The End of EB-5 Financing?
March 2025 | Category: News
By Jennifer Jette
On February 25, President Donald Trump unveiled his new “Gold Card” visa program. The proposal, which offers wealthy foreigners the ability to buy permanent residency privileges and a pathway to U.S. citizenship for a $5 million fee, could have sweeping implications. The new initiative aims to replace or alter the existing EB-5 Visa program, which has historically allowed investors to obtain green cards by contributing to the United States’ economic development.
What Is the EB-5 Visa?
The United States EB-5 Visa program was created in 1990 with the enactment of the Immigration Act of 1990. The program enables eligible foreign investors to obtain lawful permanent residency in the United States (i.e., become a “green card” holder) by investing in U.S. businesses so long as such investment creates at least 10 new, full-time jobs for Americans and/or work-authorized residents. With the passage of the EB-5 Reform and Integrity Act of 2022 (“RIA”), Congress set the minimum investment to qualify under the EB-5 program at $1.05 million (or $800,000 in certain rural or other high unemployment areas). Various projects throughout the United States, including mixed-use developments, hotel developments, and various infrastructure improvements are financed using these EB-5 investments.
What Is the Gold Card Visa?
The “Gold Card” is essentially an elevated version of the green card, designed to attract wealthy non-U.S. citizens by offering green card privileges and a streamlined payment-only route to citizenship. Under this program, applicants would gain the right to live and work in the U.S. without the traditional hurdles associated with other visa types, such as the H-1B or EB-5.
Unlike the EB-5’s required minimum investment requirements and stringent job creation criteria, the “Gold Card” offers a straightforward path to citizenship, based solely on the applicant’s financial capacity. Trump claims that the money generated by this new program could help reduce the federal deficit. Additionally, Commerce Secretary Howard Lutnick noted that the new program could help eradicate issues of fraud often associated with the EB-5 program.
Potential Implication for Commercial Real Estate
When first announced, Trump claimed that the new “Gold Card” program would replace the EB-5 Visas within about two weeks time. Subsequently, the Administration suggested that the two programs could be interconnected via the Department of Commerce, but failed to elaborate on the specifics. Ultimately, although the “Gold Card” program could coexist with EB-5, the announcement creates uncertainty about the future of the EB-5 program.
As a matter of law, President Trump cannot unilaterally repeal or amend the EB-5 program since it was created by an act of Congress. Such a move technically requires legislative action. Notwithstanding the foregoing, if the two programs exist alongside one another or if the “Gold Card” program eventually replace the EB-5 program altogether, then we may see higher net-worth individuals pursue U.S. permanent residency and citizenship via this donation-based method instead of the job-creation and investment-based model.
EB-5 capital has historically served as a unique alternative to traditional sources of funds for commercial real estate developers. Should the EB-5 program be repealed, replaced, or simply not renewed beyond its September 30, 2027, expiration date, any such developers who have come to rely on EB-5 funding will need to explore and pursue new means of financing for their projects. To the extent that the “Gold Card” does not replace EB-5 but instead exists alongside it, developers should still expect that less EB-5 capital will be available, with many wealthy immigrants opting to pursue the “Gold Card” route in lieu of EB-5.
Conclusion
While the “Gold Card” proposal is still in its early stages, its introduction signals a significant shift in policy. As further details emerge, real estate businesses should remain proactive in assessing how this policy shift could influence their future projects and financing options.
Jennifer Jette is a commercial real estate and corporate attorney. For more information, contact jjette@fmlaw.com.
The content on this blog is for informational purposes only and does not constitute legal advice. The information provided should not be relied upon as a substitute for professional legal counsel.