COMMENTARY | The EB-5 program was created back in 90s but has not garnered much attention. The program allocates 10,000 visas per year for foreigners and their family members who effectively create or preserve at least ten full-time jobs for U.S. workers. With the national unemployment rate hitting 9.1 percent in Sept. 2011, and the economy not showing real signs of improvement, American business owners are reluctant to invest in more employees.
Project developers are supportive of the EB-5 visa program specifically to bring investors into designated areas of high unemployment or other qualifying rural areas. The investor needs to have at least one million US dollars to invest, or a minimum of $500,000 if located in one of the designated rural areas. Then if all the stipulations are met within two years, the investor qualifies for legal status and can bring their spouse and dependent children to the States.
Backers of this program say it is a better way to get this country the support it needs without taking out risky loans. The investors bring their capital, create jobs and since the program ultimately attracts highly educated immigrants who they say will only add value to the country. In fact since its inception, the EB-5 program has brought in about $1.5 billion in investment, according to the U.S. Citizenship and Immigration Services.
Detractors of the EB-5 visa for Immigrant Investors say it is a way for foreign investors to buy their way into the country. Worried about scams, and putting a price on citizenship, many are concerned about the direction the EB-5 visa could take the country. With this program wealthy investors move to the front of the immigration line, which detractors say is an unfair way to handle this situation.
America’s crippling recession coupled with this handy program is attracting many foreign investors from China and South Korea. The growing interest in this program makes me wary about possible underlying motives. Outsourcing job creation does seem to be a wise move in my opinion. While I agree something needs to be done about the economy, I strongly believe putting a price on American citizenship is a dangerous gamble.