How do cities rebuild after catastrophic hurricanes like Harvey and Irma? Is EB-5 the answer?
Hurricane damaged cities in Texas, Louisiana, Florida, and even Puerto Rico, could benefit from the EB-5 Program.
When large projects need to raise a significant amount of funding, and traditional methods of raising funding are not available, EB-5 offers a valuable alternative option to raising much needed capital.
The EB-5 Immigrant Investor Program offers foreign investors the opportunity to invest in job-creating projects in exchange for U.S. green cards. Each year, 10,000 visas are available for qualified foreign investors. Some of the largest projects in the United States are funded in part by EB-5 investment. These projects include Hudson Yards in New York and Paramount Miami Worldcenter in Miami.
All kinds of projects can qualify for the EB-5 Program. A few of the most popular types include developments in condominiums and multi-family, hotels and resorts, energy, mixed use and office, manufacturing, restaurants, education, medical and healthcare.
Large cities already attract EB-5 investors who are looking for projects in targeted employment areas (TEA) for a lower investment requirement of $500,000. What are targeted employment areas? Either these are areas with high unemployment rates or they are rural locations. Given the choice, investors usually choose to invest in projects located in large cities because they are viewed as viewed as less risky than truly rural locations. Some reasons may include more compelling job creation methodologies, a stronger local economy, and faster construction completion.
Therefore, it's likely that if desired, these cities, such as Houston, could raise EB-5 funding to help with the rebuilding of large projects throughout the city.