EB-5 Immigrant Investor Program after the announcement of few recent changes is having a surge among Indian applicants, as there is a fee hike from November. The Trump administration wants to increase the standard minimum investment to $1.8 million from $1 million.
For Targeted Employment Areas having an acute unemployment, the investment requirement was raised from $5,00,000 to $9, 00,000 due to the 50 percent difference in investment sum between Targeted Areas and non-TEA areas. The new rules come into effect from 21st November, 2019. The rule also states that there will be an automatic adjustment in the investment amounts owing to inflation after five years.
This instance is the first since 1993 when the rules changed in a significant manner. The increase in investment requirements will also lead to an increase among Indian applications in the future months.
Experts also anticipate a sizable increase in the number of Indian EB-5 investors to achieve a record-breaking level. Indians are knowledgeable regarding the value of deals and are interested in investing the amount before there is an increase in the threshold to $1.8 million.
Increased applications will lead to a long waiting period for applicants who applying for EB-5 visa after the due date in November.
Some of the experts also feel that there will be an enormous surge in applying for EB-5 applications from all parts of the world. Many investors will opt for applying by using the old rules. The result will be a delay in processing as well as negotiation of applications and applicants after November 21 are likely to face a long waiting period. Indians are already suffering from visa anomalies at the hands of Administration and are in no mood for a longer wait than the present years of waiting to begin the conditional permanent residence.
TEAs will have an authorization by the Department of Homeland Security and not by the State as per the revised regulation requirements. The aim is to drive more investments in rural areas that may pose a high risk for Indian investors.
This change is significant. After Nov 21, TEAs will be solely designated by the DHS as per the uniform criteria for the entire USA. Furthermore, the new rules state that Metropolitan Statistical Areas cannot have a TEA where the population exceeds 20,000. Indians will have to invest in rural areas or in areas of high-unemployment located outside cities for the EB-5 visa. This change has a lot of risk for Indian investors for setting up viable projects in non-urban areas.
The increased threshold and high risk for investors will not deter as the demand for EB5 comes from Indians who reside in the US. The program will remain popular with many Indians. The present H-1B setup is chaotic and has a long waiting period.
There is inconvenience in obtaining the EB-1, 2 and 3 category Green Cards, hence the EB-5 visa, is mostly stable and transparent to get a US Green Card. Indians having a pending green card applications see a benefits through this category. This benefit outweighs the costs, after considering the recent investment increase.
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