EB-5 Program is extended again, this time until December
The US Congress has again extended the deadline for issuing the permanent EB-5 visa to investors willing to contribute at least $500,000 in American soil. This time the program was extended until December 7th of this year; the previous term ended on September 30th. This is the second time in 2018 that the US government extends the deadline for issuing the visa.
The extension of the term opens a new window of opportunity for investors interested in this visa, before possible changes in the program.
The EB-5 is a form of visa granted to those who invest a minimum of $500,000 thousand in some program of generation of employment in the United States. The EB-5 candidate has two investment options. In the first, more expensive, it proposes a business of its own to be managed in person. In this case, it is necessary to live in the city of the enterprise and generate at least ten direct jobs in up to two years.
The second option, at a lower cost, works as a passive investment in a project offered by Regional Centers, such as a cafeteria franchise or financing for the construction of factories. In this case, the entrepreneur must apply the money in a Regional Center designated by the US government, which will use the money in some business that promotes the development of the region. The candidate does not participate in management, and indirect jobs are also counted.
Brazilians are 3rd in the EB-5 visa ranking
Created in 1990 to direct investments to less favored regions of the United States, the program was dormant until the economic crisis of 2008. In 2003, for example, only 65 visas were granted in this modality; in 2012, there were 11,000.
After a jump in the last two years, Brazil reached the third place in June of this year in the number of authorizations granted, behind only China and Vietnam. In 2015, only 34 such visas were granted to Brazilians. The number reached 150 in 2016, and 282 last year.
All visas granted to Brazilians were for investments in rural areas or where there is a lack of employment, according to criteria defined by the government. For regions not covered by this profile, you need to invest a minimum of $ 1 million to apply for the EB-5.
The country was ahead of South Korea, India, Russia, Nigeria, and Mexico, where the EB-5 modality is also popular. The Chinese take the lead, with more than 7,000 visas issued last year.