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EB-5 Immigrant Investor program

VIEWS: 20 PAGES: 23

									EB-5 Immigrant Investor program
An untapped opportunity for Oregon
Presentation outline
Introduction
        benefits for Oregon
Potential
Recommended course of action




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            Introduction


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                                                Introduction

The EB-5 Visa Program
 Started in 1990
 Makes immigrant visas (green cards) available to
  foreigners who:
    Invest at least $1 million or $500,000 into a
     targeted employment area (TEA)
    Create at least 10 jobs
 Investors can invest directly into a company or into
  a Regional Center (RC)


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                                                  Introduction

Interest in immigrant investor programs
   Immigration
        Politicalsafe haven
        Transparent legal system
        Education opportunities for children
        Lifestyle, environment
        “The American Dream”



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                                                           Introduction

EB-5 Statistics
            Year     Number of            Growth from
                   Investor Visas         previous year
            2006        744                          -
            2007        806                        8.5%
            2008       1360                        68.8%
            2009       4218                        310%




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                                                               Introduction

EB-5 Statistics
Top Ten Countries of   Total EB-5 investors
Origin                 in FY 2009                       Strong interest
                                                         from both
1. China               1979
                                                         developed and
2. South Korea         903                               developing markets
3. Great Britain       326                              ~3000 from East
4. Canada              85                                Asia, but the rest
5. Japan               84                                are spread
6. India               72                                throughout the
                                                         world
7. Russia              60
8. Netherlands         38
9. Mexico              33
10. South Africa       31
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                                                                               Introduction

Global competition
 Qualification     USA           Canada                   UK             Bulgaria (EU)
 Requirements

 Investment Size   USD 1         CDN 800,000              £ 1 million    € 512,000
                   million.      With finance             With finance   With finance
                                 options                  options        options




   Thousands of wealthy individuals looking for a peaceful, safe,
    and stable place to settle
   Globally competitive, immigrant investors have multiple
    options
   The U.S. has the only program that requires investor capital to
    be put at risk
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                                                      Introduction

    National competition
   Over 100 EB-5
    regional centers
   No regional centers
    in Oregon
   Strong interest in
    internationally
    known locations
    (New York, Miami,
    Los Angeles)




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                                             Introduction

Case study: Vermont
 The only state-run Regional Center
 Operated by Vermont Agency of Commerce and
  Community Development
 Current projects:
    Jay Peak ski resort
    Seldon Clean Water Products
 200 investors
 Created over 2000 jobs
 Invested over $100 million
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      EB-5 Program Benefits for
        The State of Oregon


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                                          Potential benefits for Oregon

Immigrant demographics
Wealthy
Well educated
Entrepreneurial




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                                           Potential benefits for Oregon

Job creation
Each  investor must create at least 10
 jobs, but usually create more
Tend to create jobs in areas that need
 them most




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                                           Potential benefits for Oregon

New Source of Capital
Recession  has tightened capital sources,
 stifling businesses
Multiplier effect of investment




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                                          Potential benefits for Oregon

Global exposure
Investors will link Oregon companies
 with their home countries
Expose Oregonian products to a wider
 global audience
Increasing global awareness of Oregon
 will stimulate tourism


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Recommended course of action




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                                                Recommended course of action

Designate TEAs
 A TEA has 150% national unemployment rate or is a
  rural area
 An RC in a TEA requires only $500,000 investment
 By working with economists, the state can designate
  TEAs
 Designated TEAs will help Oregon companies know
  where to establish Regional Centers




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                                                Recommended course of action

Financial support
Startup     costs are high:
     • Registration fees
     • Legal costs
     • Economic impact studies
     • Marketing (int’l offices, agent commissions,
       global seminars, online campaign)
Provide    financial support (grants, low-
   interest loans, etc.)
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                                                Recommended course of action

Co-investment into projects
 Foreign investors prefer projects
  with government support
 Opportunity to promote targeted
  industries (such as
  environmentally sustainable
  projects)
 Tax breaks to initiate
  investment



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                                                Recommended course of action

Non-monetary support
 The recognition and support of
  government officials is important to
  international investors
 Participate in international marketing
    Governors of Vermont and Idaho
     recently toured Asia to promote the
     EB-5 program




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                     SUMMARY
         BENEFITS                RECOMMENDATIONS

Bringing active, educated, and
                                 Designate TEAs
entrepreneurial people

Creating many new jobs           Provide financial support
Providing a new source of
                                 Co-invest into projects
capital
Giving more global exposure to
                                 Non-monetary support
the State
                   Forecast
Case       study: Seattle regional center
     650 EB-5 investors
     Raised $450 million, $325 million from EB-5
     Forecasted to create over 7000 jobs




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For more details, please contact us directly.

            Thank you
       AGINSKY CONSULTING GROUP, LLC.
        WEB: www.aginskyconsulting.com
       EMAIL: info@aginskyconsulting.com
               TEL: 877-WITH-ACG

								
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