EB-5 in Washington DC
Thursday, July 3, 2014
Posted by: FIABCI-USA HQ
Green Construction - How Rich Foreign Investors are Financing DC's Building Boom - In Exchange for Legal Status in the US
In 2006, only 486 people applied for EB-5 visas nationwide. Two years later, applications were up to 1,257. In between, of course, the economy had collapsed.
The EB-5 visa has been around for more than two decades, but it didn’t fully take off until the recession hit in 2008. “Developers are a relatively risk-averse group,” says Brunner. “The last thing they want to hear about is a new form of financing that’s going to take a lot of work. But then we had the recession.”
With bank loans drying up, developers struggled to find ways to finance their projects. EB-5 offered a steady stream of money from investors willing to bear a low rate of return in exchange for American residency. By 2010, USCIS figures show, 1,955 people applied for EB-5 visas. In fiscal year 2013, there were a record-high 6,343 applications.
Now that the economy is recovering and traditional lending is on the rise, it’s not clear what will happen to EB-5. “I think it’s getting harder, because more and more projects have access to bank financing or traditional financing,” says Morris. Click for full story.