Investing in the most coveted EB-5 visa to obtain permanent residency status in America will soon be an expensive affair with its price getting nearly doubled from $500,000 to $900,000. In general, under the EB-5 investor visa program, high net-worth individuals are required to make a necessary investment into a government-approved project in the US and create at least 10 full-time jobs for the qualified US citizens in rural areas. The program also allows an entrepreneur’s family to apply for American green cards. The invested amount can be redeemed after five years. The majority of EB-5 visa programs are monitored through EB-5 regional centers, which further distribute the invested funds to multiple projects occurring across America’s metropolitan regions and rural areas.
However, as per the current regulatory modifications by the US Department of Homeland Security, the standard minimum investment amount to obtain an EB-5 green card has changed from $500,000 to $1.35 million dollars. The overhaul in price is definitely a set-back for foreign investors dreaming of getting an EB-5 green card at a relatively low cost.
Popularly known as the “Golden Visa”, the EB-5 investor visa was first launched in 1993, and since then it has helped thousands of foreign investors realize their American dream. The program has also seen a high-growth in terms of attracting funds across the globe starting from a base of $300 million dollars to $7 billion and even more. However, irrespective of how many highs the program has seen, the EB-5 too has its own share of criticisms or controversies. The major source of concern is that most of the investors’ funds were diverted to luxurious projects instead of intended ruler areas. Fraudsters continue to use deceptive methods to invest this money to generate their own profit and thus abuse the program in multiple ways.
Below-mentioned is some of the key modifications of the EB-5 rule:
The qualifying investment amount for a non-TEA will be raised from $1.8 million from $1 million. Whereas, the minimum investment amount in a TEA will increase to $900,000 from $500,000.
The rise in investment amount is a significant step towards reducing the cases of fraud and to stimulate economic growth in accordance with the original intent of the visa.
The final rule depicts that EB-5 investments often fail to reach economically distressed areas because of gerrymandering practices that address only highly affluent areas and are more attractive to investors.
The new rule makes it clear that family members who are lawfully residing in the U.S, must file for an independent request to remove conditions on their Green Card.
The above-mentioned amendments to the EB-5 visa program will going to increase the minimum amount of investment, and therefore, prospective investors might have to look for different alternatives to realize their dream of becoming global entrepreneurs.