Economic Recovery and the EB-5 program

America’s Current Situation

2020 was without a doubt the worst year for the American economy since the financial crisis of 2008. As the covid-19 pandemic began, cities across the country shut down and a veritable economic havoc ensued. While some businesses were easily able to transition to remote work, it was simply infeasible for others to operate during a lockdown. Thousands of businesses were forced to close, closures which for many have become permanent. Predictably, a surge in unemployment followed,  rising to 14.8% last spring, and although it has steadily fallen, unemployment today remains above 6%, compared to the 3.5% it was at pre-pandemic. Today, with vaccines being distributed and lockdown restrictions easing, people have begun to try and return to normalcy.

However, recovering from covid’s economic fallout will not be an easy task, and it will require billions, if not trillions in federal aid and funding. Now more than ever, American leadership must acknowledge the benefits of the EB-5 program, and endeavor to utilize the program to its fullest potential.  

Why the EB-5 Program?

Regardless of your feelings on immigration, it is hard to ignore what an enormous return on investment the EB-5 program represents. Investors are required to make a minimum investment of at least $900,000 (if they invest in a rural or high unemployment area) and create 10 American jobs. By designating a small fraction of the visas it issues each year for the EB-5 program America has been rewarded with billions of dollars in investment and the creation of thousands of American jobs. This directly benefits the American taxpayer and costs them nothing. 

Meanwhile, despite the Trillions it is prepared to spend for covid relief, congress has put the EB-5 program at risk of permanent closure. In a time where America needs cash to fund its economic recovery the EB-5 program should be even more appealing to American leadership. In fact, it would not be the first time the EB-5 program has helped America recover from economic downturn. As pointed out by US lawmakers last year, “Between 2008 and 2015, as the nation struggled with its last economic downturn, the EB-5 Regional Center program was directly responsible for $20.6B in economic investments and creating or saving 731,792 jobs.” Foreign investors flocked to the program and the US reaped the rewards. 

The EB-5 program has a proven track record of creating economic growth, and it would be foolish and short sighted for lawmakers to allow the program to expire. America needs to ensure that it recovers from the covid-19 economic downturn, and the EB-5 program can help guarantee that happens.