Date: 2008-06-09
Speaker: ZOE LOFGREN (democrat)
Chamber: H
State: California

Mr. Speaker. I yield myself such time as I may consume. Today. we move to extend an immigration program proven to promote investment and to create jobs for American workers. H.R. 5569 would extend the EB5 regional center pilot program for 5 years. Unless Congress acts. the regional center pilot program will sunset on September 30 of this year. Congress created the fifth employmentbased preference. known as EB5. immigrant visa category in 1990 for immigrant investors. To qualify for a green card. the investor must prove that the investment is in a commercial enterprise that will benefit the United States economy and create at least 10 fulltime jobs. In general. investors must invest at least $1 million. However. that amount can be reduced to $500.000 if the investment is made in a rural or high unemployment area. Approximately 10.000 visas have been made available in the EB5 green card category each year. But the category has been underutilized ever since it came into being. To help further encourage this program. Congress created a temporary pilot program in 1993. The regional center pilot program allocates 3.000 visas each year. out of the 10.000 available. for EB5 investors who invest in socalled designated regional centers. Under the immigrant investor pilot program. an applicant seeking EB5 status must make the qualifying investment within an approved regional center. The requirement to create at least 10 new jobs. however. can be met by showing that. as a result of the new enterprise. such jobs will be created either directly or indirectly. The regional center program is vital for our economy. For example. in fiscal year 2007. a total of 806 investors and family members immigrated to the United States in the EB5 category. That is not very many people. but even at that level. the EB5 immigrant investor program is expected this year to generate an annual rate of $1 billion in aggregate immigrant investment. creating more than 20.000 new direct and indirect jobs. Usage of the program is expanding as new regional centers get approved. The regional center program helps get investment money to some of the Nations poorest communities. creating jobs and revitalizing communities. In Vermonts poorest county. for example. a regional center investment has put $17.5 million into a ski resort at Jay Peak. This project is expected to create close to 2.000 jobs in the area. according to the New York Times. It is important that Congress reauthorize the EB5 regional center program. The pilot program has been renewed several times. and is currently due to expire. as I said earlier. on September 30 of this year. This bill would extend the EB5 regional center pilot program for 5 years. until September 30. 2013. When the subcommittee reviewed this bill. we had a discussion about looking at the level of investment and also the possibility of including venture capitaldriven investments. where its really the patents and ideas that are creating the jobs. We hope to be able to work with the minority to further pursue those ideas at a subsequent date. It should not deter us from proceeding today with this program that has proven to be valuable to our Nation by creating jobs for Americans. I reserve the balance of my time.