If we also consider the spending associated with moving
to the United States these impacts are greatly increased.
Barnhart and Barnhart (2015) of Barnhart Economic
Services in a past EB-5 Investors Magazine publication
document other immigrant investor expenditures related
to moving to, and living in the United States. Expenses
in 2010 dollars are recorded as automobiles ($31,307.22),
moving ($8,840.78), travel ($2,343.72), fees related to
airports ($7), investments ($22,701), attorneys ($48,664),
and government immigration fees ($10,806). Using these
expenditures in a 2015 IMPLAN model reveals support of
more than 22,000 U.S. jobs with a total contribution of
more than $5 billion to the U.S. economy.
The implications of this article are not intended to
discuss the issue of visa backlog. The individuals awaiting
adjudication will be adjudicated as deemed appropriate.
However, the number of individuals awaiting adjudication
illustrates the dramatic impact that this program has on the
U.S. economy.
CONCLUSION
The EB-5 program has a minimum standard that each EB-5
participant family must create at least ten new American jobs
through their investment into a new commercial enterprise.
The implications of this article show that each immigrant family also creates about three jobs from relocating to the United
States. This implies that with 17,367 immigrant-investors
awaiting adjudication, 59,000 American jobs will be supported
with $9 billion injected into the economy considering only
their household spending and not their EB-5 investments or
entrepreneurial endeavors. This number is representative of the
both the initial expenses associated with moving to and settling in the United States and the costs household expenditures
associated to living in the United States.
★
Table A: Yearly Household Spending Impacts
ACTIVITY
Household Expenditures
Net Income
STATE AND
FEDERAL TAXES
IMPACT TYPE
EMPLOYMENT
CONTRIBUTION
TO GDP
Direct Effect
0.8
$108,229
Indirect Effect
0.3
$53,025
Induced Effect
0.4
$65,784
Total Effect
1.5
$227,037
$47,122
IMPACT TYPE
EMPLOYMENT
CONTRIBUTION
TO GDP
STATE AND
FEDERAL TAXES
Direct Effect
0.41
$124,263
Indirect Effect
0.44
$87,005
Induced Effect
0.5
$79,652
Total Effect
1.35
$290,920
Table B: Moving to USA Expenditure Impacts
ACTIVITY
Moving Expenditures
$25,501
METHODOLOGY: IMPLAN results were constructed from IMPLAN 2015 national data set. Resulting tables are shown above.
Bureau of Labor Statistics. (1998). Spending patterns of high-income
households. Issues in Labor Statistics (Summary 98-10). Washington, DC:
Author.
Barnhart and Barnhart (2015) The Economic Impact of Individual Immigrant
Investors in the EB-5 Program: A Case Study. Published on August 20, 2015
http://www.eb5investors.com/magazine/article/economic-impact-of-individual-immigrant-investors-in-eb5-program
(CLAS 2013) Center for Latin American Studies UC Berkeley “The economic
benefits of immigration” http://clas.berkeley.edu/research/immigrationeconomic-benefits-immigration
WWW.EB5INVESTORS.COM
Boris Rubbani is an Associate Economist with
CMB Regional Centers which is one of the biggest Regional Centers in the US today. He is an
expert in EB-5 project feasibility and economic
analysis as well as TEA verification of hundreds
of potential EB-5 projects. Boris has a Master in
Economics from Vanderbilt University. He can
be reached at brubbani@cmbeb5visa.com.
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