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The Economic Impact of the EB-5 Program

Our last blog discussed the fraud rate of the EB-5 Program and concluded that despite a small number of high profile reports, the EB-5 program has been a net positive to the U.S. economy and local communities around the country.

The EB-5 Program has made contributions to the US economy directly through capital invested by foreign nationals seeking green cards. The program has also made contributions indirectly by serving as a medium for job creation, commercial enterprise development, and the immigration of high net-worth investors, all of which increase tax revenues.

eb5-capital-double-graph

Before 2008 there was not a very strong correlation between EB-5 capital invested and US jobs. However, after the financial crisis, people began searching for alternative financing and EB-5 capital became a solution. Since 2008, EB-5 capital invested and US jobs have a very strong positive correlation that is significant at the 99.9% confidence level, indicating that the EB-5 program may have a noteworthy impact on the US economy.  After the recession in 2008, employment in the US was at a low of 129,774,000 people employed in 2009. After 2009, employment increased as the economy stabilized. Between 2010-2013, the EB-5 Program either created or supported over 116,200 US jobs, which was about 2% of the new job creation in those years and a helpful contribution to the economic recovery.

The breakdown of the EB-5 program’s economic contributions at a glance:

economic-contributuions

To learn more about LCR and LCR’s projects, contact one of our team members in one of our various offices around the world.

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Data from IIUSA, Bureau of Economic Analysis, Bureau of Labor Statistics and the World Bank

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