Defining Reform—beyond Investment Hike and TEA
Without a doubt, the minimum of $1 million requirements and the TEA loophole should have been amended years ago. However, it is little to no attention present to make the EB-5 visa offer more advantage to the American Economy.
In April 2019, an H.R.2173 was introduced. This bill aims to reserve 100 EB-5 visas to investors who are setting up new commercial establishments in the areas, according to the President, that was hit by a major disaster.
This amendment aims to borrow efforts of St. Kitts and Nevis which is interesting as it offered discounts on citizenships by investment program to finance its Hurricane Relief Fund.
This offers a faster processing or route bypass through retrogression. This can go as far as gaining interests of the EB-5 investors, particularly in the disaster-struck areas. Chinese investors are facing decade-long processing times even though they are ready to invest more than $1 million to qualify for fast-track processing.
Aside from St. Kitts and Nevis’ aim to link disaster relief funds to investment immigration, EB-5 aims to borrow certain features of the following programs.
Reviving America’s Infrastructure Crisis thru Foreign Investments
Comparing to Australia’s Significant Investor Visa
The minimum investment requirement is AUD$5 million, and the investor should:
Invest at least 10% or $500,000 in Venture Capital and Growth Private Equity Funds, and have at least 30% or $1.5 million of funds invested in emerging companies.
Each SIV application should have an allocation of a minimum of $2 million to venture capital funds and emerging companies in Australia.
It does not specify whether to invest in new or existing companies, but the EB-5 program requires investors to invest either infrastructure projects or emerging technologies, particularly in the transportation and healthcare category.
Comparing to Portugal’s Program
The current proposal aims to allow Portugal investors with golden visa to become a permanent resident of the EU by merely investing in projects and ventures that are environment-friendly. Using the EB-5 program, the US government can give private investors incentive mainly if it contributes to more efficient green technologies.
Sure, job creation was priority 30 years ago, but the US government has expanded its approach. This includes a vast range of asset classes via the EB-5 program.
Ireland’s Endowments Options
Ireland’s Immigrant Investor Programme offers more choice by allowing applicants to invest in various asset classes, including philanthropic donations.
Moreover, this program has various minimum investment for each selected asset classes. The minimum investment ranges from €500,000 and up to €2 million for endowments and Real Estate Investment Trusts, respectively.
The expansion of the EB-5 program includes a variety of investment options – each has a set of requirements. This will help create additional value in terms of the US economy, aid investors in contributing to the economy of the US and create more demand under this highly regarded investment immigration program.