[Major Reform] Congressional Leader Steps In: New EB-5 Draft Bill Aims to Break Backlog

Since the EB-5 visa first faced a backlog, the speed of U.S. investment immigration applications has slowed significantly. Since then, the severe backlog issue has become the biggest obstacle for EB-5 investors. Just as the U.S. EB-5 investment immigration act was extended to September 30, 2017, a major congressional figure, Senate Republican Whip and Texas Senator John Cornyn, personally stepped in to propose a new EB-5 draft bill, aiming to break the pain of the backlog.

Worldway Immigration Group now provides an overview and analysis of the several major issues in this latest EB-5 draft that concern investors the most:

1. Extension: 6 Years

The EB-5 Regional Center Program is extended to September 30, 2023;

【Worldway Interpretation】 Extension and permanent codification are the mainstream, as EB-5 makes a huge contribution to the U.S. economy and employment. Even under the Trump administration, EB-5 remains popular.

2. Price Increase: One-Step Implementation

$925,000 for non-TEA areas, $800,000 for TEA areas;

【Worldway Interpretation】 Compared to the previous $1.35 million and $1.8 million, this price point is relatively moderate, which also reflects the game and compromise between the urban and rural factions.

3. Visa Quota: 10,000 Visas Become 10,000 Families

【Worldway Interpretation】 For the first time, it is proposed to change 10,000 visas into 10,000 applications, counting only the principal applicant, while spouses and children are not included. The total EB-5 visa quota is 7.1%. If this comes to pass, the backlog issue will be resolved immediately.

4. Visa Quota: 20% Reserved for Rural and Abandoned Military Areas

20% of the visa quota is reserved for rural areas and military base areas abandoned within the last 25 years;

Definition of rural areas: Outside of towns with a population of over 20,000, and not in a metropolitan area or in an area with an average population density of less than 100 people per square mile within a range of more than 100 square miles.

5. Targeted Employment Area (TEA) Reform Becomes Stricter

According to the latest draft, a Targeted Employment Area (what we usually call a TEA area) refers to an urban priority area, a rural area, or a closed military base.

Definition of impoverished rural areas: Poverty rate of at least 20%, or median household income not exceeding 80% of the state's median household income, or rural areas with an average population density of less than 100 people per square mile within a range of more than 100 square miles;

Definition of urban priority areas: Poverty rate of at least 30%, or median household income not exceeding 60% of the state's median household income, or cities with an unemployment rate 1.5 times higher than the national average;

【Worldway Interpretation】 Compared with the previous HR5992 proposal, the scope of Targeted Employment Areas in this draft has narrowed, and the standards are more stringent. This also means that many current EB-5 projects located in metropolitan areas and bustling city centers may no longer qualify as TEAs.

6. Filing I-829 in Two Years

If it is indeed possible to file the I-829 within two years, it also means that the time for investors to obtain permanent green cards is expected to be shortened.

7. Minimum Age Relaxed

The minimum age is relaxed to 18, or 14 if a guardian is involved. This can also effectively solve the aging-out problem for older children.

8. Effective Date:January 1, 2018.

【Worldway Interpretation】 Although EB-5 has been extended to September 30, 2017, EB-5 reform remains the mainstream trend. Currently, the industry and stakeholders such as Congress hope to reach a compromise on a brand-new U.S. EB-5 Regional Center reform bill this summer, because the reform initiative, which has been delayed for two years, has seriously damaged the economic and political interests of all parties. It can be said that a new round of games in the U.S. Congress is about to begin. Let us wait and see whether this new draft can finally take effect.

But what is certain is that the EB-5 price increase and stricter TEA requirements are inevitable! Therefore, taking advantage of the current benefits and successfully immigrating to the United States before the policy changes is the best strategy.

【Special Note】 Currently, Worldway's 11th Anniversary U.S. Immigration Month is in full swing. Signing up for Worldway's U.S. EB-5 investment immigration project in May 2017 can also enjoy major discounts. For the latest analysis of the EB-5 investment immigration draft or more event details, please call: 400-138-2929

Disclaimer: Some of the material in this article comes from U.S. EB-5 Yidiantong, and the copyright belongs to the original author. The information or opinions in this article are for reference only. If there are any copyright issues, please contact the original author and us.