You are here[HOT] Existing problems with EB-5 Program, as of Feb. 2nd 2015
[HOT] Existing problems with EB-5 Program, as of Feb. 2nd 2015
We see following continuing problems with EB-5 Programs which USCIS has not yet solved, although USCIS keeps on stating that it is making efforts to address.
1. I-526 adjudication processing time is way too long. Over 14 months for non-pre-approved cases causes all kinds of problems. Even pre-approved EB-5 projects takes over 1 year. This is the number 1 problem. Some argue that EB-5 Program is full of fraudulent cases. In my opinion, this is completely false. I would say the EB-5 requirements are very onerous and hard to deceive USCIS, a lot harder than labor certification cases, marriage-based cases and NIW cases.
2. Limited EB-5 visa numbers which creates problems for Chinese EB-5 cases.
3. General trend that drives away relatively rich foreigners from getting green cards. There are many negatives with being green card holders now days.
4. Practically speaking, EB-5 projects are very different animals than normal investment vehicles. No EB-5 investor in the right mind would or should be pursuing EB-5 cases for the primary purpose of making money. It is a given that EB-5 investors pursue EB-5 cases for the primary purpose of obtaining permanent green cards. It is only AFTER they obtain permanent green cards can they (and should they) feel "settled down" to pursue other economic and business activities that will benefit USA. However, SEC laws and regulations unfortunately treat EB-5 projects as standard investment products which are subject to SEC regulations. It would be nice if SEC recognizes this reality that no one invests in EB-5 projects with the primary purpose of making good profits. That alone makes EB-5 project a distinctly different animal from the standard investment products. I am not espousing that SEC give a complete exemptions; but I AM espousing that SEC give some leeways for EB-5 projects that recognizes this factual differences.
5. The entire EB-5 Program is too dependent on Chinese EB-5 investors, which means without Chinese EB-5 cases, the entire EB-5 market is DEAD.
Congress should either get rid of the EB-5 Program or make it more attractive, so investors from all countries will want to pursue this Program, not just Chinese nationals.