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EB-5 Program On-Going Lapse until February 2022

Dec 22, 2021

 

As many of you know, the USCIS EB-5 Program has not been renewed since June 30th, 2021, and continues to be in a lapsed state.

The most recent chance for renewal was December 3rd, but, alas, it got pushed back again, most likely until mid-February 2022 when after the 18th, it is expected that a Federal Budget Bill and a long Continuing Resolution will be passed.

The ongoing news of the lapsed EB-5 Golden Visa, including anticipated details and updated terms, can be found here.

 

Impact of the lapsed program on US economy

According to the IIUSA Analysis Impact of the Lapse on Investors, Investment, and Jobs document from August 2021:

Each one of these EB-5 investors who are affected by the lapse of the Program has already committed at least $500,000 in capital investment to an economic development project in the U.S. By our estimates, approximately 300 of these investors have invested at least $900,000 through a regional center after the EB-5 regulatory reform raised the minimum investment amount between November 21, 2019, and June 22, 2021.

We estimate that nearly $4.9 billion in capital investment has been or is in the process of being injected into the U.S. economy through a regional center from EB-5 investors with a pending I-526 petition when the Program expired on June 30. 2 In addition, EB-5 investors whose I-526 petitions have been approved have already generated over $10.3 billion, funding a variety of job-creating projects through regional centers across the country. Together, more than $15 billion in capital investment has been committed by the EB-5 investors who are affected by the current lapse of the Program. These investments are at stake if the Program is not reauthorized by Congress.

 

Effects of lapse on applicants

The delays in re-authorization create uncertainty for thousands of investors in the program, tying up capital unnecessarily.

As of June 30, 2021, according to IIUSA:

  • Number of I-526 Petitions Pending 12,798
  • Percentage of I-526 Petitions Affiliated with an RC 93.40%
  • Number of RC-Affiliated I-526 Petitions Pending 11,953

Estimated Number of RC-Affiliated EB-5 Investors with an Approved I-526 Petition Awaiting Conditional Legal Permanent Residency (CLPR) | As of June 30, 2021

  • Number of Approved I-526 Petitions Awaiting Visa Availability 21,503
  • Number of Approved I-526 Petitions Awaiting Conditional Legal Permanent Residency 592
  • TOTAL Number of EB-5 Investors with an Approved I-526 Petition (As of June 30) 22,095
  • Percentage of I-526 Petitions Affiliated with an RC 93.40%
  • Number of RC-Affiliated I-526 Cases with an Approved I-526 Petition Awaiting CLPR 20,637

 

February 2022 EB-5 Program Re-Authorization Date

From the AILA website:

On December 3, 2021, President Biden signed into law H.R. 6119, the “Further Extending Government Funding Act” which includes a short-term continuing resolution that funds the federal government through February 18, 2022. (Therefore) EB-5 RC program reauthorization legislation is expected to be included in future appropriation bills.

And, from a recent Gulf News article:

With U.S. congressional elections coming up in 2022, it is unlikely that a long Continuing Resolution will once again be passed. It is expected that the federal budget bill will be agreed upon by Democrats and Republicans by the end of February 2022 at the latest.

 

Application grandfathering

From the Gulf News article:

There will likely be a parole option, whereby if an investor’s EB-5 petition has been pending for over two years and there has been no action by the United States Citizenship and Immigration Services (USCIS) on the file, the investor will be able to obtain a work permit to live and work in the United States. With the parole option, EB-5 investors can begin their lives in the United States regardless of the status of their EB-5 applications. Another change will likely be to the government filing fees, which will increase to $50,000. If a petition has not been reviewed after 24 months, the $50,000 fee will be returned to the investor. The deadlines set on USCIS for the review of an investor’s EB-5 petition provide an incentive to speed up the process.

 

Investment amounts when renewed

Continuing from the article above, some industry experts are anticipating that the EB-5 legislation is likely to maintain the required capital investment at $500,000 for the initial 30 to 60 days, after which it will gradually increase by $100,000 increments on a year-to-year basis.

 

More details on the new bill

The info on the expected bill indicates that it reflects the needs of the different players. Investors, developers, regional centers, communities, and the government all have their respective goals; the proposed bill seeks to find a common ground that will help the economy, allow investors to obtain their green card, all while minimizing chances that the program lapses again in the future…

 

Today’s Takeaway’s on the Re-authorization of the EB-5 Golden Visa Program

The lapsed EB-5 Golden Visa Program has negatively affected the American economy in many ways. Congress needs to realize now how essential the program is for job creation.

The good news with these delays is that we can expect a more robust, well-rounded, and fair program once it is re-authorized.

 

Our immigration experts are available to confidentially discuss your best EB-5 options AS WELL AS your best US property investments.

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