The primary purposes of the EB-5 investment visa program, enacted into law by Congress in 1990, were to stimulate the U.S. economy and provide for a means of attracting additional foreign investments. In theory, and when the EB-5 program is used properly, the economic boost is evident through the specific requirements for job creation and capital investment.
Unfortunately, over the years unscrupulous real estate developers and other promoters have discovered and exploited loopholes in the EB-5 program, resulting in it not working as intended in some cases. While overall the program has been a success and achieved its stated goals, it is currently under attack due to suspected fraud, abuse, and national security concerns. As with any program, change is needed to keep up with current times. On and after February 11, 2016 proactive changes may come about as the result of an examination of the EB-5 program by the House Judiciary Committee.
At present, the EB-5 program has two main criteria that must be met for a given investment to potentially qualify for a visa. These requirements include specific details regarding anticipated job creation in a targeted geographic area and a minimum capital investment that must take place in conjunction with the granting of an EB-5 Visa.
EB-5 Job Creation Requirements
The United States Citizenship and Immigration Services (USCIS) defines job creation requirements. As outlined on the uscis.gov website, the EB-5 program should, “Create or preserve at least 10 full-time jobs for qualifying U.S. workers within two years (or under certain circumstances, within a reasonable time after the two-year period) of the immigrant investor’s admission to the United States as a Conditional Permanent Resident.”
Specific definitions and details are provided regarding job creation requirements, including those relating to troubled businesses, qualified employees, full-time employment, and job-sharing arrangements is further detailed.
EB-5 Capital Investment Requirements
The capital requirement for the EB-5 Program currently is a minimum of $500,000 to $1 million readily available to invest in the U.S. depending on the nature of the specific investment. The standard investment amount required for an EB-5 visa is $1 million. However, when the investment involves a targeted employment area (defined as either rural or an area with high unemployment), the minimum qualifying investment drops to $500,000. Investment capital must be shown to come from personal sources, and may not be borrowed.
The EB-5 Program is currently under a political microscope for suspected fraud and abuse. A recent press release put out by the House Judiciary Committee states: “Regional centers gerrymander targeted employment areas around poor areas in order to come in at a lower investment level that was intended to incentivize investments in rural and distressed urban areas, even when investing in luxury high-rises in affluent areas. Various agencies and government watchdogs have also identified national security concerns with this program, including economic espionage, use by foreign government agents and terrorists, and money laundering.”
Only time will tell what the future holds for the EB-5 program. At Brownstein & Nguyen, we keep a watchful eye on current events and reforms associated with immigration law. Our goal is to serve and educate clients to the best of our ability for all of their immigration needs. Contact us today for a consultation with the Atlanta immigration lawyers at Brownstein & Nguyen.
