Every few years governments review their national immigration programs to determine whether the program is still aligned with their set out objects. In most cases the government responds by increasing the program investment requirement in an effort to keep up with the rising inflation rate and demand. This can be evidenced by looking at the United Kingdom’s golden visa. However, the EB-5 program was at $500,000 for almost three decades and regardless of the increase in demand and rising inflation rate the program remained at $500,000, up until November 2019 where the program briefly operated under the new rules requiring $900,000 capital investment.
On 22 June 2021 the monumental Behring case verdict allowed for the dramatic decrease in the investment threshold for the United States golden visa, namely EB-5. The case ruling allows a foreign investor to invest $500,000 as opposed to $900,000 . However, looking at the primary objectives of Congress when the EB-5 program was initially established in 1990, Congress stated that the program must be kept within the inflation rate for it to be a truly viable contribution to the United States economy. Under the $900,000 rules the program maintains its primary objective and is in line with the current inflation rate, yet too expensive and unreachable for the middle class families, and as such fails to provide the economic investment injection it was designed to achieve.
So what is the solution?
As the top EB-5 consultants in the Middle East with the highest number of EB-5 filings, I can provide some insights. I can attest to the fact the program fails to perform successfully under the $900,000 capital requirements rule. While the demand for the program can be ascertained, it is the affordability that becomes an issue for prospective investors. The EB-5 immigrant investor program is a pivotal tool for the United States labour market and economy. According to statistics provided by Invest in USA, between 2008 and 2015 the EB-5 Regional Center program, under the $500,000 rules, injected $20,6 billion dollars in foriegn direct investment.. This is a clear indication that the program works and there is a demand for it. Therefore the government ought to maintain the program at $500,000 for a few more years and allow people to truly recover from the dilapidating financial effects of the pandemic before reintroducing the $900,000 investment capital requirement.
I, along with various industry leaders believe that the program will be reinstated by September 30th, 2021. There may be a chance that the program will be reauthorized prior to September 30th, however unrealistic as Congress tends to prioritize other issues that pertain to battling the pandemic or refugees immigrants stuck between borders. Where it will be once again coupled with the Omnibus Spending Bill and would thus prevent the requirement of future reauthorization. Once reauthorized, investors will once again have a short window of opportunity to file petitions under the current $500,000 rules before United States Citizenship and Immigration Services make their final decision on the required capital investment going forward.
Securing your application under the $500,000 rule.
Prospective investors must utilize this opportunity to collect their documents, and conduct their due diligence on the projects available. Once the program is reauthorized there will still be a short window for investors to submit their petitions, however only the investors that have their documents ready will be able to capture the $500,000 opportunity. Contact the American Legal Center today to obtain a free consultation with a U.S. licensed lawyer and find out what the next steps are to ensure your application is ready for immediate filing.
Benefits EB-5 Program
The EB-5 program is primarily suitable for families that are looking to relocate to the United States to access better resources and opportunities. It is a multigenerational investment that seeks to improve the lives of all people involved. Under the program, investors can obtain U.S. Green Card and residency for themselves, spouse and children under the age of 21. After completion of the program and they have their permanent Green Cards and passports, they are able to apply for various other family petitions to sponsor other family members.
Contributed by the American Legal Center www.america.ae