Congress may overhaul the EB-5 immigrant-visa program that often benefits prosperous areas rather than the rural and impoverished urban ones for which it was created.
A bill introduced in June of 2015 by Senators Patrick Leahy, D-Vt., and Chuck Grassley, R-Iowa, aims to reform the program with key points as follows:
- Raise the minimum investment by an immigrant to $800,000 for targeted areas and $1.2 million for everywhere else.
- EB-5 regional centers, which pool capital from immigrant investors, would be subject to more scrutiny through background checks, site visits and audits.
- Administration fees must be sources.
- 7 years of tax return of investors is mandatory.
- Documents required showing Identity of Intermediaries.
- Gift can be made only by close family member.
- Loan must be secured by assets of the investor.
- Lending bank must be reputable or licensed lending institution.
A detail description of changes proposed in this bill can be reviewed here.
