After crying wolf countless times, the U.S. (USCIS, the direct governing body of the Department of Homeland Security, hereinafter referred to as DHS) has finally lost its patience. Recently, the DHS issued a Notice of Proposed Rulemaking that will significantly change the EB-5 investment immigration program. The DHS has provided a 3-month public comment period, until April 11, 2017, for the public to express their opinions on the regulation. Below is a brief summary:
1. Significant Increase in Minimum Investment Amount
The DHS proposes to increase the minimum investment amount from $1 million to $1.8 million, an increase of 80%. The minimum investment for Targeted Employment Areas (TEA) would rise from $500,000 to $1.35 million, which is 2.7 times (nearly 3 times) the original amount. In addition, the DHS proposes to adjust the investment amount every 5 years based on the Consumer Price Index after the regulation takes effect.
2. TEA Definition
There will be significant changes to the definition of TEA. The DHS proposes to allow TEAs to be established in towns with a population of 20,000 and an average unemployment rate of 150% of the national level. The DHS also proposes to revoke the power of state governments to designate TEAs and have the DHS exercise this power directly. However, specific criteria have not yet been provided.
3. Retention of Priority Date
On a positive note, the DHS proposes to allow certain applicants whose EB-5 petitions have been approved to retain their priority date (i.e., their place in the queue) for use in new EB-5 petitions. This situation only applies to circumstances beyond the investor's control, such as the closure of a regional center or significant changes to the project's business plan. This provision is very important for applicants from mainland China.
4. Permanent Green Card Application
The DHS proposes that dependent applicants who did not file an I-829 application with the principal applicant may file an I-829 application separately, while also allowing for flexibility in the interview location for I-829 applications.
5. Management of New Commercial Enterprises (NCE)
The DHS proposes to delete the phrase "rather than passive investment" in 8 C.F.R. § 204.6(j)(5). Currently, the regulations require EB-5 investors to participate in the management of the NCE through day-to-day management or by establishing company policies, and they cannot be purely passive. This point will be further elaborated in subsequent comments.
These regulations will significantly change the EB-5 investment immigration program. The minimum investment amount has increased significantly, yet no solution has been provided for the visa backlog facing applicants from mainland China, who account for more than 80% of all applications. The flaws in the regulation are beyond doubt.
Worldway immigration experts point out: According to the latest DHS proposal, the threshold for U.S. investment immigration will be significantly raised, and the time for the price hike may be brought forward. This once again proves the DHS's firm determination to implement the EB-5 price hike!
Recently, Worldway authoritatively released the "Six Major Immigration Trends of 2017," which mentioned that the U.S. EB-5 investment immigration program will show a trend toward high-end development in 2017, noting:
With the EB-5 price hike imminent in 2017, and as the Federal Reserve raises interest rates, the U.S. dollar enters an appreciation channel, and with the implementation of the CRS in 101 tax jurisdictions and the introduction of Trump's new tax policy, EB-5 investment will become increasingly attractive to high-net-worth investors, and even super-investors, thereby gradually presenting a new trend of high-end EB-5 investors.
Furthermore, strict foreign exchange controls will be implemented starting July 1. Therefore, taking advantage of the relatively stable policy period before April 28 to get ahead of the DHS, get ahead of the EB-5 price hike, and get ahead of the central bank's foreign exchange regulations, and sprinting to catch the last train for the $500,000 U.S. investment immigration program, is a matter of urgency!
With a precise grasp of the policy trends in U.S. investment immigration, Worldway has carefully selected three high-quality projects that have already received exemplar approval from the immigration bureau to help investors catch the last train for the U.S. immigration price hike. For more details on immigrating to the U.S., please call: 400-138-2929