Newly Published EB-5 Modernization Rules from USCIS: does it impact Indians?

On July 23, 2019, United States Citizenship and Immigration Services’ (USCIS) regulations to update the Immigrant Investor Program were published in the Federal Register. The new EB-5 Immigrant Investor Program Modernization rules (New Rules) amend the historic Department of Homeland Security (DHS) regulations governing the employment-based, fifth preference (EB-5) immigrant investor classification and associated regional centers to reflect statutory changes and modernize the EB-5 program. The New Rules are creating quite a buzz in the EB-5 community with good reason. Of particular note, the New Rules modify the EB-5 program by:

  • Increasing the required minimum investment amounts;

  • Providing the long-awaited priority date retention to EB-5 investors in certain cases;

  • Amending targeted employment area (TEA) designation criteria;

  • Centralizing TEA determination;

  • Clarifying USCIS procedures for the removal of conditions on permanent residence fulfilment;

  • Providing for periodic minimum investment increases henceforth; and

  • Implementing a myriad other amendments.

The New Rules are effective 120 days from publication, which is November 21, 2019. The effective date of the New Rules presupposes that Congress will extend the EB-5 Program’s current sunset date of September 30, 2019. USCIS clarified that it will adjudicate investors, who file a Form I-526 petition before November 21, 2019, under the current EB-5 program rules. Now the race is on to initiate and complete investments by the effective date. (Source natlawreview.com)

What is the impact of EB5 rule change on Indians?

The Indian media picked up this story and began analysis of the impact on Indians. However, a fact are worth noting: Although the number of EB5 visas  quadrupled from 100 to 500 (link), this is a reminisce number when one considers hundreds of thousands of Indians waiting for employment based (EB) and family (F) sponsored visas

eb5
image source https://www.prnewswire.com/news-releases/eb-5-visas-issued-to-indians-quadruple-over-two-years-300818040.html

The reason for so few EB5 visas issued to Indians is not hard to fathom. The number of Indians who have half or a million dollars to spare is minuscule. Those who have a million dollars (6 or 7 crore rupees) to ‘invest’ are probably the crème de la crème of Indian business, government and society. They are not likely to think of ‘investing’ a million dollars for an American Green Card when they can just as easily get long-term visa to other countries around the world.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s