The US Office of Management and Budget has announced the new rules on July 25th, concerning the EB-5 program (Immigrant Investor Program Modernization), which is frequently used by the Indian American community. These will take effective from November 21st 2019.
The important feature of this new rule
The important and far reaching feature of this new rule is the increase in the minimum investment threshold which earlier was $500,000 and after the revision stands at $900,000, for all projects covering the Targeted Employment Areas. The reason cited is inflation, as per the statement of USCIS. In the future also there will be adjustments attached to the inflationary trend and will also happen every five years.
The Congress had created the EB-5 program 30 years ago for benefiting the US workers. The other reasons were boosting the economy, and help to concerned communities to get an incentive and receive overseas capital investment in the country. This rule will amend the previous regulations of Department of Homeland Security regarding the employment oriented, fifth preference, classification for immigrant investors, regarding their modernization using the EB-5 program.
A modern outlook and approach
The new rule is modern in its outlook and approach. It provides priority date retention for some EB-5 investors; and for increasing the necessary investment amount to consider the inflationary trend. There will be reforms in a few designations in the Targeted Employment Area; and a clarification in the USCIS procedures for removing the conditions regarding permanent residence. A thought will also be given to other technical and conforming revision.
The feature of this EB-5 program is that the eligible persons can apply for permanent residence in the United States by making an investment in a commercial enterprise based in USA and creating 10 jobs (full-time) for competent workers. The rule includes reforms in the EB-5 program and updates of present policies, as per the news release.
The course of the program
Since its beginning, the EB-5 program has moved away from intention for which it was created. The reforms regarding the increase in the investment threshold indicate the inflation during the three decades. It will also restrict the possibility of misuse substantially and ensure that the investment amount is reserved exclusively to benefit the rural areas and areas of high-unemployment that need it. These rules strengthen the EB-5 program and also answer to the intention of the Congress.
Potential investors must file their EB-5 application before these changes start taking effect in the future.
In case of increased interest in these visas the U.S. Department of State indicates that there can be a long waiting time for the investors. The waiting time for EB-5 visa is shorter in comparison to other green card programs and also offers many benefits to the investors.