John Burson  edited Sunday, December 8, 2024

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Over 4,400 Pre-RIA EB-5 Visa Applications Still Pending | EB5 Visa Backlog Analysis

Thousands of pre-RIA EB-5 petitions face delays, especially for Chinese investors, as USCIS struggles with processing times and visa allocation

Thousands of Pre-RIA EB-5 Visa Applications Still Pending, Data Shows

The U.S. EB-5 visa program, designed to attract foreign investment for U.S. job creation and economic development, continues to face significant backlogs, particularly among applicants who filed before the 2022 implementation of the EB-5 Reform and Integrity Act (RIA). As of July 2024, more than 4,400 EB-5 investor petitions remain pending, highlighting ongoing delays and frustrations for investors and their families who are waiting for approval.

Overview of the EB-5 Visa Program and Pre-RIA Backlog

The EB-5 visa program allows foreign nationals to invest in U.S. businesses in exchange for permanent residency (a green card). A critical component of the program is the I-526 petition, which is the first step in securing an EB-5 visa. However, a significant number of applications filed before March 2022, when the EB-5 Reform and Integrity Act was enacted, are still awaiting adjudication by the U.S. Citizenship and Immigration Services (USCIS).

According to data obtained through a Freedom of Information Act (FOIA) request by the American Immigrant Investor Alliance (AIIA), there are currently more than 4,400 pending EB-5 petitions that were filed prior to the March 2022 reforms. Of these, a majority—nearly 3,000—are from Mainland Chinese investors, while others come from countries like India (473 applications) and the rest of the world (1,049 applications). This backlog represents only a fraction of the total EB-5 processing delays, as many applicants are still waiting for green card issuance or immigrant visa processing.

China Leads the EB-5 Visa Backlog

China continues to dominate the EB-5 backlog. With 2,974 applications still pending as of July 2024, Mainland Chinese investors account for the lion’s share of the delays. This persistent backlog is largely due to the high demand for EB-5 visas from Chinese nationals, many of whom seek to secure U.S. residency for themselves and their families through investment in U.S. businesses and development projects.

One of the key features of the EB-5 program is its allocation of visas based on a country’s demand. Due to the overwhelming number of applications from China, there is a concern that there will not be enough EB-5 visas to satisfy demand from Chinese applicants by 2030. Conversely, applications from other countries, such as India, are expected to see resolution in the coming years, with the backlog likely to be cleared by 2030, even under the worst-case scenario.

The Impact of Delays on EB-5 Investors and Attorneys

The delays in the EB-5 visa program are causing frustration among investors and attorneys alike. Industry experts argue that the lengthy wait times—some applications have been pending for nearly a decade—pose significant challenges for foreign investors who have invested substantial sums of money into U.S. businesses.

Tammy Fox-Isicoff, an attorney with Rifkin & Fox-Isicoff, P.A., expressed concern about the inefficiency of the USCIS adjudication process, particularly when it comes to the EB-5 program. “It is tragic that the EB-5’s 526 adjudication process is conducted by an agency (USCIS) with little competence in business and financial nuances,” Fox-Isicoff noted. She argued that delays of such magnitude undermine the credibility of the program and lead to negative perceptions among potential investors.

What Can EB-5 Investors Do While Awaiting Approval?

For those who have filed an I-526 petition and are currently in the U.S. in a legal non-immigrant status (such as a visitor or student visa), there is a potential workaround that could help them avoid waiting for I-526 approval before moving forward. According to EB-5 attorney Edward Beshara, investors and their families may be eligible to apply for a status adjustment in the U.S. even before their petition is approved, provided that the priority date of the petition is current. This allows for the submission of employment authorization and advance parole applications, enabling investors and their families to work and travel while waiting for their green cards.

The Importance of Targeted Employment Areas (TEAs)

A significant part of the EB-5 program is the focus on creating jobs in targeted employment areas (TEAs), which include rural areas or regions with high unemployment rates. To incentivize investment in these areas, the U.S. government offers lower investment thresholds—$500,000 for rural or high-unemployment TEAs, as opposed to the standard $1 million investment required outside of these areas.

Understanding the criteria for EB-5 targeted employment area (TEA) designation is crucial for investors seeking to maximize their impact and minimize their financial commitment. In recent years, there have been concerns about the accuracy and integrity of TEA designations, particularly as certain projects and regions may seek to artificially inflate unemployment rates to qualify for TEA status. As noted by industry insiders, it is vital to ensure that the targeted employment area list is accurate to maintain the integrity of the program.

EB-5 Processing Times: A Growing Concern

The prolonged processing times for the EB-5 visa program are a major issue for investors. As highlighted by experts, the delays are not only causing financial distress for investors who are waiting for their petitions to be processed but are also harming the overall reputation of the EB-5 program. Industry professionals are calling for improvements in the adjudication process, with some suggesting that the responsibility for processing EB-5 petitions be transferred to a more capable agency.

A significant factor contributing to the backlog is the limited number of EB-5 visas available annually. In fiscal year 2023, 9,817 EB-5 visas were issued, with a large proportion allocated to Chinese applicants. The ongoing delays, combined with unused Set Aside EB-5 Visas, further exacerbate the backlog. However, some experts remain optimistic that recent reforms will help clear the backlog and improve processing times, especially for Chinese applicants who have been waiting for years.

How to Navigate the EB-5 Visa Program: Working with the Right Experts

For individuals interested in applying for an EB-5 visa, it is crucial to work with experienced professionals, such as EB-5 Visa Consultants or an EB-5 Visa Attorney, who can provide guidance through the complex process. An EB-5 Attorney will help ensure that applicants meet all necessary EB-5 Visa Requirements, including investment in EB-5 Regional Centers or qualifying EB-5 investment projects.

Whether it’s choosing a project in a rural TEA or finding the best opportunities for EB-5 rural investment, working with the right professionals can make the difference in navigating the complex EB-5 processing time and ensuring a successful application. For those looking for expert advice, resources such as the EB5 Investors Magazine and reputable EB-5 visa consultants online can provide valuable insights into the latest developments in the program.

The Future of EB-5 Processing

As the demand for EB-5 visas continues to grow, particularly among investors from China, the U.S. immigration system faces a mounting challenge in processing a backlog of applications. While delays remain a significant issue, the implementation of the EB-5 Reform and Integrity Act of 2022, along with proposed improvements to the adjudication process, offers hope for quicker processing times and better service for investors. With the right guidance, EB-5 investors can still find success in their pursuit of U.S. residency through investment.

For more information on the EB-5 visa program and how to apply, visit authoritative resources such as the U.S. Citizenship and Immigration Services (USCIS), or consult with a qualified EB-5 Visa Attorney to ensure the best path forward.

Source:

https://www.eb5investors.com/blog/thousands-of-pre-ria-eb-5-visa-applications-still-pending-processing-data-shows/