Immigrant Investor Legislation Introduced

By Ashley Gunn

In June, legislation was introduced by Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Ranking Member Patrick Leahy (D-Vt.) that would reauthorize and reform the 20-year old Immigrant Investor Program known as “EB-5,” which will expire on September 30, 2015. As background, the program provides visas for foreign nationals who meet criteria for investing a minimum amount of capital in the U.S. economy and create a set number of jobs. The EB-5 is primarily used to boost job creation, economic development and investment in areas that are blighted, rural or suffer from high employment. Developers use this program as a way to secure additional funding for projects.

The minimum investment amount to qualify for the program and obtain the desired visa is $500,000 in a “targeted employment area” (TEA) and $1 million for projects in a non-TEA. The proposed legislation redefines the criteria to qualify as a TEA, which would have significant impact on a developer’s ability to access EB-5 money and would raise the minimum investment to $800,000 for TEA projects and $1.2 million for non-TEA projects. Most believe that raising the investment amount will not likely affect the program’s feasibility. Please click here to view an article with more information.


About Author

Ashley Gunn

Ashley Gunn is a senior banking analyst at ABA, where she covers mortgage lending and commercial real estate.