The EB-5 immigrant investor program, popular green card route for Chinese rich investors, may pose tough time for potential investors from the world's second largest economy if the changes under consideration come into force. The US government grants permanent residency to foreigners who invest $500,000 in the US economy creating employment opportunities.
The US government is receiving mixed reaction to the permanent residency program EB-5. A number of reform proposals have been put forth for Congress debate. The EB-5 program is likely to be more expensive after the new changes take place. The higher investment level will pose a hurdle for rich Chinese investors owing to capital controls in the dragon country.
As part of the existing rules, foreign investors need to invest $500,000 or $1million depending upon the project to get EB-5. Foreign investors need to prove that these investments helped in creating more jobs. Now, one of the proposals before legislation is to increase this investment level to $800,000 or $1.2mn. However, the job creation clause remains the same.
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