How COVID-19 has Affected
While direct EB-5 investors have taken the brunt of the economic
effects of the pandemic, many EB-5 regional centers have been
impacted hard when it comes to new sales of projects.
By Fredrick W. Voigtmann
he catastrophic toll of the COVID-19 pandemic in terms of
loss of life, economic devastation, societal disturbance,
and chaos on a personal, familial, national, and international
scale cannot be understated and likely will never be fully
measured. The pandemic’s long-term effects on EB-5
regional center projects and direct EB-5 projects are similarly
difficult to appreciate and measure on a comprehensive level.
There are a few areas, however, in which EB-5 cases clearly
have been affected, at least in the short term.
At its heart, the EB-5 Immigrant Investor Law is an investment
and job creation program. The U.S. government has a
significant interest, in good and bad economic times, to
EB5 INVESTORS MAGAZINE
promote foreign investment in the United States and to foster
job growth for qualifying U.S. workers, particularly in areas
with high unemployment. EB-5 is a perfect “quid pro quo” in
that the foreign investor receives significant U.S. immigration
benefits in exchange for making an at-risk investment and
creating 10 full-time positions for U.S. workers.
Who are these EB -5 investors? They are essentially
businessmen and women, entrepreneurs, high net worth
individuals, and drivers of economic activity 1 . Therefore, since
the pandemic created havoc for large and small businesses
worldwide, not just in the United States, it stands to reason
that the pandemic had similar effects on EB-5 investors’