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Navigating Visa Backlogs

  • Writer: Zoe Wollenschlaeger
    Zoe Wollenschlaeger
  • Feb 12
  • 3 min read

Updated: Feb 24

Increased Awareness Among EB-5 Investors: Navigating Visa Backlogs and Project Strategies


The EB-5 Reform and Integrity Act of 2022 mandates that the U.S. Citizenship and Immigration Services (USCIS) and the U.S. Department of State allocate up to 1,000 visas—10% of the total 10,000 EB-5 visas available each fiscal year—specifically for immigrant investors in projects situated within high-unemployment Targeted Employment Areas (TEAs). While this allocation seems beneficial on the surface, it raises concerns regarding the actual availability of visas for investors from countries with high demand, particularly China and India.


Most EB-5 projects have been located in high-unemployment TEAs. This has allowed developers to qualify for the lower minimum investment amount of $800,000, making these projects attractive to a broad range of investors. However, the fact that a majority of EB-5 projects fall under this designation means that the allocation of 1,000 visas is likely to be insufficient to meet the demand from investors who qualify.


The Implications of Country Caps and Retrogression


Within the high-unemployment TEA category, the 7% country cap further complicates the situation. This cap limits the number of visas available to each country to just 70. With hundreds of Chinese and Indian investors having committed to high-unemployment TEA projects since the RIA's enactment, the wait times for green cards are likely to become increasingly prolonged.


This issue is compounded by the possibility of retrogression, a scenario in which the U.S. State Department officially announces a halt on the processing of visas for specific countries due to overwhelming demand. Once retrogression occurs, investors from such countries may find themselves unable to apply for Employment Authorization Documents (EAD) or advance parole, which are critical for maintaining their status and allowing them to work while their applications are pending. Such developments could leave many investors in a precarious position, uncertain about their ability to secure their residency status in the U.S.


Shifting Focus to Rural Area Investments


In light of these challenges, many investors are reevaluating their strategies and increasingly considering projects located in rural areas. Investments in rural projects are not only eligible for the same lower minimum investment amounts but may also provide a more favorable pathway to securing green cards without the overwhelming competition and backlog present in metropolitan areas.


Rural projects often face less saturation, meaning that the chances of obtaining a visa may be significantly higher for investors who choose this route. Additionally, rural areas can offer unique investment opportunities, such as developing new business ventures or revitalizing existing ones, which can be appealing to investors looking for both a positive financial return and a successful immigration outcome.


The Importance of Due Diligence


Given the complexities of the current EB-5 landscape, conducting thorough due diligence has never been more critical. Prospective investors should carefully evaluate project viability, the experience of the management team, and the potential for job creation. Engaging with experienced immigration attorneys and financial advisors can help investors navigate the intricacies of the EB-5 process and ensure compliance with all regulations. Investors should also keep abreast of any legislative changes and how they may impact visa availability. Staying informed about the latest developments can empower investors to make strategic decisions that align with their immigration goals.



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Conclusion


As the EB-5 Immigrant Investor Program continues to evolve, Chinese- and Indian-born investors must remain vigilant and adaptable to the shifting landscape. The potential for visa backlogs in metropolitan projects, combined with the complexities introduced by the EB-5 Reform and Integrity Act, has prompted many to explore alternatives in rural investments. By understanding the implications of visa allocations, engaging in thorough due diligence, and seeking professional guidance, investors can navigate these challenges and enhance their chances of successfully obtaining a green card in the United States. In a competitive environment, making informed decisions will be key to unlocking the benefits of the EB-5 program. 

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DISCLOSURES

Securities are offered through Innovation Partners, LLC (IPLLC). Member of FINRA/SIPC, IPLLC is a Registered Investment Advisory Firm with the SEC under the Investment Advisers Act of 1940, and a registered Broker Dealer. Brandon Meyer is a Registered Representative with Innovation Partners LLC. Zoe Wollenschlaeger is a Registered Representative with Innovation Partners LLC. Check the background of these investment professionals on FINRA's BrokerCheck.

This communication is strictly intended for individuals residing in the state(s) of CA, DC, DE, FL, NJ, NV, NY, PA, TX, and WA. No offers may be made or accepted from any resident outside the specific states referenced. EB-5 Choice and Innovation Partners LLC are not affiliated entities.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by EB-5 Choice to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2019.

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