Economic Analysis for EB-5: The Discovery It Has Made

We will talk about the EB-5 program's two most evident economic advantages—foreign investment and job creation—in this blog post. These two factors were the program's inspiration for its inception. We base our study on the economic analysis for EB-5 from other credible institutions and research companies. In our following essay, we'll go over some unexpected economic advantages that the EB-5 program has brought about, notably over the past seven years, during which its utilization has surged.

Economic Benefit #1: The EB-5 Program has contributed billions of dollars to the American economy

According to the economic study of the EB5-IC report, the EB-5 program contributed at least $5.2 billion in private investment to the American economy between 2005 and 2013. The program attracted at least $1.6 billion in private investment in 2013 alone. These projections may be understated in comparison to findings of a 2012 peer-reviewed study commissioned by the Association to Invest in the USA (IIUSA), the national trade group for EB-5 Regional Centers, which found that the EB-5 Program increased GDP by $3.39 billion in the United States during the previous fiscal year. The bigger estimate provided by IIUSA takes into account not only EB investment capital but also household expenses incurred by immigrant investors and other EB-5-related expenses. Additionally, according to the IIUSA research, EB-5 investor spending generated approximately $447 million in federal taxable income and $265 million in state and local tax revenue in 2012. The key conclusion from both of these analyses is that the EB-5 program probably raises the GDP of the United States by at least a few billion dollars per fiscal year.

Economic Benefit #2: Tens of thousands of employment for Americans have been generated thanks to the EB-5 program across the nation.

The economic analysis for EB-5 has demonstrated consistent and growing annual yields of domestic investment and US job creation since 2008 when the program's popularity increased amid the recession. The Regional Center Program, which streamlines the investment procedure for applicants and has job creation standards that may be simpler to achieve, has been the main driver of expansion for the EB-5 program. According to the EB-5IC report, investments made through the EB-5 program in 2013 should generate 31,000 jobs if all minimal conditions are satisfied for each investment.

The American Recovery and Reinvestment Act of 2009, sometimes known as the "stimulus" package, was shown to be 500 percent less effective in creating jobs than the EB-5 program, according to the analysis. The EB-5 program has generated tens of thousands of employment at no cost to American taxpayers, in contrast to the stimulus bill, which produced one job for every $100,000 to $400,000 in public spending.

It is important to note that the "31,000 jobs" number is based on a careful analysis that only accounted for ten jobs per investor when many EB-5 investments generate more jobs. At the very least, several other economic evaluations by reputable analysts and research firms have generated considerably higher employment and investment statistics.

The Bottom Line!

Foreign investors wishing to apply for an EB-5 visa should continue to submit their papers on time to prevent unnecessary delays. At the same time, the EB-5 industry waits impatiently to see what shape the reauthorized Program will take. Get expert advice or services from Barnhart economic consulting services to thrive.