EB-5 Visa | 25 Jul 2019

The U.S. is all set to increase the investment amount under EB-5 Visa. The minimum amount required to be invested in the Targeted Employment Areas (TEAs) in the U.S. will now go up to $9,00,000 (₹6.2 crore), an 80% hike from the existing $5,00,000 (₹3.5 crore).

  • United States Citizenship and Immigration Services (USCIS) administers the EB-5 program, created by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors.
  • The new EB-5 fee structure, the first such move since the inception of the programme in 1990, will come into effect from November 21, 2019.
  • Several high networth professionals, students, entrepreneurs and families in India have been exploring EB-5 in the last three decades as it is the easiest channel to get a green card and permanent residency in the U.S.

Implication for India

  • With stricter norms on H1-B visa and now the hike in investment amount, immigration options have really reduced for Indian applicants.
  • However,considering most Indians opt for the EB-5 visa with an eye on better educational and career prospects for their children, the hike is unlikely to cause Indians to explore alternative options.
  • Rise of minimum investment amount in EB5 coupled with retrogression caused by over subscription of employment-based green cards such as EB2, EB3 and EB5 would dampen the spirit of not only Indians living in India but also Indians living in the United States on H1B visa.
  • EB-5 will still remain an option for the ultra HNIs (high networth individuals) because it remains the fastest way of getting a green card.

Source: The Hindu