Immigration policy is a barometer of the U.S. economy; when the economy is good, immigration policies are relaxed, but when the economy deteriorates, immigration policies tighten. Recently, the U.S. has a shortage of funds but not of people, while China is home to a new class of wealthy individuals. As work visas decrease, investment immigration has surged. For employment-based immigration, except for the first priority category, the waiting times can extend for years. The waiting times for family-based immigration are also long, leading many to turn their attention to regional centers established for investors seeking investment immigration.
It is reported that the U.S. Citizenship and Immigration Services has established a new immigration category specifically for investors, known as the EB-5 visa. This category allows foreign nationals to obtain a green card through investment in the U.S. Applicants must invest at least $500,000 in a targeted employment area or a high-unemployment area in the U.S. to qualify for a green card. According to data from the U.S. Department of State in May, from October 2009 to May 2010, there were 1,100 applications, with 955 approved. From October 2008 to September 2009, the total number of approved EB-5 visas nationwide increased from 1,443 to 4,218, with 70% coming from Asian countries and regions such as China and South Korea.
Since the introduction of the investment immigration category in 1990, the immigration bureau has allocated 10,000 visas each year, and applicants have "never reached the cap." However, this year may be different. Industry insiders believe that if this trend continues, the number of applications next year may exceed 10,000, and "investment immigration may require a waiting period." Insiders have revealed that the U.S. Citizenship and Immigration Services has recently accelerated the review process for investment immigration, eliminating the need for interviews, with temporary green cards being issued four months after application, and the fastest approvals occurring in as little as five weeks.
Last year, there were only 20 regional centers across the United States; this year, that number has surged to 80, all vying for wealthy individuals from mainland China, even going so far as to recruit across the ocean in cities like Beijing, Shanghai, and Wenzhou. A regional center is an organization approved by the immigration bureau to act as an agent for investment immigration, assisting investors in submitting immigration applications. There are currently 99 regional centers in the U.S., an increase of nearly 30 from 2009. California has the most regional centers, with 26, followed by Florida with 11, and Washington with seven. Despite its commercial prosperity, New York currently has only three regional centers.
Issues with the U.S. EB-5 program
The official name is Employment-Based Fifth Preference (abbreviated as EB-5). This program has no requirements regarding education, language, age, or business background for applicants; the only requirement is that the applicant must invest at least $500,000 in a targeted employment area or a high-unemployment area in the U.S.
The issues are as follows:
1. The pilot program is set to expire on September 30, 2012. In recent years, the U.S. Congress has voted to extend the program's duration, but there remains a risk that the program may expire before it is adopted as a permanent program.
2. Investors must prove that their assets were obtained legally, meaning they must demonstrate that their investment funds come from legitimate sources such as salary income, investments, property sales, inheritance, gifts, loans, or other lawful means. If the funds originate from company assets, they do not meet the requirements.
3. Additionally, in the $500,000 investment projects, the investor's fate is largely in the hands of others. Unless the regional center can effectively achieve its investment goals and create the required job opportunities for U.S. employees, the requirements for applying for unconditional permanent residency cannot be met.
4. In comparison, in investment projects managed by the investors themselves, the investors have much greater initiative because they can control the operation of the company. However, it is crucial that the investment project and process meet the requirements and withstand scrutiny; otherwise, permanent residency cannot be obtained after two years.
