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EB-5 Immigration Investor Program: a Win-Win Program, or Is It?
Each country has its own business sensibilities, many of which are more focused on interpersonal relationships or norms that do not always line up with the United States' more formalistic business practices.
February 06, 2025 at 11:07 AM
6 minute read
Even if you have not heard of the EB-5 program, you have probably benefited from it, at least indirectly from the many businesses and even infrastructure programs it helped support. Created in 1990 by a bipartisan congress, the EB-5 program is a type of visa program designed to stimulate the economy by attracting foreign investments and creating new jobs. Whether invested directly into a business or larger aggregated funds, EB-5 investors must make a sizeable investment—as much as $1.8 million (though this number is reduced if invested in certain targeted areas)—in a U.S. business and demonstrate that their investment will support ten jobs in the United States. In exchange, the foreign investor gets a path to a green card and, eventually, citizenship. In theory, it’s a win-win for the investor and the U.S. economy.
In practice, however, these projects can be perilous for investors, ranging from bad deals to outright scams. Even under the best circumstances, there are significant language and cultural barriers that can complicate both the initial negotiations and the ensuing working relationship. Anyone who has ever worked with an interpreter knows that the phrase “lost in translation” is more than a cliché. The risk of misunderstanding is even higher when dealing with complex business models or lengthy contracts full of jargon. Cultural differences only compound these issues. Each country has its own business sensibilities, many of which are more focused on interpersonal relationships or norms that do not always line up with the United States’ more formalistic business practices.
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