Surge In Filing I-526 & EB-5 Applications

With the April 28, 2017 expiration deadline of the RC EB-5 statute (the regular/direct/self EB-5 investment statute does not expire), many investors are seeking to file their l-526s to lock in their investments at the current levels.

EB-5 Statute Extension

There were Congressional hearings recently at which a number of representatives stated that they wanted comprehensive EB-5 changes now, not an extension of the current statute with the budget continuing resolution (“CR”) to September 30th. However, most believe that the current statute will be extended to September 30, 2017 without change through the budget CR.

Audits

USCIS says that this year, they will conduct over 200 audits of RCs and projects.

New RFEs

USCIS has started to issue Requests for Evidence to EB-5 investors who sent funds sent to the U.S.via a “swap.” This usually involves a foreign investor in China giving funds to someone there, who then gives them a similar amount in the U.S. USCIS is questioning whether those involved in a swap are licensed in the overseas jurisdiction in which they operate. USCIS does not enforce other countries’ statutes, such as draft laws, etc. Two exceptions are that for EB-5 funds, USCIS requires (1) the purpose stated in an overseas bank loan be truthful and (2) any gift tax required for a gift (i.e. from a parent to a child) be paid [few jurisdictions have such a requirement at the EB-5 investment level, but a few countries such as Korea have heavy gift taxes].

EB-5 Backlogs Grow

The government processing of applications is slowing at almost all levels for the EB-5 program.

• I-526 petitions now average about 18 months. The official processing time has only advanced to September 27, 2015.
• I-829 processing is up to 30 months.
• I-924 for new RC and exemplars remains stuck at September 29, 2015.
• NVC processing of immigrant visas remains slow – about 6 months.