I know Trump makes for a great opening line in any blog, so I will start with Trump. Trump criticized Mr. Khan, the Gold Star parent by saying that Khan, a lawyer took money from Muslims so that they could buy their citizenship. What he was referring to is the EB-5 investor visa program which is controversial. But before I go into any details, let me say that Trump used EB-5 foreign money to build his luxury rental apartments in New Jersey called Trump Bay Towers.
The EB-5 is a program where investors can invest 1 million USD (or $500,000 in underdeveloped areas) and create at least 10 jobs.
The funds have to be obtained “lawfully” and USCIS traces the source of the funds meticulously. If for instance, one inherits a property and sells it to obtain funds, the Citizenship and Immigration Service will demand that one traces the source of funds used by the buyer to buy the property. This requirement is very strict
The investors have to put the funds “at risk”. That means that the investor has to invest the money into a for profit, new venture. Very often, people invest in “regional Centers”—- businesses which pool a lot of these investment and build a new project. However they create very little interest, and the money is tied up for about 10 years. The interest is not enough to be able to live in the US
Over the years investors in this program have invested billions of dollars and have created thousands of jobs. So why is this program criticized? . The problem with this program is not what Mr. Trump thinks, Muslims bringing in illegal money.
The problem is China. 90% of the individuals and capital come from China. At first it would seem that China sells so much goods to us, that it is wonderful for them to invest capital in the US. But PRC is not a free country, and that’s the problem. Ordinarily PRC does not allow money to be brought outside the country. However, it turns a blind eye to the EB-5 program. The investors do not directly find investment opportunities in the USA. China has state run brokers who liaise with owners of Regional Centers in the US. So these state run brokerage have access to how real estate is done in the US. They also have access to computer files. They also can invest and control flow of capital in strategic areas. Some have criticized that China is using economic, information and technological “warfare” with us through this EB-5 program.
The program expires on September 30th, 2016. But my guess is that this Congress will simply extend the program for one year, and let this be the problem of the new administration.
For more information, contact Houston Immigration Lawyer, Annie Banerjee
The post Buying the American Dream—The EB-5 visa first appeared on SEONewsWire.net.]]>The EB-5 visa provides lawful permanent resident (LPR) status to foreign nationals who invest $1 million in the United States, or half that amount in a Targeted Employment Area, and who employ at least 10 U.S. workers. The investment can be made directly or through specially set up and approved Regional Centers which create EB-5 projects in which indirectly created employment can count toward the creation of 10 U.S. Worker jobs.
The CRS report outlines the EB-5 policy issues that are currently under debate in Congress. The report points out that while proponents argue that the U.S. economy benefits from the investments that the program brings, critics contend that the program allows people to buy their way into the United States. According to the report, many EB-5 stakeholders are concerned about delays in processing EB-5 applications, and some question whether U.S. Citizenship and Immigration Services (USCIS) has the expertise to administer the embedded business components of the program. Others contend that the EB-5 program is susceptible to fraud and threats to national security, as evidenced by the recent, massive fraud allegations against the EB-5 Regional Center at the Jay Peak Resort in Vermont.
The Congressional debate over EB-5 visas will continue ahead of the scheduled September 30, 2016 program expiration. Whether major changes will occur in a Presidential election year remain to be seen.
The post CRS issues a report on the EB-5 program in advance of congressional debate first appeared on SEONewsWire.net.]]>HR 156 bars visa waiver country citizens from using the vis waiver program if they have traveled to Iraq or Syria within the last 5 years.
In the EB-5 area, there are 5 different, proposed legislative changes to the program which address many components of the EB-5 program, including increases in the minimum investment amount, making the program permanent, changing job creation methodology, changing TEA designations and definitions, and addressing means to reduce and identify fraud in Regional Centers and regional center projects.
Stay tuned for an update for news about Congressional decisions on these issues.
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