Wednesday, November 2, 2016

EB5 Could See Investment Thresholds Rise

The United States EB5 program could potentially see a rise in its investment thresholds, especially now that there has been new legislation introduced in the US House of Representatives. 

This is important news for anyone who is involved in EB 5 extension, such as Hirson Immigration attorneys and experts who are involved in business and investment immigration law. Continue reading to learn more about this rise in investment thresholds. 

The American Job Creation & Investment Promotion Reform Act

The well known American Job Creation and Investment Promotion Reform Act has now called for a variety of changes to be pushed through into law. 

These changes include raising the current threshold all the way to $800,000 or even $1.2 million. The actual amount that it will be raised to will depend upon the class of the investment.

The current thresholds are only $500,000 for investments that are made in targeted employment areas or in regional centers. 

The threshold, however, is up to $1 million for those investments made in general areas of business. 

In return for these valuable investments, the program will grant conditional permanent residence to immigrants who can provide a minimum of 10 newly created jobs to citizens living in the country. 

The Problems Involved with EB5

Currently, EB5 is quite controversial throughout the United States, particularly because there have been quite a few cases of fraud that have been linked with the investments that have been made under this program. 

Therefore, this new legislation would also be aimed at calling for a few new ways to combat that fraud.

Additional power would be given to the United States Department of Homeland Security, also known as DHS. The DHS would be able to deny any applications that have been linked to crime, including fraud. 

On top of that, the DHS would be able to conduct audits, and they would be able to investigate fraud and conduct important background checks on individuals working on projects.

Finally, there would be vetting for projects prior to any money changing hands. Conflicts of interest and risks would also need to be disclosed to any investors prior to striking any deal. 

The Benefits of the EB5 Program

Despite having its flaws, the EB5 program has also done some great things throughout the country, so there are many people who support the investment threshold rising. 

In 2015, for example, this visa was able to generate roughly $5 billion in investments, and those investments have helped to regenerate some of the country’s largest cities. An example is downtown Dallas, which was rebuilt with the help of EB5 funds. 

Therefore, there are many lawmakers who support the expansion and extension of the program. They want to continue seeing urban areas in America benefit from the billions of dollars that are invested in those areas by immigrants.

Overall, the idea seems to be to raise the threshold while providing more protection against fraud, and it seems that a lot of immigrants and citizens are looking forward to the new investments that can be made throughout the country in order to generate new businesses and job opportunities.

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