Discussion questions
Discussion questions: Please read and respond with 2 references within the last 5 years only. 1 page 10 to 12 sentences per question so half a page for each question. It does not have to be lengthy as long as the question is fully answered with support(references).
1.) The Employment-Based Immigration: Fifth Preference (EB-5), was “created by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors. Under a program first enacted as a pilot in 1992 and regularly reauthorized since then, investors may also qualify for EB-5 classification by investing through regional centers designated by USCIS based on proposals for promoting economic growth. On Dec. 27, 2020, President Trump signed a law extending the Regional Center Program through June 30, 2021” (U.S. Citizenship and Immigration Services, 2021). EB-5 has many benefits and advantages to promote the foreign investment; for example, “while other American visas give one a chance to do business in the United States, the EB-5 visa gives you, and your entire family, a chance to legally reside” (Vojinovic, 2020). Another, the advantage of the EB-5 program is, unlike other visa programs where there is an element of surprise (lottery), the EB-5 visa is straightforward. Plus, there is no sponsorship that you will need to secure from an employer or a family member to be approved for EB-5” (Vojinovic, 2020). The EB-5 is a recoupable investment where the foreign investor “will be able to recoup the investment in full after four to five year” (Vojinovic, 2020). However, there are also some disadvantages for the foreign investor using the EB-5, “the amount that you’ll need to invest for just a residence is huge when compared to some of the other residences by investment programs” (Vojinovic, 2020). Also, “the EB-5 Regional Center Program is not a permanent program and must be reauthorized every few months” (Lithgow, 2019). Finally, the “EB-5 program visa wait times can stretch on for years” (Lithgow, 2019). For foreign investors with adequate resources could take advantage of the EB-5 program to gain residence in the US and the U.S. economy also sees a benefit; however, there is a significant risk for the foreign investor.
2.) Pros of EB-5 Program
The EB-5 Immigrant Investor Program was enacted in the 1990s and it allows investors to obtain permanent status by creating jobs and investing capital into the US marketplace (Hayes, 2015). Just like with anything, there are pros and cons. This program is not just for investors, but for their spouses and children under the age of 21 to apply for a green card (USCIS, 2021). The biggest pro is the benefit of becoming a permanent resident. Some of the other pros include the investors may work for any US employer or choose to operate their own business. Also, the investors can live and work anywhere in the US. Overall, the investment provides diversity to the business (Admin, 2012).
Cons of EB-5 Program
One of the cons of the EB-5 Program is the amount of money the investor must invest which is between $500,000 and $1,000,000. This is a large amount of money to come up with even for business owners. Of course, there must be proof that the money came directly from the investor and that the money invested was legally gained (Admin, 2012). It is all for security purposes, but I can see how it can be a hassle for the investor to get all the paperwork together. I am sure there is a lot of investigating along the way to make sure the business is meeting all the guidelines, which can cause stress to the investor. Another con is the investor does not operate the business. For some people, this may be a pro, but for
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