Lorain, Ohio, and the Future of Investor Visas: From EB-5 to Trump’s “Gold Card” Program
Lorain, OH – The EB-5 Immigrant Investor Program has long been a tool for economic development in cities across the U.S., including parts of Ohio. Designed to bring foreign capital into the country, the program has helped fund various projects, though it has also been plagued by fraud and controversy. Now, President Donald Trump is proposing a new visa initiative—the “Gold Card” program, which could reshape how wealthy investors gain residency in the United States.
The EB-5 Program: A Lifeline for Investment in Ohio
The EB-5 visa program, established in 1990, was intended to stimulate job growth by allowing foreign nationals to invest in U.S. businesses in exchange for a pathway to permanent residency. Investors had to commit at least $500,000–$1 million (later increased to $800,000–$1.05 million) into a qualifying American project, creating at least 10 U.S. jobs in return.
Ohio has been a key beneficiary of EB-5 investment, with 16 approved regional centers across the state. By 2020, these investments totaled $89.5 million, generating approximately 1,600 jobs. Cities like Lorain, with their economic challenges and Targeted Employment Areas (TEAs)—high-unemployment zones eligible for EB-5 funds—have been ideal locations for such investment.
However, the EB-5 program faced scrutiny over the years, with critics pointing to fraudulent projects, misuse of funds, and national security concerns. Some developers exploited loopholes to redirect funds into luxury real estate projects in wealthy urban areas, rather than aiding struggling communities as intended.
Biden’s Reforms to EB-5
During his presidency, Joe Biden took steps to strengthen the EB-5 program rather than eliminate it. In March 2022, he signed the EB-5 Reform and Integrity Act, which reauthorized the EB-5 Regional Center Program through 2027. The law introduced stricter oversight, raised investment minimums to $800,000 for high-unemployment areas and $1.05 million for other locations, and improved fraud prevention measures.
While Biden did not make extensive public remarks about EB-5, his administration’s actions suggested a belief in the program’s ability to drive economic growth and job creation in struggling regions like Lorain.
Trump’s “Gold Card” Proposal: A Rebranded EB-5?
Now, as part of his current administration, President Donald Trump has introduced the “Gold Card” visa—a new initiative aimed at attracting the world’s wealthiest individuals. Under this program, foreign investors can obtain “green card privileges-plus” in exchange for a $5 million investment into the U.S. economy.
Speaking about the initiative, Trump frames the program as a way to bring in high-value investors:
“Wealthy people will be coming into our country by buying this card. They’ll be wealthy and they’ll be successful, and they’ll be spending a lot of money and paying a lot of taxes and employing a lot of people.”
Commerce Secretary Howard Lutnick also emphasizes the shift away from the EB-5 program, calling it “full of nonsense, make-believe, and fraud” and suggesting that the higher price point and stricter vetting of the Gold Card program will ensure that only “wonderful, world-class global citizens” can participate.
Key Differences Between EB-5 and “Gold Card”
| Factor | EB-5 Program | Trump’s “Gold Card” |
|---|---|---|
| Investment Amount | $800K – $1.05M | $5M |
| Job Creation Requirement | 10 full-time U.S. jobs | Unclear |
| Path to Residency | Green card after investment & job creation | “Green card-plus” benefits (exact terms unclear) |
| Potential Beneficiaries | Middle-class & wealthy investors | Ultra-wealthy elite |
What This Means for Lorain and Similar Communities
For cities like Lorain, which have relied on EB-5 investments to fuel local projects, the shift to a much higher investment threshold ($5 million) could have mixed consequences:
- Fewer, but larger investments: While EB-5 often brought smaller-scale investments into communities, the “Gold Card” will attract only the ultra-wealthy, potentially limiting regional economic impact.
- Shifting focus to elite projects: With a higher buy-in cost, investments might be funneled into high-end ventures rather than job-creating infrastructure in struggling areas.
- Less accessibility for mid-tier foreign investors: Many investors who participated in EB-5, especially those from China, India, and Latin America, may not be able to afford the new price tag.
While details about the “Gold Card” remain scarce, critics warn that, like EB-5, it could become a tool for money laundering, real estate speculation, and political favoritism if oversight is weak.
Final Thoughts: A New Era of Wealth-Based Immigration?
The EB-5 visa program helped shape Ohio’s economic landscape, bringing in needed funds despite its flaws. Under Biden’s leadership, the program was reformed rather than scrapped, aiming for better oversight and investment distribution.
However, with Trump’s “Gold Card” proposal replacing it, cities like Lorain could see a shift in investment trends, favoring billionaires over traditional business investors.
Will the “Gold Card” visa bring real economic benefits, or will it simply be a pay-to-play system for the global elite? That remains to be seen.