EB-5 CHINA QUOTA MOVES & EB-5 TEA LETTERS

EB-5 CHINA QUOTA MOVES:

The Department of State has announced, effective July 1, 2015, the EB-5 China quota will progress from May 1, 2013 to September 1, 2013. Thus, Chinese investors with an approved I-526 filed before September 1, 2013 will have a current priority date and can obtain a visa number for immigration.

EB-5 TEA LETTERS:

Most state TEA letters are valid for one year. If the state releases new unemployment data before the TEA letter expires, is the letter still valid after the new data is announced? The answer is not clear. A USCIS Request for Evidence (“RFE”) stated:

“Thus, the letter is not sufficient evidence that the project’s location experienced high unemployment based on the most recent publicly available employment statistics at the time the Form I-526 was filed…”

“The letter must meet the requirements of 8 C.F.R. § 204.6(i) and also utilize the most recent publicly available employment statistics which would be for the [last calendar year].” (underlining added)

Most EB-5 experts believe that USCIS policy requires the project be in a TEA at the time of investment or filing the I-526, and if the most recent data does not prove the project is in a TEA at that time, the state’s letter is void.

If funds are in an escrow account and TEA data may change, it is best to file the I-526 or move the funds out of the escrow account to the project before new data is released.

There is proposed legislation to make TEA letters valid for 2 years. As one developer recently told me, “It is extremely difficult to locate a project, finalize the plan, obtain other financing, supporting documents, market the project, and get all investor funds in and file I-526s within one year.”