The EB-5 visa is a visa which enables non-US citizens to obtain US lawful permanent resident status, based on investment in the US economy.
At the time of writing, an investment of at least $1,000,000 is generally required in order to obtain an EB-5 visa. However, if the investment is made in a designated Targeted Employment Area (TEA), a minimum investment of $500,000 will suffice. TEA areas are generally low-income and rural areas where investment is needed to boost the economy. 10,000 EB-5 visas are available annually.
Upon successfully obtaining an EB-5 visa, the EB-5 investor will be awarded a Conditional Green Card, valid for 2 years. The EB-5 investor may obtain derivative EB-5 visas for any spouse and unmarried children under the age of 21.
The Conditional Green Card is valid for 2 years, in the first instance. Prior to the expiration of the Conditional Green Card, the EB-5 investor must apply to have the conditions removed. Upon successful application for removal of conditions, the EB-5 investor will become a Permanent Green Card holder. Conditions will generally be removed upon application, provided the EB-5 requirements continue to be met when the application is made.
The Increase In EB-5 Investor Visas Awarded On The Basis Of A Minimum $1 Million Investment In The US Economy
Surprisingly, the number of EB-5 visas awarded on the basis of a minimum $1 million investment in the US economy appears to have increased slightly, under the Trump Administration. During the final 15 months of the Obama Administration, 15.3% of EB-5 visa applications were denied. Only 7.9% of such applications were denied during the first 9 months of the Trump Administration.
However, unfortunately denial rates of EB-5 visa applications based on investment in a regional center have increased under the Trump Administration. Regional Centers, designated by the U.S. Citizenship and Immigration Services, are entities, organizations or agencies that seek to promote economic growth within a specific geographic area of the United States, by increasing export sales, improving regional productivity, generating employment opportunities and increasing domestic capital investment. In the final 15 months of the Obama Administration, 21.2% of EB-5 visa applications based on investment in regional centers were denied. This figure increased significantly to 38.7% of applications, during the first 9 months of the Trump Presidency.
Why Is The EB-5 Visa Program Controversial?
In recent years, the EB-5 visa program has been under sustained attack by critics who contend that the visa simply allows foreign investors to “purchase” Green Cards.
Other critics have suggested that the program is a vehicle for investment fraud and money laundering. Indeed, in 2017, it was reported that Federal Agents in California were investigating an allegedly fraudulent investment project, which allegedly allowed EB-5 investors to recoup their investment funds, once the visa had been granted. Similarly, there have been multiple cases of EB-5 investors making investments in good faith, only for their funds to be misappropriated by rogue individuals for personal enrichment.
In recent years, there have been calls for Congress to reform the EB-5 visa program to reduce the incidence of such issues or abolish the program altogether. President Trump has indicated that his Government intends to radically overhaul US immigration law and it is feared that the EB-5 visa program may be a casualty of the reform. We will endeavour to keep you updated.
Davies Legal Immigration
At Davies Legal Immigration, we offer a “one stop shop” for all aspects of US business immigration. Our team comprises US immigration attorneys, a Master of Business Administration, a Doctor of Business and a Certified Public Accountant. We offer a variety of fixed fee packages tailored to your unique position and offer innovative immigration solutions. Call now to discuss your case with a licensed US immigration attorney and take the first steps towards achieving your own American Dream.
