Michigan Pushing for EB-5 Designation

EB-5 Center

Early this week, Michigan Gov. Rich Snyder announced that his state plans to apply with USCIS to become the second state in the country with a state-sponsored EB-5 center. The EB-5 designation would pave the way for foreign nationals to invest in Michigan-based businesses in exchange for legal immigration status within the United States. Vermont is currently the only other state with an EB-5 center.

This is significant because establishing an EB-5 center in Michigan would allow the state and businesses operating within it to actively recruit foreign nationals to invest in the local economy in areas that would create new, long-term opportunities for employment for the state’s residents. To qualify for the EB-5 program foreign nationals must invest at least $500,000 into a new or existing business in the EB-5 designated region. Among other requirements, the investor must also prove that the investment will create 10 new and permanent jobs for U.S. citizens or residents. As a state whose largest city, Detroit has currently taken the unprecedented step of declaring bankruptcy after years of struggling with profound fiscal challenges, the governor’s decision to pave the way for an influx of foreign capital will hopefully be met with enthusiasm.

Though the DC metropolitan region is not in as dire of a financial situation, I hope that our local politicians will get on board and begin applying for EB-5 designation as well. While it’s still possible to apply for an EB-5 visa in our region, or any other state within the U.S. as long as you meet certain criteria, establishing an EB-5 designation for the entire state simply makes the path that much easier and more predictable for investors. I’m sure many Washington, DC residents who have struggled with unemployment over the past several years would be more than happy to make the District of Columbia a more desirable place for foreign investment – and the jobs that kind of investment brings – to land.