Advocating for Job Growth, Credit Expansion

By Marcelo Bermúdez, President, Figueroa Capital Group, subsidiary of Charles Dunn Co.: With no one caring about the fiscal cliff, home prices have been rebounding and the stock market is higher than ever.

With no one caring about the fiscal cliff, home prices have been rebounding and the stock market is higher than ever. Job growth continues to be anemic but you can at least be thankful you’re not in Cyprus where everyone is about to have a levy on their deposits because of their bank’s poor risk management. Regardless, it seems the tipping point is here for the capital markets.

Our office has been seeing more debt funds popping up and traditional lending sources actively stepping back into the construction market. Just last week, we were notified by a lender that had been out of the market completely since 2010 they are now accepting applications for non-owner occupied single family residential construction projects. Housing represents anywhere from 15-19 percent of GDP (the total value of goods and services provided in one year) and contributes to it through investment and consumption spending on housing services. It’s also a great way to beat down the unemployment rate and bring even more confidence to individuals and the market. 

In addition, while it has been around since 1993, it has only been until recently that EB-5 has seen a true take-off in its value as an alternative form of capital. The U.S. government introduced the U.S. Immigrant Investor or “Regional Center” Program as a way for foreign investors to obtain permanent residency in the United States. By investing a minimum of $500,000 (in targeted high unemployment areas) or $1,000,000 in businesses in approved geographic regions that create at least 10 full-time permanent jobs for U.S. workers, qualifying foreign investors and their families can obtain a “conditional” or temporary (2‐year) green card. This action can cover tons of industries including green projects, entertainment, infrastructure, sports, and real estate. This investment helps to create induced jobs in addition to direct jobs. 

President Obama mentioned in his address in February, that “Deficit reduction alone is not an economic plan.” With these kinds of good signs showing up in the market, we can make that statement true and continue to advocate for job growth and credit expansion.