The federal program, known as EB-5, is relatively small, capped at 10,000 visas annually. But applications have skyrocketed since 2006 as entrepreneurs and cash-strapped towns have begun aggressively wooing wealthy foreigners as a low-cost source of capital.
In San Bernardino, the city is tapping EB-5 funds to redevelop its downtown theater district. In
Jupiter, Fla., overseas money is fueling the construction of an outdoor amphitheater, marina slips and entertainment hub. In
Philadelphia, it was used to expand a hospital complex and improve a school for disabled children.
In the hamlet of Jay, Vt., where Englishman Joyce was part of a $215-million investment pool, EB-5 money has helped finance luxury condos and a new ice hockey arena. Up next: an indoor water park, a golf complex and a hotel aimed at attracting more visitors to the ski town hit hard by the recession.
"We tried going to banks, but the lending environment was impossible," said Bill Stenger, chief executive of the Jay Peak Resort. "There is no way we could have done this without EB-5."
The agency has approved 43 regional centers to work on projects based in California, more than any other state.
Retailer
Kohl's, toy maker Mattel and others also leased warehouse and manufacturing facilities in the area. More than 4,000 jobs have been created so far, according to San Bernardino city officials.
"When the meltdown happened, our unemployment shot up like a high temperature," said San Bernardino Mayor Patrick J. Morris. "That money helped us keep going.... EB-5 money is crucial to us, then and now."
