The U.S. EB-5 Immigrant Investor Program has long been a powerful pathway for international investors to obtain U.S. permanent residency, also known as a Green Card, through investment. However, for those considering this option, now is a crucial time to act. Over the years, the program has evolved significantly in terms of costs, processing times, and requirements. If you’ve been thinking about applying for the EB-5 visa, the longer you wait, the more expensive and difficult it could become. Here’s why timing your EB-5 investment right now is critical.
The Growing Visa Backlog
The Rising Cost of EB-5: What Was $500K Is Now $800K
The Risk of Unexpected Changes to the Program
Rushed Filings and Looming Deadlines
EB5AN Can Help You Start the Process
The Growing Visa Backlog
One of the most pressing reasons to make your EB-5 investment now is the growing backlog of applicants. As the demand for U.S. residency continues to rise, so does the number of individuals applying for the EB-5 program. With more people in line, the waiting times for visa approvals have steadily increased, especially for applicants from countries with high demand, such as China and India.
To understand the scope of the issue, let’s look at the numbers. There has been a steady rise in EB-5 petitions over the years. This surge has led to more applicants than the available visa slots each year, creating a backlog, especially in the legacy “unreserved” categories. For countries with the highest demand, the wait could extend to years, if not decades, before applicants can receive their U.S. Green Cards.
The EB-5 Reform and Integrity Act of 2022 (RIA) created reserved set-aside visa categories to battle the issue of visa backlogs, which was a welcome solution. However, data shows that investors from India and China are on the verge of seeing the reserved categories also retrogressed on the State Department’s Visa Bulletin, which can once again translate into longer queues even in these reserved categories.
If you delay your investment, you risk joining this queue at a later stage when processing times could be even longer. For some applicants, waiting longer could mean missing out on the opportunity to bring their family to the U.S. or delaying their own future prospects in the country. Investing now allows you to avoid longer waiting times in the future, giving you a better chance of securing your visa more quickly.
The Rising Cost of EB-5: What Was $500K Is Now $800K
Another critical factor that makes now the best time to invest in the EB-5 program is the cost. Just a few years ago, the minimum required investment for the EB-5 program was only $500,000 for investments in targeted employment areas (TEAs). However, in 2022, the U.S. government modified the required minimum investment to $800,000 in TEAs and $1,050,000 outside of TEAs.
Although this change took place several years ago, there are still indications that the minimum investment amount could increase again. It’s important to consider that investment amounts are tied to inflation, and if costs continue to rise, you may find yourself having to invest even more than the current $800,000 (or $1,050,000 outside TEAs) in the future.
In addition to the higher investment amounts, the fees associated with the EB-5 program have also increased. The USCIS filing fee for Form I-526E has increased from a modest $3,675 only three years ago to $12,160 today. These fee hikes, combined with the rising investment amounts, make it financially advantageous to apply sooner rather than later. The longer you wait, the more you may need to spend to meet the program’s requirements.
The Risk of Unexpected Changes to the Program
EB-5 regulations are subject to change. Over the years, there have been several instances where new rules and requirements were introduced unexpectedly, causing a shift in how the program works. For example, the introduction of the new minimum investment amounts in 2022 caught many potential investors by surprise.
While it’s impossible to predict exactly what changes will occur in the future, history shows that the EB-5 program has undergone significant adjustments. As the U.S. government continues to revise immigration policies, changes could be made to the investment thresholds, eligibility criteria, or the general structure of the program. This is why delaying your decision may leave you vulnerable to potentially more restrictive policies that could affect your ability to qualify for the program in the future.
Another risk is that changes could be made that limit the number of applicants per country, or impose stricter regulations on source of funds processes. Therefore, investing now may protect you from these potential changes, allowing you to take advantage of the current program parameters before any further complications arise.
Rushed Filings and Looming Deadlines
Once retrogression is announced in the Visa Bulletin, investors already residing in the United States will have a narrow window of roughly three weeks to concurrently file their petitions before visa availability shifts in the following month. This change means that visas will no longer be immediately available, and investors will lose the chance to adjust their status. The result is likely to be a rushed process, with investors scrambling to prepare their filings at the last minute. This hurried approach significantly increases the likelihood of costly mistakes that could delay or even jeopardize their EB-5 petitions.
Last-minute filings can create another challenge: reputable EB-5 professionals may face a sudden surge in demand as other investors try to meet the same deadlines. With limited availability, it may be difficult to secure expert guidance when it is most needed. By acting now, investors can approach the process with a clear head, ample time to prepare, and the support of experienced professionals who can ensure a smooth and successful filing. Making this decision early removes the stress of looming deadlines and gives investors the best chance to avoid complications.
EB5AN Can Help You Start the Process
With the increasing demand for EB-5 visas, upcoming backlogs in the reserved categories, expenses that could potentially increase over time, and the risk of unpredictable changes to the program, there’s never been a more critical time to make your EB-5 investment.
Looking back just a few years ago, the minimum investment was only $500,000, with a filing fee of around $3,000. Today, you are required to invest $800,000 plus a filing fee of around $12,000. The reserved set-aside visa categories are still listed as “current” in the latest Visa Bulletin. But if you delay your decision, these conditions might change, and the waiting time for your EB-5 Green Card could be longer than expected.
If you’re ready to begin your EB-5 journey, schedule a free one-on-one consultation with our expert team today to secure your future in the U.S.
