How Does the EB-5 Process Work for Nationals of Low-Demand Countries?

The EB-5 Immigrant Investor Program has long been seen as a way for high-net-worth foreign nationals to become U.S. residents. While most of the attention has been focused on applicants from oversubscribed countries like China and India, nationals of lower-demand countries can still benefit greatly from the program—especially so with the recent changes from the EB-5 Reform and Integrity Act of 2022 (RIA).

This article will explore how the EB-5 process works for investors from low-demand countries, the advantages they have, and why now may be the best time to apply.

What Is the EB-5 Program?

The EB-5 program is a way for foreign nationals to get a U.S. Green Card by investing in job-creating projects in the United States. To qualify, investors need to meet certain criteria, which include making a minimum investment of $800,000 in a targeted employment area (TEA) or $1,050,000 outside of a TEA. The investment also has to remain “at risk” for at least two years and must create at least 10 full-time jobs for U.S. workers.

Historically, this program has been popular among investors from countries like China and India, where high demand has led to visa backlogs. For a variety of reasons, though, nationals of low-demand countries now find themselves in an advantageous position as the program evolves.

How the EB-5 Process Differs for Nationals of Low-Demand Countries

Investors from traditionally lower-demand countries—such as the Philippines, Sri Lanka, Canada, and Turkey—face fewer obstacles when applying for the EB-5 program compared to investors in oversubscribed countries like China and India. These oversubscribed countries experience visa retrogression in certain categories, which is a process where the U.S. Department of State imposes cutoff dates to control the number of visa applicants.

Low-demand countries, however, rarely face retrogression issues. This means the EB-5 process can be quicker and smoother for nationals from these regions, especially with the introduction of set-aside quotas under the RIA.

Changes Under the EB-5 Reform and Integrity Act of 2022

The RIA introduced several changes meant to improve the integrity of the program, making it more secure for investors. These changes are important for nationals of low-demand countries for a number of reasons, including:

• Concurrent filing: Investors who are already in the U.S. on nonimmigrant visas can now file Form I-526E (to start their investment-based Green Card process) and Form I-485 (to adjust their status to a lawful permanent resident) at the same time. This allows investors to legally live, work, and study in the U.S. much sooner than before. However, a visa must be available to the investor to benefit from this provision. Investors from low-demand countries are much more likely to have visas available to them in any category.
• Faster processing times: Investors—particularly those in rural projects—are seeing faster processing times, with some Form I-526E approvals happening within 12 months. This is a huge improvement for applicants from low-demand countries who might already benefit from favorable processes because of lower visa demand.

The Impact of Retrogression and Visa Backlogs

Visa retrogression happens when the number of qualified applicants from a specific country exceeds the number of available visas. Countries like China and India face significant backlogs in the unreserved category because of their high demand for EB-5 visas, leaving investors from these countries waiting for long periods of time, sometimes even years.

Nationals of low-demand countries, however, rarely face these issues. The Visa Bulletin typically focuses on managing cutoff dates for oversubscribed countries, while the rest of the world often faces little to no backlog. The new set-aside categories currently do not have backlogs for investors of any nationalities.

That said, retrogression is always possible, particularly in categories like high-unemployment TEAs, where visa demand might soon exceed the available supply. Still, slow processing times and other factors might affect this risk, and other project types, such as rural projects, don’t appear likely to face any similar issues.

Advantages for Nationals of Low-Demand Countries

Investors from regions with no current retrogression—including Vietnam, South Korea, Brazil, Taiwan, and Hong Kong—have an advantage in the EB-5 process if they invest now. As mentioned above, they are less likely to face long wait times or backlogs compared to applicants from oversubscribed countries like China and India, making the whole process quicker and smoother.

Additionally, the introduction of set-aside quotas has further facilitated the process for EB-5 applicants from low-demand countries. With no visa availability issues to worry about, they can choose any EB-5 visa category that suits their financial and immigration goals, including high-unemployment TEA projects.

How EB5AN Can Help Investors

Applying for an EB-5 Green Card can be complex, but nationals of low-demand countries have a clear opportunity to benefit from a smoother, faster EB-5 process. To increase your chances of success, it’s important to work with EB-5 industry professionals who understand your unique situation and can guide you according to the specifics of your nationality.

At EB5AN, we’ve helped more than 2,300 families from over 60 nationalities relocate to the United States as lawful permanent residents. Our expert team offers first-rate, low-risk EB-5 regional center projects and maintains a 100% USCIS project approval rate to date.

If you would like more information on how to apply for the EB-5 program or would like our expert opinion on your specific case, feel free to book a one-on-one call with our team.