The EB-5 Program and its collaboration in recovery efforts in disaster contexts
In natural disaster contexts, one option that has been used to support recovery efforts is the EB-5 program. By being a source of funds for projects that support recovery, the immigration program contributes to a more resilient and prepared State.
The EB-5 Immigration Program has historically served, since its inception in 1990, to foster the economic development of the United States through foreign capital, especially in slower or slower-developing areas (also known as TEA areas).
But although that has been its main objective, which it has more than fulfilled, it has also served other purposes, such as alleviating the economic burden that is generated, for example, as a result of natural disasters that have occurred in the country.
In this sense, Roy Carrasquillo, managing shareholder of Carrasquillo Law Group PC, acknowledges that “the EB-5 program, although it was used mainly to support economic development, has also been used to finance recovery and disaster relief efforts in several regions, including Puerto Rico, which was affected by multiple natural disasters over a three-year period that caused disastrous effects on the infrastructure and economy.”
Puerto Rico is a US island territory located in the northeastern Caribbean Sea. Hurricane Maria struck Puerto Rico in September 2017, destroying thousands of homes and severely damaging infrastructure.
The powerful Category 4 storm devastated the island and created a humanitarian crisis for its 3.4 million people. The hurricane left $90 billion in damage. A series of earthquakes and then a global pandemic dealt a new blow to the island.
In response, the EB-5 program was used to support disaster relief and rebuilding initiatives along with various recovery funds, such as Community Development Block Grant (CDBG) mitigation funds, which is a specific type of funding provided by the US Department of State Housing and Urban Development (HUD).
EB-5 Funds in Aid to Disaster Victims
When a natural disaster occurs, funds are allocated in response to an order issued by the president, with the primary goal of assisting recovery and mitigation efforts. In addition, Puerto Rico has also received CDBG Mitigation (CDBG-MIT) funds that are designed to be used for projects that work in conjunction with local and regional planning efforts.
In 2019, an EB-5 project in Fajardo, Puerto Rico secured $10 million in funding to support the redevelopment of a historic hotel that was damaged by Hurricane Maria. The hotel initially opened in the 1960s and was closed for four years after the hurricane, but reopened in May 2021.
The project, called “El Conquistador Resort,” helps provide employment opportunities for local residents and boost the island’s tourism industry.
“Projects within these communities would greatly benefit from EB-5 funds to help rebuild their towns and cities and may also help qualify EB-5 investors for expedited processing due to the national interest associated with relief in cases. disaster, explained Reza Rahbaran, Managing Attorney at Rahbaran & Associates.
Some specific examples of how EB-5 can be used include infrastructure projects, housing and healthcare developments, renewable energy projects, and economic revitalization.
“EB-5 investments can be key to rebuilding and improving the island’s infrastructure, including roads, bridges, water treatment facilities, and telecommunications networks. These projects not only improved the overall resilience of Puerto Rico, but also created job opportunities for local residents,” said Carrasquillo.
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With a presence in the real estate sector in the states of Florida, Texas and New York, BAI Capital specializes in generating value from the acquisition of land to the development of mixed-use projects, such as residences for the elderly, student residences, multifamily buildings. for rentals and mixed use, including condos and retail.
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You already know how the EB-5 Program assists in disaster recovery efforts. If you are looking to protect your capital from inflation through investments with returns in dollars, or invest in projects that qualify for the EB-5 investor visa to get a Green Card, complete our form and an agent will contact you.
