Two U.S. senators introduced legislation this week to end the EB-5 Program. Will it work?
No. The EB-5 Program will withstand this new legislation and here's why:
- The EB-5 Program gives companies the investment funds they need to develop big projects that otherwise would not be funded in the traditional sense. Banks and lenders continue to be hesitant to offer construction loans to create large projects. The EB-5 Immigrant Investor Program provides developers an alternative method for raising capital.
- This program has stimulated growth in the U.S. economy. It has created thousands of jobs for qualified U.S. workers, poured billions of dollars of investment capital into U.S. businesses, helped troubled U.S. businesses, and developed U.S. projects in targeted employment areas since its inception in 1990.
- The private sector isn't the only one to benefit from the EB-5 Program. The public sector has taken advantage of the program. Many U.S. cities have created their own regional centers in order to attract EB-5 investments for their projects.
- The EB-5 Program isn't perfect and many professionals in the EB-5 industry acknowledge that, but instead of ending the program, many believe it simply needs improvement.
- This isn't the first time U.S. senators have introduced legislation to end the program. Senator Charles Grassley along with Senator Patrick Leahy tried to get rid of the program in the past with no success.