Immigrants to US: EB-5 set to get very expensive

The US investment immigration landscape is on the verge of a potentially seismic shift. Recent pronouncements regarding a new ‘ gold card’ visa have sent ripples through the EB-5 Immigrant Investor Program community and beyond, signalling a move towards a dramatically different model for attracting foreign capital. For years, the EB-5 program has offered a pathway to the US residency in exchange for significant investment and job creation. Now, a proposal centred on a far higher financial threshold may redefine who can access this route to American life.

Launched in 1990 to stimulate the US economy, the EB-5 program offers foreign investors and their immediate families a direct path to permanent residency, provided they invest in a qualifying US enterprise and create at least 10 jobs. The investment threshold has evolved over time. Initially set at at $5,00,000 for targeted employment areas, it rose to to $9,00,000 in 2019, and was later revised in 2022 to $8,00,000 under the EB-5 Reform and Integrity Act.

What’s the ‘gold card’?
The proposed gold card presents a stark contrast. The headline figure is a $5 million investment requirement, which is a manifold increase over the standard EB-5 threshold. While details remain fluid, the core premise is to attract ultra-high net-worth individuals willing to inject substantial capital into the US economy. Proponents suggest that this influx could generate significant revenue and potentially contribute to reducing the national debt.

Despite the rising capital requirement of the EB-5 program over the years, the demand is not cooling off. Indian professionals and HNIs are seeing it less as a visa and more as a global wealth strategy. EB-5 has become a secular solution for a wide spectrum of Indian clients, including students, professionals and business families.

Once seen as an expensive shortcut, the EB-5 investor visa is being reimagined by a new generation of Indian parents, professionals and HNIs. It’s no longer just about migration It’s about control, wealth preservation, and growth across borders, currencies and generations.

This shift is driven by several factors, including job security that many H-1B professionals have at the top of their mind. The alignment of EB-5 with global portfolio diversification, particularly for those who are already investing in overseas education or dollar-based assets, is an added advantage.

The green card also provides valuable exposure to the US markets, including real estate, capital markets, and business opportunities. Furthermore, families are leveraging the liberalised remittance scheme (LRS) for more prudent EB-5 participation. In today’s geopolitical climate, second residency is increasingly seen as essential family insurance, making EB-5 an attractive option for alternative residency planning.

The differences between the two models are significant. The investment amount is the most obvious disparity, potentially pricing out a large segment of individuals who might have considered the EB-5 program. In fact, one of the lesser known developments is the rise of structured financing for EB-5 investments, helping a broader range of financially qualified individuals to apply for the program.

The emphasis on job creation, a cornerstone of EB-5, appears to be absent in the initial outline of the gold card. There’s also speculation that the gold card could offer a faster processing period or even a more direct route to citizenship, advantages not typically associated with the EB-5 program, which often involves significant waiting periods due to visa backlogs.

Looming uncertainty
The suggestion that the gold card is being intended to replace the existing EB-5 program has understandably caused considerable unease within the industry. Developers and regional centres, which facilitate many EB-5 investments, are grappling with the potential implications of a system that could drastically shrink the pool of eligible investors. The existing EB-5 investors, many of whom are in a lengthy processing queue, are also watching nervously, wondering how this new initiative might affect their journey.
For the potential EB-5 investors who were on the fence, lack of clarity has forced them to finally commit. At EduFund, we’ve seen a three times surge in EB-5 applications in the last quarter across many types of applications. The motivations vary widely:

• F-1 students looking to avoid the visa roulette after graduation.
• H-1B professionals seeking stability for their families.
• Business owners and NRIs using EB-5 as part of a long-term financial strategy. Different people. Different entry points. One goal—to future-proof their place in the US story.

The road ahead for the US investment immigration remains uncertain. Several scenarios are possible. The gold card could gain traction and ultimately replace the EB-5 program, ushering in an era focused on attracting ultrahigh net-worth individuals. Alternatively, both the programs could coexist, catering to different tiers of investors. What remains explicitly clear, however, is that the American dream is still very much alive for Indians.

The Author is CO-FOUNDER, EDUFUND


(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com)