Why the Gold Card Can’t Compete with EB-5

Industry leaders explain the ways the headline-making Gold Card executive order can’t match what EB-5 offers to investors and the country.

Since the executive order announcing the creation of the Gold Card visa program (and even before that, when the idea was first discussed earlier this year), questions have arisen as to how many people might apply for this visa, and whether it might draw investors away from EB-5, or even replace the program completely.

But as a new article from Law360 points out, there are many ways in which the Gold Card, even if it involves priority processing and the ability to include spouses and children under a single $1 million contribution, won’t offer the same things as EB-5.

JTC’s Jill Jones is quoted in the article, discussing the nature of how the Gold Card is being created through executive order. Many have wondered whether an act of Congress will be required to implement the program, and this uncertainty around its validity or permanency could cause foreign nationals seeking permanent residency to shy away from it.

“What I’ve learned in my years in EB-5 is that the investors that go into it thrive on certainty — they look for ways that they can be certain they’re going to get the result they’re looking for,” said Jones in the article. “The problem with the gold card being created as an executive order is that it can be taken away by the next executive order.”

If a future president rescinds the Gold Card executive order, what happens then? This type of uncertainty may cause potential applicants to pursue EB-5, where they can perform proper due diligence and work with trusted Regional Centers through a program that has successfully operated for decades. If the Regional Center Program is reauthorized, those seeking visas may opt to stick with an initiative that has been proven and has bipartisan support.

Also quoted in the article is Ronald Fieldstone of Saul Ewing LLP, who discusses source-of-funds issues and how they haven’t yet been addressed for the Gold Card, while the EB-5 Reform and Integrity Act of 2022 (RIA) provides strict guidelines for EB-5. In addition, Christine Chen of CanAm Enterprises talks about EB-5’s job creation, which has been estimated at 45 jobs per investor, as well as a reported 1,500% increase in investment in rural areas since the RIA.

“It’s something that the gold card would not necessarily be able to replicate,” said Chen.

Check out the full article to learn more about how EB-5 experts view the Gold Card and its potential to “replace” EB-5. While there is still so much uncertainty around how many people could actually afford the Gold Card, how revenue will be used, and whether the program can withstand legal challenges or changes in Washington, EB-5 continues to prove itself a stable and successful immigration and impact initiative.

Read the full article here.