The EB-5 program, which is one of the most popular residency programs, issues green cards to investors who invest in projects in high unemployment or a rural areas and in such create at least 10 full- jobs. The Department of Homeland Security proposed increasing the minimum investment amount required for the EB-5 program to $1.35 a whopping 80% increase from its original $500,000.
Begs to question if the program will continue to gain popularity with such an increase in cost?
In a recent Forbes article written by Ellen Sheng, she mentions, “It’s unclear what will happen in April when the EB-5 program is up for renewal again. With the Trump administration dealing with so many other issues at the moment, it seems likely EB-5 reform will fall by the wayside again.”
“There’s been a specter of reform in the background for so long, it’s been tough to have certainty about how the program will function. Will projects that qualify under the current program be grandfathered in? No one knows. Everybody believes there will be some reform but no one knows what it will look like,” said Michael Gibson, a partner at Bass, Berry & Sims in Washington, D.C.
“The [Trump] administration has a lot on its hands and I don’t know where EB-5 falls on its list of priorities but it’s an immigration-based program that has significant economic proponent – it’s investment and infrastructure in the U.S,” said Gibson.