EB-5 program to be drastically revised

The Trump administration is revamping the Green Card program for wealthy foreign investors that benefited developers such as Trump and his son-in-law, Jared Kushner. A new final rule, effective Nov. 21 will nearly double the minimum amount of cash required to secure an EB-5 investor visa from $500,000 to $900,000 for projects in needy areas. It will also revise the standards for what is considered a blighted or high-unemployment neighborhood, to prevent developers from “gerrymandering” their own boundaries to attract investments for projects located in affluent communities.

The standard investment threshold for projects in non-needy areas will increase from $1 million to $1.8 million. The amount will automatically adjust for inflation every five years. From here.

The EB-5 program was created in 1990 to encourage investment in economically distressed areas. Foreigners only really started using it in 2008, when turmoil in American capital markets caused real estate developers to scramble for other ways to raise money. It now generates more than $5 billion a year, in exchange for nearly 10,000 green cards — a number that is capped by statute. Chinese applicants take up almost all of the 10,000 spots. From here.

 

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