HomeEB5 Investment Green CardImmigrant Investor Pilot Program
Immigrant Investor Pilot Program
An Opportunity for US and Immigrant Investors
In 1993, Congress created a temporary pilot program aimed at stimulating economic activity and creating jobs for US workers, while simultaneously affording foreign nationals the opportunity to become lawful permanent residents. Through this program, foreign investors are encouraged to invest funds in an economic unit known as a Regional Center. Presently the pilot program sets aside 3,000 visas each year for foreign nationals who invest in "designated regional centers." Congress has renewed the pilot program several times, most recently through September 2009.Regional Center Designation
"Regional Centers" are entities designed to use immigrant investor capital to promote economic growth in a particular geographic area. Any entity, government or private organization may apply for Regional Center designation by submitting a written proposal addressing each of the requirements for Regional Center designation.The pilot program differs from the regular investor visa program in several ways. Investors in Regional Centers are not required to provide proof the immigrant's investment itself will generate employment for 10 US workers. Rather, the investor may show that his or her investment will directly or indirectly create 10 or more jobs through investments made by the regional center. It also affords the immigrant investor more flexibility as it does not require day-to-day management of the investment. It is enough that the investor plays some policy planning role.
Regional centers are defined as "any economic unit, public or private, which is involved with the promotion of economic growth, including increased export sales, improved regional productivity, job creation, and increased domestic capital investment." The statute initially required investment in a Regional Center to generate an increase in export sales, but amendments in 2000 and 2002 eliminated this requirement.
Those seeking approval of a USCIS regional center must submit a proposal showing how their program will:
(1) Focus on a specific geographical region within the United States
(2) Promote economic growth through increased export sales, if applicable
(3) Improve regional productivity
(4) Create a minimum of 10 direct or indirect jobs per investor
(5) Increase domestic capital investment
(6) Be promoted and publicized to prospective investors
(7) Generate a greater demand for business services, utilities maintenance and repair, and construction jobs both in and around the center
The proposal must be supported by economically or statistically valid forecasting tools, including, but not limited to feasibility studies, analyses of foreign and domestic markets for the goods or services to be exported, and/or multiplier tables.
The requirements for an investor under the Pilot Program are essentially the same as in the basic investor program except that the Pilot Program allows for a showing of indirect as opposed to direct creation of 10 jobs for US workers. In the regular investor case the immigrant investor may only claim credit for workers the new commercial enterprise hires as employees. Investors in the pilot program may take advantage of increased employment at the commercial enterprise, at other enterprises - suppliers, for example - and in the economy in general to the extent that the increase was due to increased earnings and spending fueled by the new investment in the regional center. The indirect employment impacts are calculated according to multiplier tables and other statistical methodologies.
Required Amount of Investment
To qualify under the Pilot Program, an investment of the requisite amount must be made in a new commercial enterprise located within an approved Regional Center. Depending on the location of the commercial enterprise to be invested in, the required amount of the investment may be either $1 million or $500,000. If the investment is located within a Targeted Employment Area (TEA) or a Rural Area (RA), the required minimum threshold for investment is $500,000
Targeted Employment Areas (TEA) and Rural Areas (RA)
A TEA is a geographic area or political subdivision located within a metropolitan statistical area or within a city or town with a population in excess of 20,000 with an unemployment level at least 150% of the national unemployment rate. TEAs within a state are designated by the governor. Typically a Regional Center seeks to encompass one or more TEAs.
An RA is a geographical area that is outside a metropolitan statistical area, or part of the outer boundary of any city or town having a population of 20,000 or less as shown by population indicators. In certain areas involving a sparsely populated state, an approved statewide Regional Center likely encompasses both TEAs and Ras.
Conclusion
The USCIS seems eager for its pilot program to stimulate economic growth in the US economy. It has made a concerted effort in the past few years to facilitate and streamline the application procedures. In January 2005 it created a unit at USCIS Headquarters - the Investor and Regional Center Unit - to be the sole adjudicative authority over Regional Center applications, to monitor the actions of approved Regional Centers and to generally oversee all other aspects of the regular investor and the regional center pilot programs.
Despite the current stalemate in Washington over this country's immigration policy the Pilot Program, with its focus on helping the US private sector use capital provided by intending immigrants to create sustainable businesses and jobs for American workers, may be the one program that those on all sides of the issue can embrace. It appears to present an excellent opportunity for the government, the US private sector and intending immigrants.
(2) Promote economic growth through increased export sales, if applicable
(3) Improve regional productivity
(4) Create a minimum of 10 direct or indirect jobs per investor
(5) Increase domestic capital investment
(6) Be promoted and publicized to prospective investors
(7) Generate a greater demand for business services, utilities maintenance and repair, and construction jobs both in and around the center
The proposal must be supported by economically or statistically valid forecasting tools, including, but not limited to feasibility studies, analyses of foreign and domestic markets for the goods or services to be exported, and/or multiplier tables.
Advantages over the Regular Investor Visa Program
Indirect Job CreationThe requirements for an investor under the Pilot Program are essentially the same as in the basic investor program except that the Pilot Program allows for a showing of indirect as opposed to direct creation of 10 jobs for US workers. In the regular investor case the immigrant investor may only claim credit for workers the new commercial enterprise hires as employees. Investors in the pilot program may take advantage of increased employment at the commercial enterprise, at other enterprises - suppliers, for example - and in the economy in general to the extent that the increase was due to increased earnings and spending fueled by the new investment in the regional center. The indirect employment impacts are calculated according to multiplier tables and other statistical methodologies.
Required Amount of Investment
To qualify under the Pilot Program, an investment of the requisite amount must be made in a new commercial enterprise located within an approved Regional Center. Depending on the location of the commercial enterprise to be invested in, the required amount of the investment may be either $1 million or $500,000. If the investment is located within a Targeted Employment Area (TEA) or a Rural Area (RA), the required minimum threshold for investment is $500,000
Targeted Employment Areas (TEA) and Rural Areas (RA)
A TEA is a geographic area or political subdivision located within a metropolitan statistical area or within a city or town with a population in excess of 20,000 with an unemployment level at least 150% of the national unemployment rate. TEAs within a state are designated by the governor. Typically a Regional Center seeks to encompass one or more TEAs.
An RA is a geographical area that is outside a metropolitan statistical area, or part of the outer boundary of any city or town having a population of 20,000 or less as shown by population indicators. In certain areas involving a sparsely populated state, an approved statewide Regional Center likely encompasses both TEAs and Ras.
Conclusion
The USCIS seems eager for its pilot program to stimulate economic growth in the US economy. It has made a concerted effort in the past few years to facilitate and streamline the application procedures. In January 2005 it created a unit at USCIS Headquarters - the Investor and Regional Center Unit - to be the sole adjudicative authority over Regional Center applications, to monitor the actions of approved Regional Centers and to generally oversee all other aspects of the regular investor and the regional center pilot programs.
Despite the current stalemate in Washington over this country's immigration policy the Pilot Program, with its focus on helping the US private sector use capital provided by intending immigrants to create sustainable businesses and jobs for American workers, may be the one program that those on all sides of the issue can embrace. It appears to present an excellent opportunity for the government, the US private sector and intending immigrants.