Leahy-Chaired Panel Hears Testimony
From Jay Peak President About Foreign Investor Program
WASHINGTON (Wednesday, July 22, 2009) – A panel chaired by Senator
Patrick Leahy (D-Vt.) heard testimony Wednesday morning from the
president of Jay Peak Resort, Bill Stenger, about a key foreign investor
program administered by U.S. Customs and Immigration Services (USCIS).
The EB-5 Immigrant Investor Regional Center Program has generated
hundreds of millions of dollars in states and communities across the
country since it was established in 1993. The program is also
responsible for the creation of tens of thousands of jobs.
Jay Peak is an active participant in Vermont’s Regional Center program
which was established in 1997. Vermont’s Regional Center projects
have drawn business and tourism to the state.
“In a small State like Vermont, a development project like Jay Peak has
an exponentially positive impact on the surrounding community.
Sugarbush also took advantage of the Regional Center program to generate
much-needed capital,” said Leahy. “And along with the positive message a
healthy and productive program like this sends to investors around the
world, the core purposes of the EB-5 Regional Center Program are to
generate capital investment and create jobs in communities around the
United States.”
Leahy has played a key role in extending the Regional Center pilot
program throughout the past several years, and has introduced
legislation in previous Congresses to make the program permanent.
Earlier this month, Leahy
secured an amendment to the Department of Homeland Security
Appropriations Act to make the program permanent. Currently, the
Regional Center program is set to expire in September.
Since 1993, the Regional Center program has created thousands of jobs
and generated millions of dollars in capital investments across the
United States. Under the program, foreign investors are required
to pledge a minimum of $500,000 to a project within a Regional Center
and can apply for an EB-5 visa. If approved by U.S. Citizenship
and Immigration Services (USCIS), foreign investors are granted a
conditional two-year green card. After two years, the investor
must provide proof that they have created at least ten jobs as a result
of the investment and have met additional investment requirements set by
USCIS.
The hearing is webcast live online, and an archived webcast will be
available
online later today.
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Statement Of Senator Patrick Leahy (D-Vt.),
Chairman, Senate Judiciary Committee,
Hearing On “Promoting Job Creation And Foreign Investment In The United
States:
An Assessment Of The EB-5 Regional Center Program”
July 22, 2009
The purpose of today’s hearing is to examine the EB-5 Immigrant Investor
Regional Center Program. This program has been responsible for the
investment of hundreds of millions of dollars, and the creation of tens
of thousands of jobs in American communities since 1993. The
program has paved the way for ski resort expansion in Vermont, dairy
operations in Iowa, energy development in Oklahoma and Texas, and the
manufacture of hurricane-resistant housing in Alabama. These are
just a few examples of projects financed by foreign investment through
the Regional Center program, and all indications are that interest in
the program is growing.
For years this program has been reauthorized on a temporary basis.
Currently, it is set to expire at the end of September. Making
this program permanent is a critical first step to its continuing
success. That is why earlier this month, I offered, with Senator
Sessions’ support, an amendment to the Department of Homeland Security
Appropriations Act, H.R.2892, to do just that. The amendment was
adopted on July 8, and I trust it will become law as part of that bill.
I also remain committed to considering changes to improve the overall
program. I have not yet introduced a broader EB-5 bill this
Congress, and so I invite the witnesses to suggest improvements to make
the program more workable for the agency, for communities and other
stakeholders, and for investors who use the program. I hope that
this hearing will initiate a dialogue about how Congress, the agency and
stakeholders can work together to ensure that the goals of job creation
and security can be met, and at the same time make the program as
effective and efficient as we can for those who are developing projects
in communities around the country. I strongly believe this program
has the potential to grow as a meaningful source of positive economic
development around the United States.
I thank the U.S. Citizenship and Immigration Services for testifying
today, as we all agree that the agency has a crucial role to play in the
program’s implementation. I also welcome Bill Stenger from
Vermont. Bill Stenger recognized years ago the opportunities that
the Regional Center program could bring to Vermont. He is
expanding Jay Peak, a wonderful ski resort, into a year-round resort, in
part by attracting foreign investment dollars. In a small State
like Vermont, a development project like Jay Peak has an exponentially
positive impact on the surrounding community. Sugarbush, another
Vermont ski resort -- which I can see from the steps of my farmhouse in
Vermont -- also took advantage of the Regional Center program to
generate much-needed capital. Just last week, my staff visited
with a company in Windsor, Vermont, called Seldon Technologies, the
inventors of carbon nanotube water purification systems. Seldon
Technologies is considering the EB-5 program as a way to fund domestic
manufacturing jobs here in the United States. I also welcome Ron
Drinkard of the Alabama Center for Foreign Investment, Stephen Yale-Loehr,
who is actively involved in the EB-5 Regional Center program, and
Michael Dougherty, a former Ombudsman for USCIS.
Immigration through investment is not unique to the United States.
Canada, England, and the rest of the United Kingdom all offer similar
programs. In fact, in the current difficult economy, Canada has
actively promoted its immigrant investment program around the world.
And but for the difficulties Congress has had reauthorizing this
program, entrepreneurs in the United States could be doing the same
thing with greater certainty. The program must be made permanent
in order to give confidence to investors that it is a viable, long-term
economic opportunity.
It should surprise no one that citizens of other countries are eager to
invest in the U.S. economy. And along with the positive message a
healthy and productive program like this sends to investors around the
world, the core purposes of the EB-5 Regional Center Program are to
generate capital investment and create jobs in communities around the
United States. I want to underscore that both of these benefits
are accomplished at no cost to taxpayers, and are not reliant on what is
currently a very restrictive credit market. Under the
program, in order to become a non-conditional lawful permanent resident,
a foreign investor must prove the creation of 10 new jobs. The job
creation requirement is central to the program, and ensures that foreign
investments translate into tangible benefits for Americans.
We can all acknowledge that the issue of immigration is a difficult one.
But I view the Regional Center program as less about immigration than
about job creation and capital investment in American communities.
I know this program is important in Senator Sessions’ State, just as it
is in Vermont. I hope the Ranking Member and I can work together
constructively to make this program a productive and positive part of
our broader immigration system.
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