Foreign Investors Program Renewed

Apr 25, 2018 | News, Newsletter

Brian Hicks.
Managing Director.
MidAmerican Global Ventures.

Amidst the moment-to-moment news blitz coming out of Washington DC, it’s easy for news-worthy items to be missed. But a program as successful as the EB-5 Program, also known as the U.S. Immigrant Investor Program, should not be lost in the headlines.  That the EB-5 program was once again renewed as part of the recently passed Congressional Omnibus Appropriations Act is a win for businesses, communities and foreign investors alike.

The EB-5 Program was created more than 25 years ago by the Immigration Act of 1990 to encourage wealthy foreign nationals to invest and create full-time American jobs in the United States in exchange for the opportunity to obtain U.S. permanent residency, often referred to as a Green Card.

While a foreign investor can make a direct investment in a project that they actively manage, the more common action is for an investor to invest his or her funds through a designated U.S. Citizenship and Immigration Services EB-5 Regional Center.  EB-5 Regional Centers can then pool many investor funds together to invest in larger projects.  Regional Centers then manage all of the federal reporting requirements for these investors and the companies borrowing the funds.  Generally EB-5 funds provide between 10 and 30 percent of the capital stack of a new construction project.

The foreign investor is primarily motivated by access to the Green Card and not for a particular ROI.  Therefore, EB-5 financing can be very attractive for U.S. developers or companies borrowing the funds.  Often EB-5 financing can be structured as non-recourse, interest-only loans for a 6-8+ year period at very competitive rates and is often subordinated to a senior lender.

The foreign investor typically invests $500,000 in a “Targeted Employment Area” (inner city, rural, higher unemployment areas, etc.).  The project must create at least 10 new full-time jobs for American workers in the U.S.  When investing through a designated Regional Center, the project is allowed to count indirect and induced jobs (i.e. construction jobs) created by the project in addition to any direct jobs associated with the project.

Brian Hicks is the Managing Director for MidAmerican Global Ventures (MAG Ventures), an EB-5 Regional Center in the State of Ohio. Structured as a true public-private partnership, whose partners include the Toledo Port Authority, Columbus-Franklin County Finance Authority, the Finance Fund, Columbus 2020, among others.  MAG Ventures works with Ohio developers and businesses to secure EB-5 capital and has funded a number of projects across Ohio.  Learn more at: http://www.midamericanglobal.com/

In Memoriam – The Life of Dan Evers

I first met Dan in the fall of 2016.  I had moved to Central Ohio over the late holiday season in 2015 to begin serving as the new Director of GROW Licking County CIC, Dan’s former role.  I was immediately struck by many in the community who worried that I would “not be enough,” that the “shoes were too big,” and that “Dan was larger than life.”  And they were right. 

read more

OEDA 2022 Annual Excellence Awards – Call for Nominations

The Ohio Economic Development Association’s annual Excellence Awards program recognizes the achievements of individuals and organizations in Ohio in the areas of economic and workforce development.  Submit your nominations today and have excellence in your community recognized statewide!

A panel of judges will evaluate the nominations, determine finalists, and select a winner for each of the categories noted below.  Award winners will be announced in conjunction with the 2022 OEDA Annual Summit, being held October 3-6 at the Exchange at Bridge Park in Dublin, Ohio. 

read more