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In the latest EB5 news, we breakdown what has been happening to the EB5 Program over the last several weeks.
The latest EB5 news that has everyone’s attention is the announcement of the contents of the new EB5 regulation. News about EB5 processing times, priority dates, and the approaching EB5 sunset date are also hot topics.
EB5 Immigrant Investor Program Modernization
This rule is set to go into effect on November 21, 2019, so the industry has roughly 4 months to adjust to the changes. Interested investors have roughly 4 months to get their I-526 Immigrant Petition for Alien Entrepreneur filed before the minimum investment amount is increased.
The minimum investment amount for a targeted employment area (TEA) is set to increase from $500,000 to $900,000 and the minimum investment amount for a non-TEA is set to increase from $1 million to $1.8 million.
The other notable change is regarding TEA. First, authority over TEA designation will change. DHS will eliminate states’ ability to designate TEA status. When the rule goes into effect only the federal government (DHS) will be authorized to designate targeted employment areas. Second, what qualifies as a TEA will be more restrictive.
EB5 Processing Times and Priority Dates
The current processing times at the Immigrant Investor Office for I-526 Immigrant Petition for Alien Entrepreneur is 27.5 to 49 months.
The August 2019 EB5 Visa Bulletin final action dates for Mainland China, India, and Vietnam are all October 15, 2014. The dates for filing for Mainland China is November 15, 2014. All other countries are “C” or current.
According to the Visa Control’s Office, if an interested investor filed their I-526 Petition on May 6, 2019, their current estimated wait time if they are from Mainland China, Vietnam and India is as follows:
Mainland China: 16.5 years
India: 8.4 years
Vietnam: 7.6 years
Approaching EB5 Sunset Date
The next EB5 sunset date is September 30, 2019. What typically happens is that the EB-5 Regional Center Program is included in the Congressional budget bill and it is then passed without reform. This means, however, that it will come up again for reauthorization in a few months, when the next omnibus bill is voted on.
With the implementation of the EB5 regulation, it is possible that EB5 may be on the mind’s of several congressmen and women, meaning that they may actually spend time identifying reforms to the program. The EB5 Program desperately needs changes to the visa cap and the per-country limit. Without these changes, the backlog may grow. Changing the visa cap to only count investors and not their dependents would open up more than 6,500 visas for investors and it would bring in billions more in foreign investment along with more tens of thousands more jobs for American workers.
Why Is EB5 Still A Strong Investor Visa Option?
It’s an international steal. Even with the increase from $500,000 to $900,000 investment amount for TEA, the EB5 Program is still so competitively priced, that it’s still worth it. Converted to USD, Canada is $900k, United Kingdom is $2.5 million, and Australia is $1 million, for an similar investor visa.
Compared to other U.S. visa categories’ wait times, EB5 is still competitive. India for instance, faces the following wait times:
EB-1: 6 years
EB-2: 151 years
EB-3: 17 years
EB-5: 8.4 years
The EB5 visa also has vastly more benefits than other visa categories. These include:
- No employment sponsorship requirement
- Ability to live, work, and travel anywhere in the U.S.
- Top tier school access, with ability to qualify for in-state tuition
- Endless business opportunities in major U.S. cities
- Eligibility for citizenship after 5 or so years
- No business, investment, skills, language, training, or education requirements
- Strong economy and stable government
For more information about the latest EB5 news, send us a message.
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