Proposed Changes to the EB-5 Immigrant Investor Program
The EB-5 program allows investors (and their spouses and unmarried children under 21 years of age) to apply for permanent residency (a green card) if they:
- Make the necessary investment in a commercial enterprise in the United States; and
- Plan to create or preserve 10 permanent full-time jobs for qualified U.S. workers.
This program was created by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors. The EB-5 program is set to expire again on April 28, 2017 and must be renewed by Congress in order for the program to continue.
The EB-5 program has been the subject of controversy from legislators who see it as a way for foreign nationals to “purchase” a visa by making the required investment. A new bill was introduced in the House of Representatives that would end the EB-5 program altogether. On the other hand, Senator Rand Paul introduced a bill on March 27, 2017 that would create a permanent EB-5 visa program and would increase the availability of visas by eliminating the per-country cap on applications. Because of the controversy surrounding the EB-5 program, its renewal by Congress is never guaranteed.
While it is uncertain whether Congress will do away with EB-5, we do know that the Government has proposed more restrictive changes to the program, including an increase in the required investment amount. Currently, EB-5 applicants are required to invest $1 million in a new commercial enterprise, or $500,000 if the investment is in a rural or economically disadvantaged area, known as a TEA (Targeted Employment Area). The proposed changes would increase those amounts to $1.8 million, or $1.3 million in a TEA. These proposed changes are subject to mandatory Notice and Comment Rulemaking and will not go into effect until after April 2017.
For more information regarding the EB-5 program, please contact the experienced immigration attorneys at Monty & Ramirez LLP at 281-493-5529 or via email at info@montyramirezlaw.com.