CMB is one of the oldest active Regional Centers in the EB-5 industry and our company founder and CEO, Patrick F. Hogan, has been involved with the EB-5 program since 1994, which coincides with the establishment of the Regional Center Pilot Program.
California Military Base RevitalizationCMB Export LLC ("CMB Export"), CMB’s first regional center, was originally approved in 1997 to operate in and around six former or realigned military bases across three California counties. The military bases named in our original CMB Export regional center application were George Air Force Base, Norton Air Force Base, Mather Air Force Base, Sacramento Army Depot, McClellan Air Force Base and the realigned March Air Force Base. CMB Export has since expanded to cover the entire State of California and Nye County, Nevada. The original CMB investment concept focused upon communities that had been devastated by California military base closures, which resulted in the loss of the tens of thousands of jobs associated with the operation of those military bases.
This concept-driven business model with an emphasis on infrastructure development was undertaken by CMB for several reasons. Former military base communities faced numerous challenges to rebuild or reinvent their economy. Each former military base had old military infrastructure that could not meet modern standards. Most former military bases were faced with environmental problems, such as asbestos abatement, contaminated water tables and other significant environmental remediation impediments. Often, demolition is the first step towards infrastructure improvement. Infrastructure is the backbone of community development and provides the foundation upon which all economic activity and job growth are based. Infrastructure costs frequently are the single largest obstacle to creating new jobs and increasing regional productivity in any community development plan. CMB EB-5 investment capital helps communities balance several factors that influence both the timing of infrastructure requirements and available revenues to fund them.
CMB’s Business PlanCMB later decided to apply the lessons learned in the initial military base revitalizations in California to communities across the U.S. while still utilizing the same successful fundamental structure.
The CMB EB-5 approach is simple: Traditionally, CMB EB-5 partnerships provide a six-year loan to a developer of a project that requires interest only payments. Depending on the particular project, these loan agreements may be with government agencies, public/private partnerships or experienced private developers. CMB EB-5 funds are combined with additional public and private funds to finance the construction of the specific project or projects. The benefit of this early-stage “seed” financing is to jump-start the activity of construction, improvements, or repair in the absence of other funding sources. The timing and resources necessary to complete each project will vary depending on the nature of the project. Some projects are one-time events within a single development, while other projects are multi-phase long-term projects. The availability of early-stage alternative financing for infrastructure and construction projects initiates a chain reaction of economic development that results in significant new American job creation.
CMB Regional Centers TodayToday, CMB operates 16 Regional Centers and has scope within 22 states and Washington D.C. CMB has experience in collaborating with all levels of government and private industry to achieve the primary goal of the EB-5 program — create jobs in the areas of the country that need them the most.
CMB has raised over $2.8 billion in EB-5 investment capital that has been combined with more than $10 billion in public and private funds. This combination of capital and the multiplying effect of spending is projected to generate over 172,000 (direct, indirect, induced) new American jobs through projects funded since 2007. CMB has been able to achieve this record of success while working in significantly depressed areas of the country. These regions are filled with opportunity, they simply need some help to restart their economic engine.