A federal program that allows foreign investment in U.S. construction projects, including some in New York City, in exchange for an eventual green card has begun to raise concern for the Obama Administration, according to a recent article in The New York Times. The Immigrant Investor Program, dubbed “EB-5,” was created in 1990 to stimulate the economy and create jobs through capital investment, but critics contend that the program has fostered “unsavory practices” in recent years, according to the Times, which examined the program.
Under EB-5, foreigners must invest in a new commercial enterprise and create or preserve at least 10 full-time jobs for qualifying U.S. workers within two years of the investor’s admission to the U.S. as a conditional permanent resident. Program participants may choose one of two required minimum investments for projects: a general investment minimum of $1 million, or a targeted employment investment of $500,000 for a project in a rural area or one with high unemployment.