EB-5 is properly structured, administered and regulated. It is a great program and does exactly what it’s supposed to do: create jobs and thereby grant permanent residency to those foreign investors.
Riverside, CA (PRWEB) September 27, 2012
Kraig Schweign, CMB’s Vice President of Worldwide Operations, explained that they are not a lender to the Federal Government, but a lender to whatever entity wants to take what used to be a military base and convert it into civilian purposes. He says EB 5 is a nontraditional form of funding.
The dissolution of the Redevelopment Agencies in California will impact CMB’s future projects. Schweign said their existing public projects are continuing, but the financial obligation transfers from a redevelopment agency to a successor agency. How CMB approaches future public projects will change and Schweign says they will adapt to the current rules and regulations.
Patrick Hogan, founder, President/CEO and Managing Member knew he needed to work in areas that adhered to EB-5’s Target Employment Areas, which are communities with high unemployment. Hogan dared to ask: why not work in areas with an induced high unemployment, areas where the government has an interest in trying to correct the problem, a problem they created. After all, it was the Federal Base Realignment and Closure Commission, commonly known as BRAC, that caused unemployment in these areas. The closure of 29 military bases across California in the early to mid 90’s adversely affected their surrounding communities. Regions that were once thriving from the jobs and economic activity that these bases provided became blighted with poverty and high rates of unemployment after the bases were closed. Hogan saw the EB-5 program as a solution and created CMB, which stands for Closed Military Bases to seize the opportunity through EB-5 funding to turn these closed bases into business centers that would once again bring jobs and money into these communities.
Starting with their first Regional Center in Ohio called CMB Summit, CMB pioneered a unique business model they say has withstood the test of time with some minor modifications along the way. Their second Regional Center is in California and is called CMB Export.
CMB’s projects focus on infrastructure because infrastructure creates immediate jobs and then encourages quality businesses to invest in expansion. At Norton Air Force Base in San Bernardino, CMB worked in concert with the Inland Valley Development Agency and the San Bernardino International Airport Authority to help fund infrastructure improvement, which proved instrumental in turning the abandoned base into a massive distribution center that attracted companies including Kohls, Mattel and Stater Bros., thus creating new, permanent employment. CMB has also been a lender to roadway projects, water and sewer projects, airport runway projects, small scale renewable energy projects and utility scale renewable energy projects.
To date, CMB has coordinated about 500 million dollars in EB-5 investments in California and Ohio and has played a key role in creating 16,000 new jobs. Schwigen, however is quick to point out that CMB is only a portion of what makes their projects a success. He says that if EB-5 is properly structured, administered and regulated, it is a great program and does exactly what it’s supposed to do: create jobs and thereby grant permanent residency to those foreign investors who made this possible and for those investors to see a return on their capital.
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