Spotlight on the EB-5 Program: History
The EB-5 investor visa program has been a success for both investors and the US economy. Investors now can live in and build their portfolios in the US, and the US economy benefits through job creation, particularly in areas challenged by high unemployment. At American Life, Incorporated, we are thrilled to be a part of this important program as an approved Regional Center. Today, we’ll talk about how this effective and valuable program has evolved.
In 1990, an immigration reform law called the United States Congress’ Immigration Act of 1990 included provisions for the EB-5 program, along with several other programs and regulations. The EB-5 was intended to stimulate the US economy, bringing in foreign investors to inject more capital into the system and create new jobs.
In the late 1990s, the program was overhauled to tighten enforcement of the program. Some of the regulations were eliminated on appeal, but some changes remained, including qualifications for funding sources as well as which businesses can receive an EB-5 investment, and some administrative regulations.
Because participation had dropped following the previous regulation changes, new processes were put in place in the early 2000s to make the program more accessible, including the creation of a special unit to oversee the program, its investors, and its Regional Centers in 2005. New policy guidance was issued in 2009 that centralized processing in a facility in California.
Because of the program’s success, it continues to be reauthorized by Congress.
New changes are coming on November 21, 2019 that increase the minimum investment required, revise standards for TEAs (Targeted Employment Areas, or areas with high unemployment for which a lower investment is required), and clarify some rules and procedures. Currently, the minimum investment is $500,000 for TEAs or $1 million for other areas. Beginning November 21, the minimum investment will be $900,000 for TEAs or $1.8 million for other areas.
The EB-5 investor program continues to be a success, creating jobs for US workers and giving foreign investors a unique opportunity to live and invest here in the US. If you’re interested in the program, contact American Life, Incorporated today. Our investment professionals will help answer all your questions about the EB-5 program, as well as help you choose the best investment opportunity for your portfolio. Contact us online, call us at 206-381-1690, or visit US office at 2710 S. Hanford Street, Suite 100, in Seattle, Washington or any of our international offices in Shanghai, Tokyo, or London.