EB5 Experts Expect Continuing Appeal for Chinese Investors

For international investors, visas granted under the EB5 immigration program are increasingly linked to types of investments favored by United States Citizenship and Immigration Services (USCIS).  USCIS tends to focus on issues of tenant occupancy, visitor spending, and job displacement. EB5 experts are increasingly able to steer investors toward investments that the USCIS is less likely to have questions about.

EB5 Applicants Prioritize Safe Investments

Regional Center officials from the U.S. are showing a trend toward promoting projects where EB5 investment is 50% or less and where the government either funds part of the project, or offers various credits. As for investors themselves, the priority is often on the safety of the investment rather than on a high rate of return on their investment. For many EB5 investors visas are a means for giving children access to U.S. higher education.

Demand by Chinese Investors Shows No Slowdown

Chinese nationals are continuing to show enthusiasm toward the EB5 program. Some immigration programs, specifically those in Canada and Australia, are less available to Chinese nationals. Experts on the EB5 program expect that the limit of 10,000 EB5 visas in a year will be reached for the first time in 2013. History shows that once a Chinese investor's I-526 form is approved, the I-829 form will generally be approved as well.

Korea, India Showing Increased Interest in EB5

The state of Vermont has been a leader in pursuing EB5 investment, specifically in the recreation sector and also in biotech. The city of Newport plans a major redevelopment effort, partly due to an expected influx of EB5 investors. Trips to Korea and India have been very positive for those promoting investment in projects in Vermont.

South and Central American Interest Grows As Well

While Chinese nationals make up the majority of EB5 investors visas are also going to increasing numbers of investors from India and various countries in Central and South America. Mexico is seeing increasing numbers of wealthy investors moving to the U.S. under the EB5 program, and this trend is expected to continue as more people want to bring their children to the U.S. to pursue higher education.

Examples of EB5 Green Card Program Investments

Up to 10,000 investors from countries worldwide participate in the EB5 green card immigration program, which allows people to invest in U.S. enterprises in order to receive a two-year conditional green card. Assuming all program requirements are met, these immigrants can have conditions removed from their green cards after two years, and after a further three years may pursue U.S. citizenship.

Investors from Iran

Since 2006, the country with the fifth greatest number of EB5 investors has been Iran. In 2011, Iran accounted for over 3% of the EB5 visas granted. Whenever an EB5 investor immigrates to the U.S., at least $500,000 is injected into a local economy. With the number of projects in which EB5 investors may participate growing steadily, enterprises are increasingly reaching out to Iranians as potential investors.

Investors from China

Around 70% of EB5 investors come from China. Representatives from U.S. EB5-eligible projects travel to China regularly to appeal to Chinese nationals interested in coming to the U.S. under the EB5 program. Two U.S. regions that have benefited greatly from EB5 investment from Chinese immigrants are the states of Vermont and Florida. An organic shrimp farm in the small Florida town of Fellsmere is appealing to Chinese EB5 immigrants as are resort and biotech projects in Vermont.

Investors from Ireland

Irish nationals sometimes choose EB5 investment as a way to retire in the U.S. or to send their children or stepchildren to U.S. colleges and universities. One reason the EB5 program appeals to older immigrants is that investors can choose their investment to suit the level of day-to-day involvement they want. Investors may be active and hands-on, or they may operate more as a silent partner and leave the hands-on operation to others.

Investors from Vietnam

Vietnam has experienced healthy economic growth over the past 20 years or so, and one result has been an increase in the number of wealthy Vietnamese. Increasing numbers of these Vietnamese nationalists are looking to the EB5 program in order to take advantage of entrepreneurial projects in the United States. Many of them also choose to move to the U.S. in order to educate children at U.S. colleges and universities.