Created in 1990 and designed to encourage capital investment from foreign investors and job creation, the EB-5 Immigration Investor Program will expire in June of 2021. For the bill to stay active, Congress could pass an omnibus bill that would approve a new budget. The program no longer has automatic approvals, meaning that Congress must take action now to continue the program’s operation. There are also a few amendments on the table for this program.
Approximately 10,000 visas are set aside each year for EB-5 applicants. To date, most of the applicants come from East Asia and the U.K. Many an immigration lawyer has helped their clients understand this program.
An investor must be prepared with a $900,000 investment in a Target Employment Area or a minimum of $1.8 million for other areas to qualify for the program. Other requirements are as follows:
- The commercial enterprise created from the investment must have a minimum of ten full-time employees.
- The positions created from this business can be direct or indirect.
- There are exceptions to allow an investor to assist a troubled business with at least a two-year history that has also incurred a net loss in the previous year or two years.
The primary benefit to investors is receiving Legal Permanent Resident status for both the investor and derivatives. Many have turned to an immigration attorney in the U.S. to ensure proper qualification for this program.
Proposed Immigration Bill Impacts
President Biden’s proposed immigration would exclude family members currently counting towards the overall cap of immigrants allowed per year. The new proposal would also remove the current by-country limits for green card allowances.
Currently, the EB-5 Reform and Integrity Act has been cosponsored by Senators Grassley and Leahy. Those involved in drafting the new bill believe that the actions have gone off track, such as allowing more investment in areas that didn’t need as much economic support. If approved, the changes included in that bill in its present state include:
- Empowering DHS with greater discretion to decline applications they believe to be associated with fraud.
- Extending the program for a further five years
- Mandating that regional centers and investors contribute towards a program that would investigate and pursue instances of suspected fraud
- Cut down on current processing times.
- Require all owners of regional centers to be U.S.-based.
- Requiring more disclosures to investors about issues related to conflicts of interest and business risks
- Require background checks of project principals and regional center leaders
Over $41 billion in investment funds have been created due to the EB5 program, which leads many experts to believe it’s going to pass again. However, those investors thinking about using this program are waiting to see how the bill evolves and whether any new requirements would directly impact them. For that reason, it is more critical for those who are thinking about submitting a petition to understand the timelines and requirements.
As immigration lawyers, we’ve worked with many people who want to know more about this program in terms of regulations and practice. Having a team you can turn to makes this complex process that much easier to understand. We’re happy to work with you to help you determine whether or not the EB5 program makes sense for your plans and what you can anticipate based on how the bill proceeds.
Why Hire Fayad Law, P.C. for Support with EB5 Reform?
Fayad Law, P.C. is a full-service immigration law firm providing support to clients in need of assistance with humanitarian issues, asylum concerns, and more complex practice areas. We have extensive experience serving clients in multiple languages and pride ourselves on our culturally diverse and culturally sensitive law firm.
Our immigration lawyers are here to help you if you have questions about the processing of your immigration status due to participation in this program. There have been some reports that those who otherwise qualify for this program have not received their green card as they have been promised. Whether you’re experiencing problems associated with getting the promised immigration status or you’re beginning to explore the possible benefits of this program for the first time, you need to know your rights. Since the proposed bill will likely go through multiple versions, you need an EB5 immigration lawyer in your corner to keep you apprised of updates and what this means for you and your affected business.
Our EB5 lawyers are watching the situation closely and are here to guide investors through the ins and outs of this program, including keeping them up to date about any changes. Need an immigration lawyer to support you and answer your questions? Contact our office today at 703-998-5390 or complete our online form.
Copyright © 2021. Fayad Law, P.C. All rights reserved.
The information in this blog post (“post”) is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.
Fayad Law, P.C.
8501 Mayland Dr Suite 101
Richmond, VA 23294
(703) 998-5390
https://fr.fayadlaw.com/
