Leveraging EB-5 quotas for faster route to US green card
6 Nov 2024, By Theja Ram - Content Director & Senior Manager Servicing
6 Nov 2024, By Theja Ram - Content Director & Senior Manager Servicing
Most people want a U.S. green card, and yet many find it particularly challenging to navigate the complex immigration processes, slow processing at embassies, and the numerous regulatory norms that need to be met. In 1990, to benefit both citizens of the United States, while allowing foreign nationals to obtain permanent residency, Congress introduced the EB-5 visa category. Meant to bring foreign investment into the country and create jobs, the US government allocated 10,000 visas annually to the EB-5 category. People willing to invest between $800,000 to $1,800,000, while creating a minimum of 10 jobs in the US, become eligible for the EB-5 visa, the fastest route to a green card. More recently, in 2022, Congress reserved 20% of EB-5 visas for investors that put their money into rural areas, 10% for investing in projects in high-unemployment areas, and 2% for infrastructure projects. These new quotas have now become the fastest route to securing a green card. Here’s how Indian investors can benefit from it.
According to the United States Citizenship and Immigration Services (USCIS), an EB-5 investment can fall under the targeted investment area (TEA) if the project falls under one of two categories. The first is if the investment is made in employment-generating projects in rural areas, and the second is in areas with high-unemployment rate. This quota was introduced to encourage job creation and stimulate economic growth.
By investing in a rural targeted employment area project, Indian investors only need a minimum investment of $800,000, while investors who want to put their money into urban areas would have to shell out a minimum of $1.8 million.
While the application process for rural TEA projects is the same as that for urban investors, those investing in the reserved categories qualify for priority processing of the I-526E form, which is the initial immigrant application. The I-526E form can be adjudicated in a matter of months, not years, making it the fastest route to securing a green card.
In fact, many investors in reserved category EB-5 projects receive I-526E approval within months, while other forms of investment would result in longer waiting periods. This makes it easier for investors to live, work, and study in the United States, while enjoying the freedom to travel within the country or internationally.
For Indian investors, who have a minimum understanding of the U.S. real estate market, and don’t have the capacity to travel frequently to the US to oversee projects, the best route to investing is through a real-estate company that has a track record of developing regional center projects that generate employment, as prescribed by USCIS. This is ideal for Indian investors, as a trusted partner, with experience in the real estate market, will ensure that the right TEA is chosen, to ensure both job creation and profitability. Such an endeavor strategically positions investors to achieve the best rent premium along with optimized construction costs.
Additionally, the process of making the investment is simplified, with investors having to do minimal work, all while gaining easier access to the EB-5 visa. Additionally, partnering with a real-estate company that has extensive networks and credibility with the USCIS, ensures the visa application process sails smoothly.
According to the National Association of Realtors in the U.S., foreign investment in the U.S. real estate market has dropped significantly — both in the commercial and residential segments. This can be largely attributed to rising property costs, rising interest rates and the inability to obtain financing.
However, towards the end of 2024, the Fed is expected to reduce interest rates to start coming down for multifamily developments, making the market more favorable to Indian investors. Just like there are multiple benefits to EB-5 real estate investments, they come with some drawbacks that must be considered before investing. This includes the risk of fraudulent schemes, excessive local administrative fees, and immigration risk in selected projects. However, these can be successfully avoided with an informed decision about the US real estate market and its dynamics.
Partnering with a real estate investment company can ensure that all development projects utilize the most cost-effective approach to offset any potential inflationary costs. With the overall economic climate expected to improve over the next couple of years, Indians can benefit from diversifying investments, all while securing a green card quickly.
Making informed decisions can offset risks of bad bargains. The importance of reliable partners cannot be stressed more as they bring to the table — transparency and a track record of successful project completion and ROI. Job protection must also be considered a primary factor in real estate projects, if investors are going after the EB-5 visa – especially if the investor decides to use the services of regional centers.
Recent legislative adjustments have underscored the industry’s commitment to fostering integrity and accountability within the EB-5 program. The new quotas are a win-win for both US citizens and foreign nationals seeking green cards. By leveraging the quotas, Indians can speed up their process of securing permanent residency in the US, while diversifying their investment portfolio.
The thought leadership article was crafted by a senior writer of Star Squared PR. Do reach out to us to understand how you could build credible thought leadership content for your brand.
