EB-5’s Role in Driving Private Capital and Job Creation
Part 2 of 5 in the EB-5 Economic Impact Webinar Series
EB-5 has always been about more than just immigration—it’s a source of capital that fuels job creation, often when it’s needed most. As revealed in the recent IIUSA Economic Impact Study and unpacked by experts during the June 2025 webinar, the program is uniquely positioned to attract private investment, fill financing gaps, and support communities—especially during periods of economic uncertainty.
In Part 2 of our series, we examine how EB-5 serves as both a catalyst and a cornerstone for economic development.
A Powerful Multiplier: $1 in EB-5 = $3.30 in Total Investment
One of the most compelling data points from the study: for every $500,000 invested through EB-5, an additional $1.6 million in private capital was mobilized. That’s a 3.3x return on EB-5 dollars—and all without costing U.S. taxpayers a cent.
“EB-5 is only one part of the capital stack,” explained Dr. Jerry Paytas of Fourth Economy, who led the study. “But it brings in significant matching funds and has an impact across every major sector—from construction and hospitality to education, retail, and healthcare.”
EB-5 as a Lifeline During Financial Crises
For many projects, EB-5 isn’t just an enhancement—it’s essential. That was especially true during the 2008 financial crisis, and again during COVID-era market uncertainty.
“Qualified, shovel-ready projects lost financing overnight,” said Ed Smith of JTC. “EB-5 stepped in—not just as a reliable capital source, but as a beacon of hope for developers and communities alike.”
Christine Chen, COO of CanAm Enterprises, shared a similar perspective. “I still remember a Pennsylvania convention center expansion where even bond financing was in jeopardy. EB-5 stepped in, and the governor himself acknowledged that EB-5 made that project possible.”
As Chen put it, EB-5 doesn’t just fill gaps—it unlocks opportunity. And over time, it’s become a more mainstream, accepted component of the financing landscape. “Today, when people hear ‘EB-5,’ they recognize it as a serious tool. That wasn’t the case 15 years ago.”
Beyond Capital: Building the Job Market
Job creation is at the heart of EB-5. And the study’s findings exceeded expectations: an average of 45 jobs were created per EB-5 investor—well above the 10-job minimum.
Those jobs aren’t just temporary or low-wage roles. According to the study, the average job created by EB-5 investment paid $74,000 annually, supporting long-term career development and family stability.
“Economic mobility matters,” noted Smith. “We’re not just creating jobs—we’re creating pathways for people to grow, to lead, and to reinvest in their communities.”
A Strategic Alternative to Other Development Tools
EB-5 is often compared to programs like New Market Tax Credits (NMTC) or Opportunity Zones (OZ). But the key distinction? EB-5 comes at no cost to the U.S. government.
“As Dr. Paytas pointed out, NMTCs and OZs rely on public subsidies or foregone tax revenue,” said Chen. “But EB-5 is self-funded by investors. It’s foreign direct investment that brings real impact with zero taxpayer burden.”
What It All Means
As the economic landscape shifts and U.S. policymakers seek sustainable ways to rebuild and grow, EB-5 offers a rare combination of private capital, job creation, and fiscal efficiency.
“EB-5 is a strategic economic driver,” Chen emphasized. “When we can show potential partners and legislators this kind of data, it’s incredibly persuasive. These aren’t just numbers. They represent real communities that have been revitalized.”
Watch, Share, and Engage
Read Part 1 of the IIUSA blog series: EB-5’s Economic Impact—By the Numbers
Download the full IIUSA Economic Impact Study
Share these findings to help build awareness and support for EB-5 as a smart economic policy tool.
Stay tuned for Part 3 in our series, where we explore how EB-5 is transforming rural America through infrastructure development, workforce training, and long-term revitalization.
