The EB-5 Visa program, a creation of the U.S. Congress in 1990, is set to undergo a notable transformation involving an increased minimum required investment amount. Specifically designed to stimulate the U.S. economy by encouraging job creation and capital investment from foreign investors, the visa program has been overseen by the United States Citizenship and Immigration Services (USCIS). Recently, USCIS announced that the Targeted Employment Areas (TEAs), which are focal points for investment under the visa program, will experience an 80% increase in necessary investment amounts. As of November 21, 2019, foreign investors will need to invest a minimum of $900,000 or ₹6.2 crore, up from the previous level of $500,000 or ₹3.5 crore. This fee restructuring signifies the first change of its kind since the beginning of the program.
The EB-5 Option: A Popular Pathway for Indian Professionals and Families
Over the past three decades, multiple segments of India’s society have explored and utilised the benefits of the EB-5 visa. High net-worth professionals, students, entrepreneurs, and families have found it to be an efficient means to secure a green card and permanent residency in the U.S. The simplicity and ease of the process have made it an obvious choice for immigration.
Implications for Indian Applicants Following New Policy Changes
With stricter norms now imposed on H1-B visas and the rise in minimum investment amount for the EB-5, Indian applicants may find their immigration options somewhat limited. However, as the predominant reason for Indians opting for the EB-5 visa is to secure improved educational and career opportunities for their children, this altered policy may not drastically impact their decision.
EB-5 Visa Investments: A Reflection of Current Trends
| Year | Minimum Investment Required |
|---|---|
| 1990-2019 | $500,000 |
| 2019 Onwards | $900,000 |
Rising Minimum Investment and Retrogression Dampen Prospects
The increased minimum investment requirement for the EB-5 visa coupled with retrogression caused by oversubscription of employment-based green cards like EB2, EB3 and EB5 could have a negative impact on Indian applicants. These changes may dissuade not just Indians residing in India, but also those presently living in the U.S. under the H1B visa.
Despite these alterations, the EB-5 will continue to attract ultra high net-worth individuals (HNIs) as it still remains the quickest route towards obtaining a U.S. green card.
