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EB-5 Immigrant Investor program. An untapped opportunity for Oregon. Presentation outline. Introduction Potential benefits for Oregon Recommended course of action. Introduction. Introduction. The EB-5 Visa Program. Started in 1990
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EB-5 Immigrant Investor program An untapped opportunity for Oregon
Presentation outline • Introduction • Potential benefits for Oregon • Recommended course of action www.aginskyconsulting.com
Introduction www.aginskyconsulting.com
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) www.aginskyconsulting.com
Introduction Interest in immigrant investor programs • Immigration • Political safe haven • Transparent legal system • Education opportunities for children • Lifestyle, environment • “The American Dream” www.aginskyconsulting.com
Introduction EB-5 Statistics www.aginskyconsulting.com
Introduction EB-5 Statistics • Strong interest from both developed and developing markets • ~3000 from East Asia, but the rest are spread throughout the world www.aginskyconsulting.com
Introduction Global competition • 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 www.aginskyconsulting.com
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) www.aginskyconsulting.com
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 www.aginskyconsulting.com
EB-5 Program Benefits for The State of Oregon www.aginskyconsulting.com
Potential benefits for Oregon Immigrant demographics • Wealthy • Well educated • Entrepreneurial www.aginskyconsulting.com
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 www.aginskyconsulting.com
Potential benefits for Oregon New Source of Capital • Recession has tightened capital sources, stifling businesses • Multiplier effect of investment www.aginskyconsulting.com
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 www.aginskyconsulting.com
Recommended course of action www.aginskyconsulting.com
Recommendedcourse 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 www.aginskyconsulting.com
Recommendedcourse 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.) www.aginskyconsulting.com
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 www.aginskyconsulting.com
Recommendedcourse 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 www.aginskyconsulting.com
Forecast • Case study: Seattle regional center • 650 EB-5 investors • Raised $450 million, $325 million from EB-5 • Forecasted to create over 7000 jobs www.aginskyconsulting.com
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