Wait period for Indians under EB-5 visas may extend to 7 years in 2019

Rank 2 | USA | Number of migrants hosted: 51 million (Image: Reuters)

The US Citizenship and Immigration Services (USCIS) has extended the EB-5 visa programme for immigrant investors until December 21.

However, the wait period for a green card for Indian applicants to this visa category could extend to seven years in 2019 from three years now.

In an interaction with Moneycontrol, Ashish Saraff, MD (South Asia & Middle East), AVG America Investments said, “The waiting period is on a steady rise. Those who apply towards the end of 2019 may see up to 7 years wait to get a green card. So, it is better to plan ahead.”

AVG America Investment provides a range of financial services including EB-5 services to clients. The group is run by the Indian-American Shalabh Kumar family. His son Vikram Aditya Kumar is the Founder and CEO of the firm. Shalabh Kumar was one of the largest financial backers of the US President Donald Trump for his presidential campaign.

Planning early

In markets like China, he said applicants start planning for EB-5 visa as soon as the child turns ten years. This is to ensure the process is completed before they move to the US to pursue higher education.

Saraff said for Indian clients, it is also crucial they are transparent on the source of funds. He said about 20-30 percent applications from India are rejected, the primary reason for which is improper disclosures on the fund sources.

Each application runs to about 1,000 pages is also reviewed by a legal expert. The exact source of the funds has to be detailed in the application. Further, background checks are also conducted to ensure that individuals are not looking to immigrate to the United States for unlawful purposes.

Earlier, there was a provision where the authorities could request further evidence in case of any discrepancies. Now, the proposal is rejected and the applicant will have to re-apply.

How much could students with EB-5 visas save?

At UC Berkeley for instance, the savings for an undergraduate programme once an individual gets a green card could be $47,256 for a four-year course. This is because the fee structure for local and international students is different at the educational institutes.

China and India top the list of foreign students studying in the US. In the academic year 2017-18, there were 350,755 Chinese students and 186,267 Indian students pursuing an education in the US.

For students wanting to work in the US after their education, the EB-5 visa is a better option than H1-B that requires sponsorship by companies.

What is the EB-5 programme?

The USCIS allocates 10,000 visas every year under the EB-5 programme or Immigrant Investor Program to immigrants and their families, whose qualifying investments result in the creation or preservation of at least ten full-time jobs for US workers.

Of the total, 3,000 visas are specifically allocated to immigrants who invest through the USCIS-designated regional centers.

EB-5 provides foreign nationals with the opportunity to become conditional residents for a period of two years upon making an investment of $1 million, or $500,000 in a designated Targeted Employment Area, in a new commercial enterprise.

To be sure, this is only if the entrepreneurs make the necessary investment in a commercial enterprise in the United States, and plan to create or preserve 10 permanent full-time jobs for qualified US workers.

The programme is named EB-5 for the name of the employment-based fifth preference visa that participants receive. The US Congress created the EB-5 programme in 1990 to stimulate the United States economy through job creation and capital investment by foreign investors.

Asian countries see a rise in demand

Saraff said there is a rise in the demand for EB-5 visas from Asian countries. AVG America Investment is now looking to scale up operations in South Asia, Middle East as well as North Africa.

In 2019, AVG America Investment is also looking to set up a special purpose vehicle to allow similar permanent visa opportunities in Europe. With an investment limit of 500,000 euro, the permanent resident programmes in Europe also offer similar opportunities.

Consolidation ahead

Saraff said a wave of consolidation among EB-5 service providers is expected as the US government is tightening rules around compliance.

“Smaller players investing in dubious projects could go out of business as the authorities are striking down on errant behaviour by entities,” he added.