What Is the Future of the EB-5 Visa Program?
For the second year in a row, Masterplans was named one of the Top 5 Business Plan Writers by EB-5 Magazine.
The immigration visa process can be confusing and frustrating if you aren’t sure how to navigate the system. The good news is our VP of Immigration William Dean is an expert on the topic — most notably the EB-5 program. Not only do we think he’s great, but EB-5 Investors Magazine does too and named him to the Top 5 Business Plan Writers list for the second year in a row. Like everything else in our world right now, COVID-19 is affecting immigration. Here’s what Dean has to say about the future of EB-5 visas and what he wants applicants to know.
Can you give us a quick rundown of what the EB-5 program is?
Sure. Since its inception in 1990, the EB-5 program has accomplished three things. First, it gives wealthy foreigners a way to obtain a U.S. green card. Second, it affords developers a relatively cheap means of capital for their projects. Third, it creates American jobs — no fewer than 10 full-time positions, in fact, per investor, which adds up impressively over time. At this point, there have been hundreds of thousands of jobs created by this class of foreign investors, and tens of billions of dollars into the U.S. economy. EB-5 has its detractors, but fundamentally it’s been great for America.
How did you become an expert in immigration visas?
Mainly by writing business plans for immigrants, and studying the USCIS and consular guidelines as I went. Starting in 2006, I was working directly with E and L type visa seekers, trying to understand their business models and presenting the strongest possible evidence — in the form of a plan and pro forma — that they should be allowed to live and work here. Eventually I started networking with attorneys and other industry professionals to grow this part of our practice, and became an author and speaker at investment immigration conferences.
How does the COVID-19 pandemic affect immigration?
Long-term it’s premature to say, but right now, it’s certainly being disruptive. There have been closures at USCIS offices nationwide, with adjudicators working on some tasks remotely. Most in-person interviews have been tabled indefinitely, and consulates and embassies overseas are locked down. Certain deadlines have been relaxed, but most have not; notably, the recent H-1B lottery played out (with a glitchy new registration system!) as if it were business as usual. The travel bans pose an impediment too. It’s easy enough to delay your idea-stage immigration plans, but everyone with a pending petition has questions about what’s next.
How has EB-5 changed over the past 5 years? How do you think it will change post-COVID?
After years of embracing the status quo the program changed dramatically last fall. In November, USCIS bypassed Congress to implement substantially higher investment minimums (from $500k to $900k in a rural or high unemployment area, and from $1M to $1.8M otherwise). The new regulations also take state officials out of the equation for determining what project areas qualify as high unemployment; now, only USCIS makes that judgment.
COVID is threatening to shake things up in several ways. For one, there’s likely to be a cooling off period while everyone waits to see exactly how severe the recession becomes. Some prospective investors probably felt flush six weeks ago, but are now watching their account balances nervously. Also, the landslide of unemployment claims could recalibrate all of the data that’s being used in these petitions to establish whether a given project is happening in a high unemployment area. Finally, for the glass-half-full folks, there’s an outside chance that a future relief bill could include a provision that expands the number of available EB-5 visas and/or reduces the recently-inflated investment levels. (Though he later denied it, Senator Lindsey Graham reportedly pushed for these adjustments in that last coronavirus recovery bill.) Because EB-5 is both a job creation platform and a wellspring of low-cost capital, it’s a valid argument that making the program more accessible and expansive would help curtail the downturn.
What do you wish was different about the EB-5 process?
Well, from an investor’s perspective, it all just takes too damn long. Even if you’re not from a backlogged country like China, India, or Vietnam, the processing time is inexcusably slow — people wait years for approvals. If USCIS could handle these visa filings more efficiently that alone would be a difference maker. More broadly, it would be a boon to the entire program if the visa counts were applied per investor family rather than to each individual coming to the U.S. There are only 10,000 EB-5 visas issued each year, and right now, a couple with three kids sucks up five visas in exchange for a single investment in a project.
What’s your advice to someone seeking an EB-5 visa?
The number one thing you can do is to retain a qualified immigration lawyer. This area of the law is highly complex and constantly evolving, and you don’t want to vet an investment or file an I-526 without consulting industry experts. Because the government is going to scrutinize your finances, it’s also ideal to have transparent, well-organized financial statements that show where your money came from. Lastly, just have patience. EB-5 is a lot of things: it’s good for the economy, it’s a proven way to obtain a green card, it’s a way to get a better life for your kids. It’s not easy or fast.
