As described in Nolo’s update, “EB-5 Visas for Chinese Nationals Become Temporarily Unavailable for the First Time,” investors from China used up their 7% share of the 10,000 visas allotted in the investor-visa category in 2014, and the State Department is apparently ending its policy of letting them take the extra visas left over from other countries.
That’s a problem if you’re a national of China who was hoping to obtain a U.S. green card (lawful permanent residence) by making a minimum $500,000 investment in a U.S. company (category EB-5).
But as explained by attorney Jim Butler in his article in the San Francisco Daily Journal, “Immigrant investor visas threatened,” the fact that China hit the limit this year could also be a problem for the U.S. economy.
EB-5 visa applicants don’t typically start their own little businesses. Instead, they look to streamline the process by going through agents and middlemen who arrange investments in large projects, most commonly real-estate developments. Hotels, restaurants, night clubs, and senior living facilities in the U.S. have all been major recipients of Chinese investment money. The last Marriott or Hilton you stayed in may have been the result of a Chinese citizen’s wish to obtain a U.S. green card.
Will other countries take up the slack? Not much, if they haven’t so far. Butler says, “China is where the program is best understood, where a sophisticated system of marketing agents is available to help American developers find investors, and where the population has the largest interest in U.S. immigration and the willingness to pay for it.”
So, the next Marriott or Hilton you were hoping to stay in may just be a hole in the ground until and unless someone takes steps to fix this! And why shouldn’t they fix it, given the shot in the economic arm such investments provide? But the State Department’s policy reversal seems to indicate that someone up there is thinking more about the letter of the law than economic common sense.