The EB-5 is a business immigration program created by the Congress in 1990 to stimulate the U.S. economy by attracting foreign capital investment and creating jobs for American workers. The program is intended for entrepreneurs, business leaders, retirees, and others.
“The Distortion of EB-5 Targeted Employment Areas: Time to End the Abuse” was a hearing held by the senate judiciary committee on the 13th of April 2016 to discuss the EB-5 program, focusing mainly on Targeted Employment Areas. The main concern that was repeatedly raised about the EB-5 immigration program was the idea of the Targeted Employment Areas (TEA’s) which requires making a minimum investment of US$500,000. The hearing was held to discuss these matters as some are concerned that this business immigration program is not serving the purpose it was launched for, which is to boost the economy of USA. Initially, the EB-5 program was formed by the U.S. government to improve the economy and at the same time help High Net Worth individuals and investors seeking immigration to the USA.
The senate judiciary committee focused on ensuring that the issues discussed would be about reformation of the EB-5 Immigrant Investor program rather than holding talks about suspending the program.
Some of the main improvements suggested for the EB-5 program in order for it not to be called off were:
- Reforming criteria for Targeted Employment Areas (TEA’s) for priority urban and rural areas.
- Working on gaining investment not just for commercial estate programs.
- Ideas for new projects focused on rural areas.
- Re-evaluating whether immigrant Investors should be informed about the jobs created, even if they form only a part of the investment.
This U.S. immigration program expired on September 30th 2015 and extended to September 30th 2016, which is good news for investors interested in obtaining their green card and enjoying U.S. permanent residency.
For more information on the EB-5 immigrant investor program, click here.
To check your eligibility for this program, please fill our FREE assessment.