How to use Foreign Investors to Help the American Economy Recover

Many businesses are running out of ideas on how to get funding. Little do they know, immigrant investors could provide the necessary capital to help the economy recover in places where the recession has hit hard.

It is no secret that the American economy is not in its best shape right now. Even though many analysts in the finance industry are saying that the recession is now over and that things are looking up, the effects of the recent economic downturn are still being felt. Unemployment is still high in many regions, and businesses are not bringing in as much money as they were before. This affects everyone in the country, and creates a domino effect. Think about it: businesses make less money, they are forced to eliminate jobs, consumers therefore have less money to spend, and businesses make less money.

Financial institutions are also reluctant to provide funding for many businesses, especially small and medium sized enterprises. Banks themselves have been affected by the economic troubles and many banks have failed, something which very few people would have expected a few years before. So how do businesses get the funding they need to get up on their feet and restore the economy? While there are some government funding programs in which federal, state and local governments take up initiatives to give grants and loans to various types of businesses, these funds are getting scarce.

All of this means that foreign investors are in increasing demand in the United States. This makes the Immigrant Investor Visa program a very useful tool in order to develop the American economy. Also known as the Eb-5 Visa Program, it lets foreigners obtain permanent residence rights in the USA by investing a minimum amount of $500,000 in a government approved regional center. These regional centers are located in areas that are in need of funding and where job creation is a priority.

Immigrants who are approved for the program receive a Green Card Visa, meaning that they will be allowed to reside legally in the United States, as well as to live, work, study, or conduct business there. Pursuant to certain conditions, they may also bring family members, who will also be given a green card visa with all of the associated privileges.

How exactly does the immigrant investor visa plan help the economy? The investment made by the immigrant needs to be done in a way that will create at least 10 permanent, full-time jobs for American citizens and residents. Obviously, job creation is not the only thing that it does. A business does not function alone. It needs suppliers for merchandise, as well as service providers such as communications, transport of goods, renovation and expansion of their premises, etc. All of this keeps money flowing through the U.S. economy, and provides a great amount of help to stimulating its recovery.

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This entry was posted on Thursday, June 30th, 2011 at 2:35 pm and is filed under Banking/Finance, General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.