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Trump Can Only “Kill EB-5 Through Policy” · IMI Podcasts

• 0:00
  SPEAKER_00: The Trump administration's announcement of the Gold Card, a$5 million donation for expedited U.S.
• 0:06
  SPEAKER_00: residency, sent ripples through the investment migration industry and beyond.
• 0:12
  SPEAKER_00: During an interview at IMI Connect Athens, Mona Shaw, managing partner at Mona Shaw and Partners Global, discussed the details surrounding the gold card and examined what this proposal could mean for the industry, wealthy foreigners, and the EB5 Immigrant Investor Program.
• 0:28
  SPEAKER_00: The gold card differs sharply from EB5.
• 0:31
  SPEAKER_00: As Shaw explained, the$5 million payment is not an investment, but a non-refundable donation.
• 0:38
  SPEAKER_00: And investors are, quote, not getting$5 million back.
• 0:42
  SPEAKER_00: It's not being invested in something, end quote.
• 0:46
  SPEAKER_00: This distinction is critical in her opinion.
• 0:49
  SPEAKER_00: For many potential applicants, she says the lack of a financial return may make the program less attractive, despite potential tax benefits that limit liability to U.S.
• 0:58
  SPEAKER_00: sourced income.
• 0:59
  SPEAKER_00: A considerable draw for high net worth individuals.
• 1:02
  SPEAKER_00: Even with these incentives, Shaw expects limited reach.
• 1:06
  SPEAKER_00: She acknowledges that, quote, there definitely will be takers, but she doesn't believe it will be as high as the administration anticipates, end quote.
• 1:15
  SPEAKER_00: Commerce Secretary Howard Lutnick in March asserted he sold 1,000 gold cards in one day, although no framework existed.
• 1:23
  SPEAKER_00: Just recently, Wired claimed that the Department of Government efficiency has started adding mentions of the gold card to the existing immigration system, but an application structure is still not available.
• 1:35
  SPEAKER_00: Shaw says it's highly unlikely for the gold card to replace EB5, because to quote, get rid of EB5, you'd need an act of Congress, and quote, calling such a scenario implausible.
• 1:47
  SPEAKER_00: She envisions the two programs running in parallel, yet acknowledging a clear divide.
• 1:52
  SPEAKER_00: EB5 investors are accustomed to a lower financial threshold and the prospect of returning their capital, making the$5 million donation a big ask for most.
• 2:02
  SPEAKER_00: She says the administration also faces logistical hurdles, pointing to the rigorous source of funds requirements standard in U.S.
• 2:10
  SPEAKER_00: immigration processes, in which the government often requires applicants to trace their funds back many years, which could prove a significant barrier for many prospective applicants.
• 2:22
  SPEAKER_00: The Trump administration's messaging around the gold card has included pointed critiques of EB5.
• 2:28
  SPEAKER_00: The Commerce Secretary has made comments that cast doubt on the program's future.
• 2:33
  SPEAKER_00: Yet Shaw downplayed the idea that EB5 could face legislative termination, reiterating its entrenched legal status.
• 2:41
  SPEAKER_00: She said that the gold card's announcement has driven up EB5 demand, especially within the regional center program's current authorization, which runs through 2027, and key filing deadlines in 2026.
• 2:54
  SPEAKER_00: She asserts investors are rushing to secure their place under the existing rules as Congress must reauthorize the program to remain beyond 2027.
• 3:04
  SPEAKER_00: Still, Shaw warned that while the administration might not end the EB5 through legislation, it could still hamstring it by indirect means.
• 3:12
  SPEAKER_00: Arbitrary denials, onerous requests for evidence, and other bureaucratic hurdles could deter applicants, even if the program remains intact.
• 3:21
  SPEAKER_00: Quote, Donald Trump cannot kill the program, but he can kill it through policy, end quote.
• 3:29
  SPEAKER_01: Right now we don't have any real information which has come out of the administration.
• 3:34
  SPEAKER_01: We are guessing based on a lot of what Donald Trump has been talking about.
• 3:39
  SPEAKER_01: For example, he stated that it's a five million donation.
• 3:43
  SPEAKER_01: People are not getting that.
• 3:45
  SPEAKER_01: They're like, okay, so like other countries, yes, you there's a donation, but at the same time, you get something back after a certain period of time.
• 3:53
  SPEAKER_01: This is not the case.
• 3:54
  SPEAKER_01: This is five million paid.
• 3:57
  SPEAKER_01: And I think that when that comes home, when that really resonates, that you're not getting five million back.
• 4:03
  SPEAKER_01: No, it's not being invested into something, it's going to lessen the expectation.
• 4:07
  SPEAKER_01: I'm not saying there won't be any.
• 4:09
  SPEAKER_01: There definitely will be people.
• 4:11
  SPEAKER_01: Whether it's a thousand or ten thousand, I don't believe that's going to be as high as that.
• 4:16
  SPEAKER_01: Um it depends on whether or not they hear they do kill off the EB5.
• 4:20
  SPEAKER_01: At this point, you cannot kill the EB5 because it's EB5 is entrenched in legislation.
• 4:25
  SPEAKER_01: In order to get rid of EB5, you have to go back to Congress and get an act of Congress.
• 4:30
  SPEAKER_01: It's going to be too much for them to get rid of EB5.
• 4:33
  SPEAKER_01: I do see a coexistence, which is what people are trying to do with the current situation, meaning one set of people will go for this$5 million gold card.
• 4:41
  SPEAKER_01: And we don't know yet how much paperwork is involved.
• 4:45
  SPEAKER_01: Maybe they won't even require a lawyer.
• 4:47
  SPEAKER_01: Um, but we don't see it going or the EB5 going out and people from EB5 jumping because the the money, the differential is too high.
• 4:57
  SPEAKER_01: Um, EB5, the moment the minimum amount is$800,000, for which you can get that all returned with interest.
• 5:04
  SPEAKER_01: Putting that, putting a million aside and getting it back, okay, people can do it.
• 5:10
  SPEAKER_01: Putting five million aside and not getting it back, it's a very small percentage.
• 5:16
  SPEAKER_01: We're seeing a push for EB5 because EB5 itself is only going to well, EB5 under the regional center is only authorized until 2027.
• 5:26
  SPEAKER_01: And if you want to be grandfathered under all the provisions, the last date for filing is September of 26th.
• 5:32
  SPEAKER_01: So there is a rush right now.
• 5:34
  SPEAKER_01: However, what is dampening the program are Donald Trump's immigration policies, as well as some of the immigration policies that we are seeing coming out of the current administration with relation to current decisions: denials, arbitrary, what's called requests for further evidence and intentions to deny, uh and and uh you know, related type of stuff.
• 5:58
  SPEAKER_01: So basically, although Donald Trump cannot kill the program, he can kill it through policy.
• 6:04
  SPEAKER_01: So if policy is so negative, it will dampen.
• 6:08
  SPEAKER_01: But at this point, we're really not seeing it.
• 6:10
  SPEAKER_00: We're still seeing people wanting to come in.
• 6:12
  SPEAKER_00: This episode first appeared as an article by Mustafa Daily on imidaly.com.
• 6:18
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• 6:25
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