Elements of the EB-5 investor visa program are under review. U.S. Citizenship and Immigration Services stated that each regional center must be reauthorized. Current projects cannot move forward until the centers are reauthorized. These centers support the EB-5 program, encouraging foreign investment into the U.S. and streamlining the process of approval.

The EB-5 investor program allows foreign investors to provide needed capital in exchange for a green card. The requirements include a minimum investment of $500,000, a specific number of new jobs created, and other elements. The regional centers support the investors and the companies. Investments that are supported by these centers can count both direct and indirect jobs created to satisfy the new job requirement.

The EB-5 program has been authorized in successive extensions until March 2022 with the Integrity Act. That Act extended the EB-5 program for a five-year period.

A lawsuit has been filed in California claiming USCIS lacks the legal basis to require all regional centers to complete a reauthorization process. Current projects are in limbo, with the impact of the reauthorization potentially causing long-term damage to existing programs, job creation, and related economic effects.

Simultaneously, lawsuits are being filed as some EB-5 projects are found to be a fraud. See the highlights of a few here:

  • A group of immigrant investors filed a fraud suit. The Federal judge limited the amount of the case to $100 million but is allowing the case to proceed. The group claims the developer illegally subordinated their investments.
  • A separate group of investors is pursuing efforts to look into the personal finances of developers of a failed project in Chicago, the Carillon Tower. The group is looking for a $50 million settlement who have not received their investments after the project was stopped.
  • An individual was sentenced to five years in prison and over $8 million in restitution for their role in an $85 million EB-5 investment in a Vermont biotechnology facility.

Although the EB-5 program continues to face challenges not only from the facilitation process but through to risk of fraud, the program provides investment sources not otherwise available. If you have questions about the EB-5 program or any other immigration-related issues, contact us at ILBSG.

EB-5 USCIS