Investment thresholds for the EB-5 US visa program could be raised, following the introduction of new legislation in the House of Representatives yesterday. The American Job Creation and Investment Promotion Reform Act calls for a range of changes. These changes include raising the threshold to as much as $800,000, or even to $1.2 million, depending on the nature of the investment.
Current thresholds are $500,000 when investing in targeted employment or rural areas, and $1 million for more general business areas. The program gives conditional permanent residence for any overseas immigrant investing the requested amount if at least ten jobs are created as a result of the investment. The EB-5 US visa program has generated controversy in the US because of the discovery of several fraudulent cases connected to investments.
In addition to seeing the threshold increased, the new legislation would also create a series of new powers intended to combat fraud. These include allowing the US Department of Homeland Security to have more power to deny applications linked to fraud and other forms of criminal activity.
The Department would also be empowered to investigate fraud and conduct audits with the use of regional center fees and to have background checks conducted on the individuals involved in the projects. Extra powers could include vetting projects before any money changes hands and ensuring that investors have been informed about any conflicts of interest and risks before deals are signed.
