterprises involved in direct export.
This means they do not have to directly create 10 jobs.
To establish the requisite connection to exports,
Contain a detailed description of the manner in which the center will positively impact the regional or national economy in general. This is reflected by factors such as increased household earnings. Moreover, it includes greater demand for business services, utilities, maintenance and repair, and construction both within and outside the regional center;
By: Brian D. Lerner
Attorney at Law
Certified Immigration and Nationality Specialist
californiaimmigration.us
562-495-0554, providing guidance on EB-5 investment matters.