India to experience rise in E5 visa demand ahead of fee hike to be effective on 21st November 2019

2024-04-14 06:26:46 Business

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Delhi/NCR, August 2019: After a lengthy period of anticipation and uncertainty, the US government has confirmed that the new minimum investment level for EB-5 will be $900,000. For the first time since its inception, the EB-5 Program is expected to increase in price on November 21, 2019.

While there are many avenues the industry may look at to delay or alter these changes, there will certainly be a wave of increased I-526 filings over the next four months throughout the world. This is especially true for India, as not only is there an impending price increase, but the visa wait time for Indians is also growing. In spite of the changes, the EB-5 visa remains one of the fastest and most straightforward routes to a Green Card.

Aspiring immigrants seeking to lock in the current $500,000 price should consider acting soon if they are sensitive to the new potential price increase. It takes a US immigration attorney an average of two months to document the source of funds for Indian EB-5 applicants, which narrows the window of time available.

Mark Davies, Global Chairman, Davies & Associates LLC commented, ?There is a particular sense of urgency in India where retrogression delays were announced last month. Anyone interested in an EB-5 visa should prepare an application as soon as possible to maximize the chances of locking in the current rate, as well as assure the best possible spot in the queue. The exact length of the retrogression delay in India remains unclear, but we suspect this to be beyond four years, although pending legislation could bring some respite.?

The demand for EB-5 has skyrocketed in India in a very short space of time, and the country reached its annual quota of 700 EB-5 visas in June, more than three months before the visa year ends. The 80% increase in the price is less significant than the industry had been expecting. The original plan was to increase the price to $1.35 million to take full account of inflation since the program started in the 1990s. In the end, however, the lower $900,000 figure was chosen in order to maintain the differential between the prices of investment placed in an area of high unemployment and an investment outside of these so-called Targeted Employment Areas (TEAs).

The minimum investment made outside of a TEA is set to increase to $1.8 million from $1 million in November, and the definition of what constitutes a TEA is likely to get stricter.

The new rules switch jurisdiction over who can determine the geography of a TEA to the Department of Homeland Security from individual states, which had, in some instances, been gerrymandering to allow EB-5 investments to flow into wealthy areas with robust employment.

Mark Davies suggests that it is always important to conduct due diligence on a Regional Center and their projects, especially to ensure that the projects would qualify under stricter TEA rules. A good Regional Center would be able to explain the potential implications of the new rules on their project with a client.

The combination of retrogression and a fee hike is likely to cause a rush to file in India over the next few months. This means the queue is only likely to get longer. There is a possibility that the annual country quota might be doubled to 1,500 visas, which would serve to halve the waiting times.

Sanjay Mistry, Chief Marketing Officer, Davies & Associates added, ?For those who can afford to wait a little longer and can afford the higher price tag, it might be less stressful to wait until after November when demand normalizes again. For example, families considering EB-5 as a route to a US education for younger children may have more time depending upon the children?s ages. While waiting would allow for a less rushed application, it would also mean that more money would be tied up in the program for longer. This would make it more vital than ever to choose a reliable Regional Center with a proven track record to mitigate any risk to your investment and getting your funds returned along with your Green Card.?

For Indian investors who need to be in the United States sooner, there are other options for living and working in the United States on a non-immigrant visa while on the EB-5 waiting list for permanent residency. This includes opening a new branch of an existing Indian business in the United States or moving there to own and operate a franchise business. The right way is to consult an immigration attorney to understand all the pathways open.

About Davies & Associates, LLC

Davies & Associates, LLC is a full service U.S. immigration law firm headquartered in New York City, USA with offices across the globe. The firm specializes in providing innovative and customized immigration solutions to a large number of clients from all across the globe.

With an exceptionally talented team of lawyers drawn from the ?top 10? American law firms and leading ivy-league schools, Davies & Associates, LLC primarily focuses on immigration law. Over time they have established themselves as industry leaders for US immigration. They are well known for their industry leading client services and obtaining remarkable results.

They are licensed to practice law in multiple international jurisdictions with offices based in strategic locations around the world. The firm represents a wide range of clients such as multi-national corporations, mid and small-sized businesses across all industrial sectors, investors, individual professionals, entrepreneurs as well as families. Davies & Associates, LLC has a dedicated India and South East Asia team which comprises of dual qualified attorneys licensed to practice law both in India and the United States.