
Senator Patrick Leahy wants to raise the investment level required for an EB-5 visa
The EB-5 program, a US government investor visa initiative that has been overwhelmed by demand from Chinese investors, is due to expire this month, unless Congress decides to renew it.
While re-approval for the dollars for visa scheme appears likely, new legislation proposed by Senators Charles Grassley and Patrick Leahy could raise the minimum investment required to earn a visa by 60 percent as well as placing tougher restrictions on what locations qualify for EB-5 investments.
To explore what’s in store for America’s investor visa program, Mingtiandi’s Michael Cole will be leading a panel discussion with five EB-5 professionals in Shanghai today, to find out more about what the new legislation may look like, and how it may affect potential investors from China, and major real estate projects in the United States.
Joining the Mingtiandi analyst in the discussion will be Nicholas Mastroianni II, of EB-5 finance organisation the US Immigration Fund; Kate Kalmykov, of law firm Greenberg Traurig; Ron Klein, of law firm Holland & Knight; Clem Turner, an attorney with Homeier & Law; and Vivian Ding, of investment and immigration brokerage GDOS. The discussion is part of the US Real Estate Showcase & Forum in Shanghai organised by US real estate website the Real Deal.
Designed to give wealthy potential immigrants a fast track to US residency by investing in projects that generate jobs in America, the EB-5 program has become a favorite of real estate developers looking for affordable financing. US developer Related is in the process of raising $1.2 billion in EB-5 funds to help build its Hudson Yards project in New York, and many other property firms have used the low-interest financing to give smaller projects a boost.
Under the current terms of the EB-5 program, investors who provide financing for areas of low employment can qualify for a visa through EB-5 in return for a $500 million investment, whereas investors who join projects outside of such areas must commit at least $1 million. Under the terms of the Grassley-Leahy bill, the minimum investment levels could rise to $800 million in targetted employment areas, and $1.2 million in other locations.
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