Here is an overview of the recent changes and developments to the US EB-5 visa program.
Two-Year Sustainment Period is Good News but Unlikely to Result in Faster Repayment of Capital
The recent USCIS guidance may have set the legal sustainment period for the EB-5 investment at two years, but the average five to seven years taken by EB-5 projects to return capital to investors is unlikely to change anytime soon.
It takes anywhere between two and three years for a construction project to be completed and another two to three years for the project to be sold or refinanced, which is when the developer normally repays the EB-5 investors.
So, while the law may provide for a two-year sustainment period subject to completion of the job creation requirement, it may not be commercially feasible for construction project developers to repay capital in such a short period of time.
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USCIS Clarifies Filing EB-5 Petition Does Not Violate Single Intent Requirement
The USCIS has clarified that merely applying for the EB-5 visa when one is in the US on a F-1 or M1 visa does not automatically result in violation of the single intent requirement.
This is a significant clarification because there was a possibility of an international student returning to the US after visiting abroad may have face visa violation suspicion from the immigration officer at the port of entry.
Going ahead, any student who has a residence abroad and who otherwise can prove that he does not intend to abandon his or her home country won’t face questions due to an EB-5 visa application.
EB-5 Filing Fee Jumped by 300% On April 1, 2024
Unchanged since 2016, filing fees for various immigration petitions rose from April 1, including fees for filing petitions for the EB-5 visa, Adjustment of Status, and Removal of Conditions.
EB-5 investors will have to shell out more than triple the existing fee for filing an I-526/526E petition. The filing fee will jump from the current $3,675 to $11,160 from April 2024.
There is a 154 percent jump in filing fee for the I-829 Removal of Conditions petition too.
The cost of filing an I-485 Adjustment of Status will rise by 18 percent from $1,225 to $1,440.
Also, investors choosing to apply for Employment Authorization Document and Advance Parole with their concurrent AoS filing will have to pay an additional $260 and $630 respectively.
EB-5 May Be Better Option Than H-1B If Trump Gets Re-Elected
Donald Trump’s first term was a period of uncertainty and difficulties for H-1B workers. With Trump likely to be the Republican candidate, his re-election may prompt more and more H-1B workers to move to safer alternatives like the EB-5 visa to qualify for the green card.
EB-5 may also get a boost as international students may prefer using this visa to avoid the OPT-H-1B route to work in the US after completing their studies. This means the existing situation of zero EB-5 backlogs in the set aside category is unlikely to continue for long if Trump gets elected again.