You are here[HOT] Personal take on the current status of EB-5 Program
[HOT] Personal take on the current status of EB-5 Program
Let me quickly job down my personal take on the current status of EB-5 Program.
1. There are too many approved regional centers (over 420 as of February 2014) right now. It's way more than the 10,000 available immigrant visa number, which translates into around 3,000 EB-5 cases assuming an average of 3.3 persons for each family immigrating based on an EB-5 investment. That means over 400 RCs are competing for a mere 3,000 EB-5 cases. If each RC retains 8 EB-5 cases per year, that will be over the 3,000 EB-5 cases. Of course, not all RCs are operating or effective, so I would say there are around 30 "successful" RCs operating right now, dividing up a majority of the 3,000 EB-5 cases. Conclusion: Unless the Congress increases 10,000 IV number, there is going to be a back-log or retrogression of Chinese EB-5 cases.
2. Chinese EB-5 demand is going to continue increase for the foreseeable future, especially due to the termination of the Canadian Investors Program, but the state of global economies and other factors are contributing to the decrease in the non-Chinese demand for EB-5 projects. Increasingly, immigrating to the US has many down-sides for rich people around the world, especially for the non-Chinese Asian investors.
3. The slow adjudication processing times for I-526s is causing all sorts of potential problems and is very unfair to both the RCs and EB-5 investors.
4. There are going to be more and more SEC related issues and restrictions.
5. Without Chinese EB-5 investors, the entire EB-5 market will become dead.
6. You are going to see more of "huge" projects involving big development companies. It's going to be increasingly difficult for small RCs to succeed with small projects.
7. There are going to be more lobbying effort to count jobs outside the RC geographic area and also to add up part-time jobs to reach Full-time equivalent hours.
8. More Chinese emigration consulting companies are going to be setting up their own RCs to capture and handle the Chinese EB-5 clients themselves. Chinese emigration companies are going to demand more and more profits from RCs. As the number of RCs increase, the leverage of emigration companies abroad are going to increase.