In the middle of the budget wars which are currently raging in the Congress, and the wars of immigration raging on the trail for presidential campaign, one issue is most important that will overlap both the fronts, about the EB-5 program, the government program which offers visas to international investors.
Much of the attention has been devoted to perceive the shortcomings of the methodology for demonstrating that the EB-5 project is located in the ‘Targeted Employment Area’. Congress has to devise the solution for the proposed legislative changes to the EB-5 program.
The resolution to extend the program which is going to expire on 11th Dec. The rural areas which have not benefited by the program during these years are battling. And urban areas, gateway cities where much of the EB-5 money has been channeled.
If the immigrant is investing in the real estate project which is located in the ‘Targeted Employment Area’ (TEA), the lowest investment would be $5,00,000 rather than the $1 million. As the program secures the visa and the green card irrespective of the amount, investors generally received the interest of less than 1% each year that is why they prefer to invest in the ‘Targeted Employment Area’.
This EB-5 program is defining the TEA including the rural and high unemployment areas. The USCISA that administers all aspects of the immigration program, gives the authority to individual states for certifying whether the project is located in the TEA or not.
In the recent times, around 85% of the immigrant investors in the EB-5 projects have came from China and India. The migration agents and the investors prefer large projects in the cities such as Los Angeles, New York and San Francisco especially developed by the mega developers. As they believe that these projects are safe and are likely get completed. Thus, creating the jobs required to support the visa application and resulting in return of their capital investment safely.
