EB-5 Program Extension Is Set To Expire Tomorrow, But Will It?
The EB-5 Program extension is set to expire tomorrow on December 8, 2017. Here's why it will be extended.
Under the EB-5 Immigrant Investor Program, foreign entrepreneurs can attain U.S. green cards for themselves and their immediate family if they, invest $1 million or in some cases $500,000, in a U.S. commercial enterprise that creates or preserves jobs for U.S. workers.
Although the EB-5 Program extension is set to expire on December 8, Congress is certain (although not guaranteed) to extend the program again. These are the biggest reasons why the program will be extended:
1. The EB-5 Program stimulates the U.S. economy by pouring capital into new projects and creating jobs for qualified U.S. workers.
Since it's creation in 1990, the EB-5 Program has added billions of dollars in investor capital and it has created hundreds of thousands of full-time jobs for qualified U.S. workers.
2. Huge real estate project developments continue to turn to EB-5 investors for as much as 30% of their funding needs.
Large real estate development projects continue to use EB-5 capital to fund construction. EB-5 investment capital offers an attractive low-cost alternative to traditional banks and lenders. According to The Real Deal, One Vanderbilt, set to be a 1,401 foot building in New York City, next to Grand Central Terminal, is a large development that expressed interest in using EB-5 capital to help fund construction.
3. While the number of investors from Mainland China wanes, the number of investors from India, South America, and the middle east grows rapidly.
Due to the visa backlog, the number of applicants from Mainland China continues to decrease slowly over the last few years. EB-5 investors from China, still, however, make up nearly 80% of investors. With awareness of the program increasing globally, investors from other parts of the world are quickly taking advantage of this visa.
4. There are issues with other visa categories.
Indian nationals who are worried about the H1-B visa are turning to the EB-5 Program for a more secure path to U.S. citizenship. Other foreigners are worried about the elimination of lottery-based visa categories and chain-immigration.
5. In Congress there's more talk of reforming rather than eliminating the EB-5 Program.
Members of Congress are mostly concerned about EB-5 fraud. Increased federal oversight of regional centers, changes to targeted employment designation, and other significant reforms are more popular than complete program elimination.
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