PROVIDENCE — Real-estate developers and other businesspeople in Rhode Island have a potential source of new financing as a Providence investment group has become part of a federal program aimed at stimulating foreign investment in the United States.
Pathway Capital Partners LLC intends to use the federal Immigration Investor Program — known as EB-5 — to draw money into Rhode Island for a range of business ventures.
"Our designation will give developers a unique opportunity to capitalize projects in Rhode Island with the participation of foreign investors," said Henry M. Diamond, chief executive officer of Pathway Capital Partners. "We need to be smart about bringing jobs and economic development to Rhode Island, and this program can help the state become a magnet for foreign investment.
"We feel it's a great opportunity for us to help out the local business community."
Congress created the EB-5 program in 1990 during a recessionary period to stimulate the U.S. economy. The program allows residents of foreign countries who invest at least $500,000 into certain commercial enterprises in the United States to get an immigrant visa — one that extends to their immediate family as well. The investments, which can be pooled with financing from other program participants or other sources, must create or preserve at least 10 full-time jobs for U.S. workers within two years.
The EB-5 program is overseen by the U.S. Citizenship and Immigration Services.
The program has grown steadily since a pilot effort began in 1992. EB-5 filings have surged for the past three fiscal years, according to a report of the agency's ombudsman, with more than 7,400 EB-5 visas issued in fiscal year 2012.
There now are more than 320 EB-5 regional centers around the country.
Regional centers identify investment opportunities, sometimes in partnership with area economic development agencies. They also assist in marketing those opportunities to foreign investors, who ultimately must be approved by the federal immigration service.
Money from EB-5 investors has been used in hotel and resort projects, assisted-living centers, military base redevelopments and other enterprises.
Diamond credited U.S. Sen. Jack Reed with aiding Pathway's approval as the first Rhode Island EB-5 regional center. The Pathway founder said he expects to work closely with Providence city officials as it markets investments to foreign nationals.
Both Reed and Mayor Angel Taveras were on hand for the announcement.
Reed said Pathway's program can help the state "leverage" Rhode Island assets, such as the runway extension at T.F. Green Airport. Taveras called the program "a great opportunity" for the city and state economies.
Pathway will work out of a North Main Street office provided to it by accounting and business consulting firm Kahn Litwin Renza & Co.
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