The EB-5 Foreign Investor Program – What Do The Speculations Say?

September 24, 2021 | USA Visa |

In the previous five years, several things have changed when it comes to the USCIS or U.S. Citizenship and Immigration Service. Speaking of which, the US filed an appeal concerning the decision taken in the Behring Regional Center lawsuit, which deals with the U.S. EB-5 Foreign Investor Program. Such an appeal tends to deal with preliminary injunctions acquired by the BRC or Behring Regional Center against the rule introduced against the Department of Homeland Security’s EB-5 Modernization regulation. This came into power on November 21, 2019. 

On the contrary, the EB-5 Modernization Rule & Regulation raised the minimum investment needed to get into EB-5 projects from $500,000 US to $900,000 US. This subjectifies when the project is located in the TEA or Targeted Employment Area, but from $1 million US to $1.8 million US if located outside of the TEA. 

What Was The Impact?

As already discussed, the Behring saying reduced the entire EB-5 investment down to US $500,000. However, this also reinstated flexible means of accommodating TEA’s boundaries and legalities, making EB-5 regional center projects relatively more attainable and accessible to urban development. It is essential to know that the basis of the entire decision was that the former Homeland Security Secretary, Kevin McAleenan, wasn’t lawfully serving in the position while promulgating the EB-5 Modernization Rule.

Everything You Need To Know About The Stay

The Behring appeal that was reinstated has started speculation concerning the direction of the EB-5 Foreign Investor Program. The most significant factor in the Behring hearing was that the entire rule did not entertain any stay. This implies that the U.S. Citizenship and Immigration Service would continue to take in petitions under the investment program that people may file with the lower amounts. Both the parties don’t know when the U.S. Citizenship and Immigration Service Appeal will be successful. 

More so, a stay, if approved, will temporarily put the decision implementation on hold, thereby reinstating the EB-5 Rule. 

What’s The Current Position Of EB-5?

Right at this moment, the entire program is in disarray. In addition, the regional center of the program has also expired, contributing to the sunset provision that was earlier in operation until 30th June 2021. For nearly two decades, the program was renewed by Congress every year. This is the way the program never went into sunsetting. However, the regional center was detached from standard Congressional budget renewals this time around, which further followed sidelines. 

If you did not know, the significance is that around 90% of the program investors earlier chose the Regional Center, which was initially preferable since the investment only amounted to a five-year loan. This was also directed towards the regional center. 

What About The Current Regional Center Program Investors?

Times are challenging, and everyone involved on both sides wants a solution to this rule. Moreover, there’s growing Congressional recognition about the requirement to secure investments of people who initially invested through the EB-5 program. This is one of the improved measures that act as a grandfather investor amid regional center projects. Meanwhile, this allows them to conclude all their investments and receive green cards. Moreover, it is a passage desired by parties to maintain a dignity level in the community of foreign investment. While this may go on to become influential, the authoritative power might implement the move. 

Besides, the following months proved to be decisive in the development of the EB-5 Foreign Investor Program. Many experts have also indicated that Congress can make a significant move in favor of the EB-5 program.

Who Can Help?

Flying Colour has a team of experienced visa consultants who will understand your standing and define a suitable solution. Moreover, our specialists will assist in implementing an ideal process to achieve the desired solution.

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