Fast-track to U.S. residency: immigrant investor program gains a following in Colorado.

• Author: Peterson, Eric
• Position: IMMIGRATION

$500,000 AND 10 FULL-TIME JOBS.

That's the going rate for a visa or two-year green card via the EB-5 Immigrant Investor program. Foreign investors in commercial projects get fast-tracked to permanent legal residency --although the term "fast-tracked" is somewhat relative.

Established in 1990, the program grants up to 10,000 visas a year, with as many as 90 percent of them going to Chinese applicants. While EB-5 money was subsequently used to great effect in New York, Los Angeles, Chicago and other major cities, Colorado has been largely off the investors' radar.

That might soon change, however. There are now seven federally designated EB-5 regional centers that have hung a shingle in Colorado and are looking for deals that could be a good fit. But there are a few hurdles to overcome.

Although the EB-5 cap was reached before summer's end in 2014--the first year it's been maxed out in history--it tends to be a last resort for many investors, as it can take up to two years to process the paperwork.

Rep. Jared Polis is pushing to streamline the process and make the program permanent --it is set to expire on Sept. 30, 2015. He has introduced legislation designed to reduce the processing time and increase the cap.

"Essentially, if someone wants to invest in our country, there should be an opportunity for them to do that," says Polis. "We are working on improving the program significantly with our bill. Sometimes the opportunity is gone once the application is approved."

Polis says the local impact could be pronounced. "It's a lower cost of capital for low-risk projects. It could lead to a development boom in Colorado."

Waveland Ventures, with offices in Denver, Austin and Milwaukee and an EB-5 regional center for the state of Colorado, raised $80 million of convertible debt from EB-5 investors to build Solaris Residences in Vail. The $380 million project was completed in 2012, but the financing was in the works in the midst of the 2008 fiscal crisis.

"At that time, the world was coming to an end, at least financially," says Waveland CEO Rick Hayes. "There weren't other sources of financing available. It put stress on the project."

While the $330 million Empire Outlet Mall and adjacent hotel Waveland is currently financing on Staten Island, N.Y., includes $175 million of EB-5 money, Hayes says the program is usually a last resort for developers and financiers--as is the case right now. "The value proposition of EB-5 is certainly not as strong as...