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Alternatively, other countries will aggressively pursue these investors, whose first choice would be to invest in the United States. For example, recently, several countries in the European Union are actively pursuing immigrant investors and facilitating visas within a few months. That’ s a very attractive alternative to our current 18-month adjudication timeframe and the understandable concern of most potential investors is that, even after this 18-month wait, their petition may be denied, which would require them to start the immigration process to the United States or another country all over again.
“ And it’ s extraordinary, the opportunity, the know-how and intellectual capital these people bring when they come to our country.”
Independent of the job creation benefits associated with their requisite investment, it is important to recognize that in most instances these investors are incredibly successful entrepreneurs and business people. They are often the best of the best. And it’ s extraordinary, the opportunity, the know-how and intellectual capital these people bring when they come to our country. If you look at Canada and observe all the direct and indirect benefits it has realized from its immigrant investor program, it’ s astonishing. For a program to bring these kinds of people here, never mind their EB-5 investment dollars, the richness and potential business opportunities they bring as accomplished individuals, skilled professionals from different cultures and backgrounds, ever ambitious, entrepreneurial, determined— that’ s incalculable.
Staff: It’ s the human capital as well, right?
Rosenfeld: What’ s the statistic? One out of every four jobs in this country was developed by an immigrant. The idea that people want to come here and live here is such a great asset for the country, that, forget their $ 500,000 investment – that’ s miniscule compared to the benefits that this country will realize by their presence here – creating businesses, creating jobs. That always gets overlooked. It is a gift to this country. When you consider that immigrant investors currently only represent 1.3 percent of the annual number of immigrants to the United States, I really do not understand why it is not in the national interest to increase the available number of EB-5 visas. It’ s such a relatively nominal number of people. I only wish there was a mechanism of determining how much business and how many jobs these people created after they immigrate to this country.
Staff: What advice would you give a new developer who wants to use EB-5 to raise capital?
Rosenfeld: It’ s a cliché, but do your homework and don’ t believe everything you hear. If a developer believes that he can pursue this on his own, I think he should, but, only with the understanding that this is not an easy business. We have been involved with immigrant investor programs for more than 25 years. We know we’ re in the immigration business, not the development business, and we focus all our time and attention on its complexities. The EB-5 program can be exceptionally rewarding if properly implemented and a very expensive financial and emotional debacle if not. And, quite frankly, my concern is that many immigration attorneys are out there promoting the idea that the EB-5 program is easy and that they can service all your EB-5 needs from regional center submission to securities counsel to even marketing— one stop shopping. That is replete with potential problems. Developers need to understand that EB-5 is a potential minefield that needs to be navigated very carefully. They should talk to more than a couple of people and get different perspectives and read up on the program to make sure it makes sense for them to go at it alone, or through a reputable regional center, or maybe it does not make any sense. Applying a common sense critical mindset is crucial. If pursued wisely and carefully it can be an exceptional source of financing.
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