Over the years the EB-5 immigrant investor program has continuously proven to be a pivotal contribution to the development of the U.S. economy and labor market. The prospective investors must invest $900,000 into an approved commercial project in return for U.S residency and green card for themselves and their immediate family members. The program thus holistically benefits both the foreign nationals that are interested in relocating and the U.S. However, June 30, 2021 is set as the sunset date for the program, which means that if Congress fails to renew the program on or before that date then the program will expire. The looming deadline has caused great concern for all prospective investors interested and the real question is whether they have anything to be concerned about?
In the past the program was under the U.S. government omnibus spending bill which allowed it to be automatically renewed, however, the Trump administration decoupled the program from the bill. Which meant that going forward the program would require independent holistic review prior to obtaining renewal. While we cannot be absolutely certain that the program will be extended we can use previous trends to try and ascertain whether Congress will renew the program or not.
Since the program’s inception in 1990, it has successfully injected billions of dollars into the U.S. economy, by allowing foreign nationals to obtain U.S. green cards, the program has further opened the doors for new business avenues set up by the applicants that relocate to the United States. In addition to the required $900,000 investment, the creation of 10 jobs for U.S. persons proves to be an even greater reason for the renewal of the program.
In comparison with other national investment visa programs such as the U.K golden visa the it is noticeable that these programs are often retained and allowed to grow as per inflation rather than being removed as an offering. Additionally, with the world economies recovering from the effects of the COVID-19 pandemic the EB-5 program will assist in the decrease of the rising unemployment rate and increase the U.S. economy without infringing on taxpayers money.
Should prospective investors worry about the renewal?
Congress has let the program expire once in December 2018, however it was quickly reinstated by January 2019. As such prospective investors do have reason to reserve some concern. However, using the same example the mere fact that the program was renewed within a month of its expiration date is a clear indication of how important the program is to Congress and by extension the U.S. Additionally, Joe Biden has proven to be for the implementation of immigration policies that are better for foreign nationals, policies that continue to open the doors for foreign nationals into the U.S. Therefore the renewal of the program seems to be a more likely decision by Congress.