As Central New York’s economy continues to grow, government leaders and business developers are learning more about EB-5 capital, which is becoming one of the most sought-after sources of financing for economic-development projects across the nation. The Federal Reserve Bank of New York and CenterState CEO recently hosted an EB-5 forum at the Tech Garden […]
As Central New York’s economy continues to grow, government leaders and business developers are learning more about EB-5 capital, which is becoming one of the most sought-after sources of financing for economic-development projects across the nation.
The Federal Reserve Bank of New York and CenterState CEO recently hosted an EB-5 forum at the Tech Garden in downtown Syracuse.
The EB-5 program (also known as the Immigrant Investor Program) was created by Congress in 1990 to benefit the U.S. economy by attracting investments in job-creating projects from qualified foreign investors. Under the program, each investor is required to demonstrate that at least 10 new jobs were created or saved as a result of the EB-5 investment, which must be a minimum of $1 million, or $500,000 if the funds are invested in certain high-unemployment or rural areas.
Organizations called EB-5 Regional Centers pool capital from multiple foreign investors for investment in economic-development projects within a defined geographic region.
A comprehensive, peer-reviewed economic-impact study published by the Association to Invest in the U.S.A., the national trade association representing more than 200 EB-5 Regional Centers, found that in 2012, investments made through the EB-5 program contributed more than $3.39 billion to U.S. GDP and supported more than 42,000 American jobs.
At the recent forum, Federal Reserve Vice President Rae Rosen told attendees that EB-5 capital could be a catalyst to help revive areas of the U.S. still struggling in the wake of the recession. “We hope this sparks some ideas,” she said.
Indeed, EB-5 capital is being used effectively in other parts of the state. In Buffalo, Kaleida Health turned to EB-5 New York State Regional Center to supply $10 million in capital to help launch its Gates Vascular Institute, which is now in operation. EB-5 New York State also raised capital from foreign investors for the development of MiGo, a multi-modal transportation structure that is serving Buffalo’s burgeoning medical campus, and for the Health Science Charter School’s renovation of its historic downtown Buffalo building.
The city of Syracuse and CenterState are being proactive in bringing the message of EB-5 capital to Syracuse and Central New York, and we were pleased to have Mayor Stephanie Miner at the forum.
These projects demonstrate exactly what Congress intended the EB-5 program to do — create new U.S. jobs and spur economic development. The contributions of foreign investors in the Buffalo Niagara Medical Campus financed projects that were otherwise difficult to fund, and their investments were augmented and compounded by subsequent sources of capital from other public and private partners.
With projects like these already creating jobs and bringing needed industry to upstate New York, we need to keep the momentum going. The best way to do this is by encouraging members of Congress to support the permanent authorization of EB-5 well in advance of its September 2015 “sunset” date. And with continued support from local stakeholders, we can make sure that EB-5 capital will play a vital role in the development of Central New York and Upstate long into future. θ
William Gresser is the president & CEO of EB-5 New York State, LLC, based in Buffalo.