“Encouraging global foreign direct investment will help
China now annually accounts for 85-90 percent of EB-5
industry stakeholders need to be relentless advocates for
to those cases filed in February 2014 and earlier. While
the United States compete for the opportunities that de-
usage per year. The growth has been so rapid and so fast
expanding visa capacity by any and all options available.
China is expected to continue to retrogress, other coun-
velop as emerging markets mature,” according to the U.S.
that the demand for EB-5 visas now outweighs the annual
Commerce Department.
supply of 10,000 that are available.
The benefit doesn’t stop at investment. EB-5 investors are
Mainland-born Chinese investors face an estimated six-
willing to risk their capital investment—the spirit that built
year wait to be issued a conditional visa (i.e., “green card”)
this country. A report by the Partnership for a New Amer-
to the United States. At the end of FY2016 Q2, there were
U.S. Immigration Visa Policy Issues and the
Chinese Backlog
ican Economy found that immigrant entrepreneurs estab-
over 13,200 I-526 petitions approved since February 2014
By Laura Foote Reiff
lished 18 percent of all Fortune 500 companies, for a com-
with 20,235 petitions pending with USCIS. Some quick
bined impact of $1.7 trillion in annual revenue, employing
math shows if about 85 percent of I-526 petitioners are
The availability of immigrant visas is
3.7 million workers worldwide.
from Chinese investors, the country will account for over
subject to arbitrary numerical caps
nationals have been backlogged
28,400 of those petitions. If we assume each has at least
imposed by Congress—limiting
between 5-10 years for quite some
In addition, the EB-5 investor family is well educated and
one family member that plans to immigrate with them, that
how many foreign nationals can
time. How can Congress address
successful; adding talent, financial capacity, and creativity
means over 56,800 visas need to be issued. Even if 10-
obtain these visas each year.
this backlog? Several ways that
to the U.S.
20 percent of those petitions are denied for some reason,
“They are going to contribute and succeed somewhere—
tries may also retrogress because of the overall demand
It is in everyone’s best interest, after all, in building these
for visas. Currently, there is a severe backlog of EB-5 peti-
bonds of economic friendship.
tions awaiting adjudication from U.S. Citizenship and Im-
for many Chinese EB-5 applicants, the
EB-2 and EB-3 categories for Chinese
have been proposed:
In the employment-based green
mand—and it has to be fixed before it’s too late.
card
category,
Congress
allots
140,000 immigrant visas (green cards)
perity has always depended on the hard work, sacrifice,
The implications of a long wait time can be detrimental to an
to be issued annually. The employ-
drive, and dreams of immigrants. Our future will depend
investor’s dream to provide a better life for his or her family.
ment-based categories are subdivided into
on them even more,” U.S. Chamber of Commerce Chief
Picking the right investment opportunity requires working
five preference categories:
Executive Officer Thomas J. Donohue says.
with professional financial, immigration, and legal advisors
It is in our national interest to spur investment in our com-
in the queue.
While retrogression is a new development
there would still not be enough visas to meet growing dewhy shouldn’t it be in the United States? America’s pros-
migration Services – by some estimates more than 25,000
- Recapturing unused immigrant visas: Estimated to be in the hundreds
of thousands, Congress could resolve
the EB-5 backlog issue creatively and as a
one-time event.
- Increasing the number of immigrant visa numbers for em-
to analyze how different investment offerings address EB-5
• EB-1: Priority Workers (Extraordinary Ability,
ployment-based categories. A more realistic market-based
specific issues that are the result of a lack of visa availability.
Outstanding Professors and Researchers, and
system would make sense.
Multinational Managers or Executives)
- Backlog reduction: A deficit reduction component that
munities and create jobs. However, so long as the extreme
backlog continues unaddressed, we are essentially turning
Investors must perform due diligence to understand these
• EB-2: Professionals Holding Advanced Degrees and
imposes a one-time man