This week was a bit controversial for the commercial real estate sector, as it was reported that the sister of Jared Kushner, Donald Trump’s advisor, had pushed the EB 5 visa program in China. Recently, the Kushner family has backed out of fundraising tour in China due to the same controversy.
Here we discuss all the important aspects you should know about this program.
How EB-5 program works?
A foreign investor becomes eligible for permanent residency in the US if he or she invests a minimum of one million dollars through a business venture or contributes a minimum of 500,000 dollars if the project is executed in a rural or highly unemployed region.
Popularity of the visa
The visa program was incepted in 1990 but was hardly utilized until 2008. It was during this phase that the investors from developing countries started showing an interest in the US market.
Maximum visas per year
As per the US Citizenship and Immigration Services agency, cialisfrance24.com not more than 10,000 visas can be authorized every year.
Why are Chinese citizens attracted to this program?
There is not just a single reason that attracts Chinese citizens towards this program. A lot of wealthy individuals are afraid of the unpredictability of Communist dictatorship in China, due to which they are shifting to a secure region. A lot of Chinese citizens are also motivated due to the financial crisis in the country. Numerous investors are magnetized towards better educational opportunities for their children, while some are just looking to tap the potential of the promising market.
Investors from other countries
Though a majority of investments (about 80 percent) are from China, investors from other developing nations like Vietnam, South Korea, India, and Taiwan have also shown interest in this visa program.
Why is the program associated with controversies?
The program has faced controversies because of its association with some major fraud scandals. This has raised some issues related to transparency and national security. The stretching of rules by developers to attract funds towards the urban environment has also raised the eyebrows of the critics.
Keep checking this blog space for more updates from the commercial real estate sector.