EB-5 Visa

For the first time in its history, the EB-5 Investor visa hit its cap. Given a cap of 10,000 visas per year (starting October 1), the visa reached its ceiling on August 23, 2014. The Department of State issued a notice to signal that the category was unavailable to Chinese nationals until the new fiscal year. However, on September 9, the October Visa Bulletin showed that the category was “current” for China.

EB-5 Visa Requirements

Credit: @blmurch – Flickr

The EB-5 visa requires a one million dollar investment that creates or preserves at least ten jobs for United States workers ($500,000 in “Targeted Employment Area”) from a foreign national. The visa has been available for 20 years, but its popularity has soared in the past six years, following the economic crisis in 2008. 75% of all EB-5 visas have been issued in the past six years, and that percentage looks primed to jump higher with each successive year breaking the previous year’s mark.

EB-5 Visa Proves to be Beneficial

The benefits from the capital invested through the EB-5 visa program are apparent in Pittsburgh. Bakery Square, a renovation project in East Liberty and Shadyside, was built primarily through the efforts of EB-5 investors. 70 investors contributed $35 million into the project. The infusion of capital makes the program attractive to the United States. The program is particularly attractive to investors from countries such as China because they are unable to obtain the E-1 Treaty Trader Visa and E-2 Treaty Investor Visa, which requires that an appropriate commerce treaty with the United States.

The EB-5 visa has been criticized for being a thinly veiled money for visa transaction, but its popularity and benefits are apparent. The recent surging growth of the EB-5 visa should portend prosperously for the United States and local communities. Perhaps next fiscal year, the limit will be reached even earlier and more countries will be pushing the limit.