Veteran political adviser Stephen Studdert is a leading figure in an Orem-based company that has received federal approval to help foreign entrepreneurs invest in Utah businesses in exchange for work visas and, eventually, U.S. citizenship.

Mountain States Center for Foreign Investment was designated Aug. 11 as Utah's first "regional center" by the U.S. Citizenship and Immigration Services (USCIS).

Designed to promote economic growth, these centers link up foreigners interested in obtaining U.S. green cards, known formally as EB-5 visas, in return for a minimum $500,000 investment in companies that can be shown to create or preserve at least 10 American jobs.

"We're excited to be at the forefront of this," said Heath Westfall, a Brigham Young University graduate and former venture capitalist who is president and CEO of the Mountain States Center.

He works closely with Studdert, who was an adviser to Republican presidents Gerald Ford, Ronald Reagan and George H.W. Bush, and with Studdert's sons, David and Michael; and corporate attorney Bryce Higbee.

"This is a great opportunity to help Utah grow. We've been one of the country's fastest-growing states, and there are lots of opportunities for growth," Westfall said. "Our job is to help potential investors see what's available."

Mountain States Center's focus is on the hospitality industry, particularly attracting investment in Marriott-branded properties developed and/or operated by Z H Lodging, a company Westfall has worked with since 2006.

But it also is authorized to pursue foreign investments that could be used in Utah and other parts of the West in fields as varied as horse ranch development, high technology, health-care services and innovation, entertainment, education and infrastructure.

Without providing details, Westfall said "we have several projects around the state that are in the pipeline. We anticipate having all of the funds put together for our first project in 60 days." He added that center officials have been in discussions with investors in China, the Middle East, Japan, Russia and several other countries.

Although the once-obscure EB-5 visa program has been around since 1990, interest has increased substantially since the recession began. The number of capital-investment visas issued by USCIS jumped from 806 in fiscal year 2007, before the financial meltdown occurred, to 4,218 last year.

Citing State Department figures, the Washington, D.C.-based Migration Policy Institute said 3,340, roughly 79 percent, were issued to applicants from Asia, 1,979 to Chinese nationals.

"This trend may indicate the EB-5 investor visa program is becoming an especially attractive option for wealthy foreign nationals who might otherwise face long backlogs in family- or employment-based visa categories," said Institute report authors Muzaffar Chishti and Claire Bergeron.

In addition, the number of "regional centers" authorized by USCIS to ease the flow of foreign money into U.S. businesses has grown markedly. There are 112 in 32 U.S. states, Washington, D.C. and Guam. Congress recently agreed to extend authorization of the centers for three years amid bipartisan efforts to make them permanent.

"As we were working on other international projects, this program came up on the radar," said Westfall, noting that Mountain States Center gets a management fee for assembling deals and equity in the financed venture.

The program requires foreign investors to put $1 million into a business in a "targeted employment area" where the unemployment rate is 150 percent of the national average. The requirement is reduced to $500,000 for rural projects, the area where Utah fits in because the state's unemployment rate is below the national average.

To qualify for an EB-5 visa, a foreign investor initially applies for a conditional visa that requires submitting a business plan and detailed economic analysis showing how the money will create or preserve jobs, either at the recipient business or in companies that support it.

Two years later, if an investor can show the goal has been met, he or she can apply for a visa granting permanent resident status and also get them for a spouse and children under age 21.

Although this process could raise concerns of being misused by foreigners simply to obtain residency, U.S. Department of Homeland Security spokeswoman Luz Irazabal said investors are subjected to a rigorous review before they can qualify for a conditional visa.

"It's not just a matter of 'If you have $1 million you can just get into the U.S.' We take these applications seriously," she said. "Everything needs to be in order. We do standard background checks. We have a group of officers who specialize in doing this."

The vetting process to become a regional center also is tough, Westfall added, contending it took 2½ years and resulted in an application file of economic studies and reports several inches thick.

"We have to make sure the projects work — and work well," he said.

mikeg@sltrib.com —

Management team

Heath Westfall, president and CEO • Has worked with Z H Lodging on development projects in the United States, United Kingdom and China.

Stephen Studdert • Adviser to presidents, organizer of inaugurations, founder of businesses and diplomat, he is an adviser to the under secretary general of the United Nations.

David Studdert • Stephen's son, one-time national tour manager for Warren Miller Entertainment and appointee to U.S. Agency for International Development. Fluent in Russian.

Michael Studdert • Another Studdert son, he was a special assistant to the U.S. Environmental Protection Agency administrator during George W. Bush's presidency.

Bryce Higbee • Chief legal counsel, he studied international relations at Utah State University before getting his law degree from Idaho University. Fluent in German. —

EB-5 visas

Foreign entrepreneurs may obtain green cards leading to permanent U.S. residency through investments of $1 million in American businesses ($500,000 for companies in rural areas) that produce or save 10 jobs.

"Regional Centers" approved by the U.S. Citizenship and Immigration Service can serve as the conduit between investors and recipient companies.

Two years after receiving a conditional visa, foreign investors can make it permanent by showing how their money created or preserved jobs. Going through regional centers allows a more lenient job-creation requirement, counting "indirect" jobs.

The law allows 100,000 visas per year based on business investments.

Visa recipients can include husband, wife and unmarried children under 21.