What is Business Outlook for Foreign Investors in the U.S.?

It is undeniable that the U.S. never fails to attract people from other countries. Whether for a holiday, to pursue higher education, to work or do business, foreigners are always eager to be in this land of opportunity.

On the business side, the U.S. continues to enjoy a favorable economy partly due to direct foreign investments. Owing to its strong position in the global economy and political climate, many entrepreneurs are enticed to invest or set up their own business in America. The U.S. is, in fact, among the world’s most attractive investment destinations along with China and Hong Kong.

Foreign companies make various investments such as build new factories, fund research and development, grow their U.S. operations and hire millions of Americans in jobs that pay well. In 2014, foreign investment in the U.S. (FDIUS) economy amounted to $12 billion although this was lower than the previous year’s figures. The year 2015 was better as FDIUS already surpassed $320 billion in the first three quarters.

Foreign investors continue to be drawn to the American economy due to various advantages, according to the FDIUS report by the Organization for International Investment. Apart from its open markets and favorable investment climates, it has an unmatched consumer market, a world-class system of higher education, skilled and productive workforce, entrepreneurial culture of innovation and a transparent regulatory environment among others.

The outlook for foreign direct investment in the U.S. remains bright. Based on a five-year forecast from 2016-2020 via ecometric models, it is expected the country will gain foreign direct investment worth an estimated $33,221.19 USD million in the year 2020.  

Latest data revealed an increased demand for the U.S. immigration program for foreign investors, confirmed immigration lawyers. The Chinese particularly those investing at least $500,000 are on top of the list with more than 80 percent of EB-5 visas issued to them, they added. Ideally, a foreign investor needs to obtain two to three visas not only for himself but as well as for his family members.

Immigration Applications

In 2015, a record demand was noted for this federal immigration program that offered green cards to foreign investors. Called EB-5, the program allows only 10,000 visas each year but instead received 17,691 applications from investors. This figure was a big jump from the 2014 number of 11,744 and from the 6,554 applications in 2013.

The surge was said to have been prompted by the pending expiration of a portion of the EB-5 program. On the other hand, the high interest shown by the Chinese was due to China’s slowing economy.

Eligible to join this program are aspiring immigrants who can invest at least $500,000 in certain businesses. Each business must be able to provide jobs to 10 people.

How Can Entrepreneurs Become U.S. Immigrants?

Entrepreneurs from other countries who can invest in a commercial business in the U.S. and who can provide at least 10 permanent full time jobs can apply for permanent residency. They can even include their spouses and children who are not married and below the age of 21.

The U.S. Citizenship and Immigration Service (USCIS) requires that entrepreneurs must invest at least $500,000 in a targeted area with high unemployment rate or a rural area. The basic documents you need to submit are the Form I-526 or the immigrant petition by alien entrepreneur.

Category Business