Recently, the President and Chief Executive Officer of the US Chamber of Commerce, Thomas J. Donohue, wrote a compelling Op-Ed for The Hill in support of the EB-5 Program. EB-5 Insights website discussed Mr. Donohue’s article at length in a blog post on September 18th, 2015. See below.
NVEB-5 Administrator, Lynn Beteag agrees with many of Mr. Donohue’s points. In particular, she believes Northern Nevada municipalities should explore the benefits of utilizing the EB-5 Program in attracting capital investment for infrastructure projects such as: roads, bridges, etc. Beteag stated,”In addition to area infrastructure, year round resorts, charter schools and senior care facilities projects are good candidates for participation in the EB-5 program. Projects such as these, seeking supplemental capital, which are located in our service area, should consider the benefits of project participation.”
Projects located in Carson City, Douglas and Lyon counties, as well as the adjacent counties, are encouraged to contact the NVEB-5 for more information about the program.
The op-ed includes recognition that major organizations around the United States have rallied around the EB-5 program, and that have supported and championed its use, including the U.S. Chamber of Commerce and other industry groups. These groups have also recognized that there is a need for reform of the program to prevent fraud and abuse, and as such, should be updated to include provisions for integrity, security, and oversight measures.
Mr. Donohue identifies a current concern surrounding the use of the EB-5 program in certain areas, and he does not believe that Congress should direct EB-5 investment into certain areas of the United States at the expense of other areas, since the program was designed to encompass all the areas in the United States that need job creation. Because job creation is one of the purposes of the program, the way that jobs are counted are important, but should not be unreasonably limited or restricted.
Lastly, Mr. Donohue discusses the current backlog EB-5 petitions are receiving- to date, there are currently more than 13,000 EB-5 petitions pending approval, and if there are any changes to the program, these petitions should not be unfairly affected. By applying any changes to these pending petitions would be to unfairly penalize and disrupt both current and potential projects. Read more.