Reprieve for controversial US immigration visa programme fails to ease investors’ woes
- Prospects for programme known as EB-5 are grim as a stringent new rule with a higher investment threshold could dry up applications
- Rule change also redefines areas designated for funding to avoid abuse and fraud
The US government extended a controversial US investor visa programme once popular among mainland Chinese, but financial professionals steeped in the programme say it could still face tough times as an overhaul to raise the investment minimum could shut out applicants.
Known as EB-5, the programme grants permanent resident status to foreigners who invest at least US$500,000 and create at least 10 American jobs in economically struggling parts of the US.
The programme, which was set to expire on Monday, received a temporary extension when US President Donald Trump signed a “continuing resolution” on Friday that allowed Congress to fund the government and renew the visa programme through November 21.
On that day, when the programme is expected to be extended further, the minimum threshold for the visa applicants would increase under a long-anticipated new rule made final by United States Citizenship and Immigration Services (USCIS).
The new investment amount will increase to US$900,000 from US$500,000 and the designation of struggling areas will be redefined. For projects outside high-unemployment areas, the amount will jump to US$1.8 million from US$1 million.
Despite the programme’s short-term reprieve, industry professionals remain sceptical about its chances for long-term success.