Susan Donegan and Patricia Moulton are the leaders of two critical state agencies – The Vermont Department of Financial Regulation and The Vermont Department of Commerce. They have worked in state government for many years and are capable leaders. The problem is that they are responsible for a state/national program that has not gone well in Vermont – the EB-5 investor program.
The following was reported in the June 27 issue of the Rutland Herald: "The EB-5 foreign investor-funded project at the base of Okemo Mountain Resort has come under new regulatory scrutiny over statements in its financial prospectus to investors." In effect, the state's DFR has taken away from the developers the authority to bring in new investors until there is more accurate reporting on what the risks to potential foreign investors might be.
The EB-5 program is a federal program that was adopted several decades ago to attract foreign investment for U.S-based projects. To recap, if a foreign investor invested $500,000 or more (over and above the $50,000 application fee) in an approved project, the investor would – in addition to a return on his/her investment – gain a green card, which is a pass to stay in the U.S.. Another contingency is that the project must create 10 permanent jobs.
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