Later this month, the EB-5 Immigrant Investor visa program may face extinction unless Congress acts by the deadline. Even if the program survives, proposed changes could affect developers that count on EB-5 investors to fund their projects. The E-5 program is estimated to result, at least in part, in the creation of almost 200,000 jobs in the U.S., bringing in nearly $14 billion from Chinese investors. The possibility of a phase-out has caused Chinese investors to scramble to apply before the April 28 deadline.

Eb-5 Program Dominated by Immigrant Investors From China

According to Bloomberg, uncertainty surrounding the program has sparked a rush among would-be participants eager to fund projects before the deadline.  Chinese investors are estimated to make up as much as 85% of total EB-5 participation. Although the Chinese government has tried to prevent investment abroad, EB-5 investments from China totaled $3.8 billion last year.

To have any chance of being renewed, the program must overcome some significant hurdles. In January, several government agencies proposed new regulations for the program. Increasing the minimum EB-5 investment from $500,000 to $1.35 million may be the biggest proposed change. The changes under consideration are carryovers from former President Obama’s administration. Since then, however, President Trump has put a freeze on adopting new government regulations pending review. Comments on the proposed changes are required by April 11.