Tammy Fox-Isicoff: EB-5 immigrant program a
boon to nation's gross domestic product
Lake Point project just one local example of where it's being used
Tammy Fox-Isicoff, Miami, is past president of the South Florida American Immigration Lawyers
Association.
Posted June 13, 2014 at 4 a.m.
Foreign investors are looking to pump millions of dollars into Florida for what has become known as the
Lake Point project near Lake Okeechobee. This aggregate rock mine and restoration effort would further
state compliance with EPA water restoration mandates, provide desperately-needed water
decontamination areas and create public green space. Additionally, it would generate numerous in-state
jobs and culminate with the property owners gifting in phases the land, including the storm water and
wetlands areas, valued at more than $100 million, to the state of Florida.
Yet projects like Lake Point are making great strides in large part due to the little-known EB-5 Immigrant
Investor Program. This job creating initiative allows foreign nationals to obtain lawful permanent
residence in the U.S. upon investing $500,000 in a project in a targeted employment area, so long as
that investment, at least indirectly, results in the creation of 10 or more jobs.
Every day, successful entrepreneurs are looking to invest in the land of opportunity that is the United
States, with companies ranging from restaurants to retail to manufacturing to professional services and
afar beyond. EB-5 fosters this potential by figuratively investing in the investors who want to contribute
their funds to our country and create American jobs.
Since Congress enacted and later refined the EB-5 Pilot Program, it has created more than 100,000
American jobs in Florida and other states strongly affected by the recent recession and struggling with
high unemployment rates. Roughly 33,000 of those employment opportunities came in 2012 alone.
Spending associated with EB-5 investors contributed $2.65 billion to the U.S. GDP and supported more
28,000 U.S. jobs in 2010-2011, contributing $347 million to federal tax revenues and $218 million to
state and local tax revenues.
EB-5’s investment in America was crucial during 2010-2011, as it provided the requisite capital for the
development of projects, during a time when financing from banks was at best difficult to obtain, and at
worst completely unavailable. Today, more projects than ever are financed by EB-5 capital.
During 2010-2011, EB-5 investments also accounted for a substantial portion of the capital used in
commercial developments. It accounted for more than $10 million in the state of Florida, as well as
more than $310 million in California, New York and Pennsylvania, almost $300 million in South Dakota,
more than $80 million in Washington, almost $50 million in Vermont and Wisconsin, and more than $10
million in D.C., Illinois, Kansas, Louisiana, Maryland and Ohio. It also provided substantial capital to a
myriad of other states including Iowa, Alabama, Idaho, Hawaii, Michigan, New Jersey, South Carolina,
Texas and Virginia.
As staggering as they are, these numbers only represent dollar amounts from when the EB-5 program
was being partially utilized. Merely one-third of the 10,000 annual visa limit had been subscribed in
fiscal year 2011, and a little under one- fifth of this number in 2010.
By fiscal year 2014, the 10,000 EB-5 quota may be fully subscribed, and bring with it monumental
benefits for this country. If the entire 10,000 allotted visas are subscribed, EB-5 spending would be
responsible for more than 83,000 U.S. jobs and contribute $6.6 billion to U.S. GDP.
Federal tax revenues would increase to $863 million and state and local tax revenues would swell to
$544 million. These figures do not even include the significant favorable economic impact that results
from wealthy individuals settling and paying taxes in the United States.
However, what is most surprising about EB-5 is that many of our legislators, even those in states such as
Florida which have extensively reaped the rewards of EB-5 investment, know nothing about this
phenomenal program! It has brought incredible benefits to this country at a time when our economy
desperately needed and continues to need this windfall.
In a state like Florida, where nearly 30 percent of business owners are immigrants, the immense value of
EB-5 is self-evident. And as more and more U.S. entrepreneurs, lawmakers and successful foreign
investors take advantage of this wonderful program, it will undoubtedly cultivate the U.S. economy and
display amazing new waves of the innovation and entrepreneurship which American was built upon.