Posted by GCBI Team on March 18, 2020
On March 13, U.S. Citizenship and Immigration Services (USCIS) held a public engagement meeting to discuss their new “visa availability” approach to processing applications — prioritizing EB-5 applicants from countries that are not backlogged. A positive is that USCIS will look at the visa bulletin Chart B, and not chart A, to make that determination. At the moment, that means only China will be negatively impacted.
new USCIS processing comes into effect March 31, 2020. It will apply to all new
and existing petitions that are not yet assigned to adjudication.
It will replace the “first in, first out” processing that USCIS has been using to this point. Immigration lawyer, Carolyn Lee, writing in an IIUSA article about the engagement meeting, notes that USCIS has not been strictly adhering to the “first in, first out” system because it has been grouping EB5 investment petitions by new commercial enterprise, to avoid duplicate adjudications.
will be referring to Chart B, Dates For Filing, rather than Chart A, Final
Action Dates, to determine which countries have visa availability and which do
not. At the time of this publication, using Chart B only excludes China — India
and Vietnam are current.
expert Suzanne Lazicki observes that using Chart B for the new visa availability
approach to processing creates a “chicken and egg situation” due to the
following: under the current system, the Visa Bulletin changes according to
visa demand that is determined by visa approvals; but the new approach will
have visa adjudications being determined by the Visa Bulletin.
The visa availability approach will be implemented to help EB-5 petitioners from countries that have visa availability, according to Visa Bulletin Chart B. It should reduce the number of “leftover” visas from countries that are not over-subscribed. Theoretically, this should mean faster processing for such applicants. USCIS states that the new system will better align with the original Congressional mandate of the EB-5 program and will “increase fairness” for EB5 green card investors from underrepresented countries.
Lee comments that, “on its face, there is plain sense in this.” She notes that
with the example of a German investor and a Chinese investor both filing on the
same date, it allows resources to be more efficiently used on the German
investor who may have a visa number issued — while the Chinese investor does
Charles Oppenheim stated that only China may see a decrease in available visas before FY 2022. The Chinese Green Card by investment investor population will have to endure longer waits in the future as there will be fewer “leftover” visa given to oversubscribed countries. Caroyln Lee points out that for China to really return to the EB-5 market, statutory change is needed.
this time, both countries are “current” according to Chart B of the Visa
Bulletin and thus will benefit. But Lazicki points out that these two
retrogressed countries will “eventually be held back by VAA [the visa
availability approach] since the number of pending I-526 from Vietnam and India
will exceed the annual visa limit.”
will this happen? Lazicki, who is renowned for analysing processing timeliness in
spite of the lack of transparency from USCIS, further offers two possible
scenarios that could happen to these two countries. In one scenario, she says
if many Indian and Vietnamese I-526 petitions are processed and approved, many
visas applications will be filed thus creating excess demand that will result
in the Department of State putting in cut-off dates in Chart B. And that will
mean Indian and Vietnamese I-526 petitions will no longer be available and
assigned for adjudication.
In a second scenario, Lazicki states that if USCIS continues to process Indian and Vietnamese USA Green Card petitions at a low rate, there will be a low demand from those countries for visas, and those countries will stay current on Chart B. Lazicki has inferred from Charlie Oppenheim’s comments at the engagement that USCIS foresees the second situation to occur.
Lazicki goes on to say that in either scenario the new visa availability approach should only allow USCIS to process the number of Indian and Vietnamese I-526 petitions that would result in a year’s worth of EB5 USA visas — 350 Indian and 250 Vietnamese adjudications per annum. With current country caps in place, she tells us this means in practical terms long waits for Indian and Vietnamese I-526 applicants as the most recent numbers show us there are 2,500 Indian I-526 petitions pending and 770 Vietnamese.
this situation is also impacted by the demand from the rest of the world.
Lazicki reminds us that demand from non-retrogressed countries has been low and
will likely to remain that way with increased investment amounts. Therefore,
she says, Chinese, Indian, and Vietnamese I-526 adjudication will only be
limited to the degree that USCIS will maximize the I-526 adjudication numbers
from other countries.
Caroyln Lee points out a further negative for EB5 Green Card investors from retrogressed countries: If such an investor requires an I-526 approval to preserve their priority date because of a material change in their business plan or due to EB5 regional center termination, a delayed approval because of the new system “could be prejudicial indeed.”
expedited requests from any country will continue to be promptly adjudicated. Petitioners
from countries that are negatively impacted by the new processing approach have
a potential solution: if their spouse is from a country with visa availability,
the petitioner should email USCIS detailing their situation.
from the circumstances listed above, petitioners may not opt out of the new
visa availability approach. And the new approach is expected to be used
When will the industry feel the impact
of the new system?
Charlie Oppenheim stated that the number of available investment Green Card visas would not change for the next 12-18 months.
Will country caps change or visa
new visa availability approach will not mean a change in overall visa numbers
or country caps. And, just as before, the policy of unused visas going to
oversubscribed countries will remain the same.
During the public engagement meeting, Sarah Kendall did not offer answers about the I-526 petition backlog. She repeated previously published statements about low I-526 processing in 2019: the slowdown was impacted by the mandate to find program EB 5 immigration fraud and abuse. Such multi-agency measures are “absolutely vital.”
Regarding processing efficiency, she also gave some optimistic EB5 news: “With a lot of the infrastructure development now behind us, IPO is better situated to improve productivity. In fact, preliminary data for February shows a step in the right direction.”
interprets Kendall’s remarks about integrity measures and hints at recent improvement
to mean there will be some minor improvement to processing times, especially
with new protocol being implement and training being concluded.
Read Lazicki’s blog on the public engagement meeting
Read Carolyn Lee’s IIUSA on the meeting
By GCBI Team
Restructuring your NCE operating documents for redeployment
Investor options with troubled projects
By GCBI Team
Before moving these private placements into the data room, you must complete this
Investor Questionnaire. It asks about your education, business
experience and financial condition.
GreenCardByInvestment.com is committed to protecting and respecting your privacy, and we’ll only use your personal information to administer your account and to provide the products and services you requested from us. By registering with us, you agree that from time to time, we may contact you about our products and services, as well as other content that may be of interest to you.
Wait, I have an account
You account password has been reset. Please login to continue.
We have sent you a reset password link on firstname.lastname@example.org. Please use that link to set a new password.
Congratulations! Your request for due diligence has been forwarded to EB5 Diligence.
They will contact you shortly.
Please Login or Register