Tuesday, April 14, 2015

State Department announces retrogression of EB-5 visa for Chinese nationals

I read an article online (see link ) announcing retrogression of visa numbers in the EB-5 visa category to May 2013. This means that only those who filed visa petitions after May 2013 are probably going to have to refile once the regional center program expires in September 2015.

What are the practical effects on EB-5 visa investors who invest in regional centers?
The obvious effect will be the fact that as the regional centers are anyway expiring in September, they will probably need to invest in a Direct Investment Business. Please check with your immigration attorney to get accurate advice. This retrogression only applies till September, as the new visa year and new tranche of visas is available in October. However, as we all know, regional centers are now as good as gone with not even 2% of Congress willing to be associated with the regional center renewal effort.

What are the options available to the Chinese investors?

Chinese investors need to ask their lawyers if an L1A + EB-1C visa would work for them. It is similar to the EB-5 visa, but requires a smaller investment amount and does NOT have the restrictions

Does the retrogression affect citizens of other countries?

NO. As per the State Department, it only affects Chinese citizens.

Who else does the retrogression affect?

It definitely affects regional centers as it seems quite likely that they will never get any EB-5 visa investor funds released to them ever again, as by the time the retrogression is over, regional centers will already be out of the EB-5 visa program.

EB-5 visa investors need to remember that the ONLY safe way to get approved is through Genuine Direct Investment Businesses.

Here are some of the critical reasons that EB-5 visa investors should ALWAYS choose Genuine Direct Investment Businesses and avoid regional centers:
A.     In a Genuine Direct Investment Business, it is quite unusual to encounter fraud or conflict of interest. This alone is THE biggest reason why EB-5 visa investors usually experience capital loss if they opt for regional centers or unsafe Direct Investments (such as Voodoo or Marcos Pizza), while those who opt for Genuine Direct Investment Businesses usually NEVER experience capital loss.
B.      EB-5 visa investors who choose Genuine Direct Investment Businesses usually earn annual ROI of 15% to 40%, while those who select regional centers usually earn 0-2% annual ROI.
Genuine Direct Investment Businesses offer easy exit strategies to EB-5 visa investors while those who invest in regional centers experience TERRIBLE exit strategies. 
C.      Regional Centers usually commit securities fraud and securities law violations while this is usually unheard of in Genuine Direct Investment Businesses. 
D.     EB-5 visa investors usually get capital gains if they invest in a Genuine Direct Investment Business and almost NEVER get capital gains if they invest in a regional center. 
E.      EB-5 visa investors in Genuine Direct Investment Businesses usually see faster processing and approval of their petitions, while it takes much longer for EB-5 visa investors to get their immigrant visa through regional centers. 
F.      EB-5 visa investors in Genuine Direct Investment Businesses have a higher chance of getting their permanent green card, while those who opt for regional centers have a lower chance of getting their green card. 

If you are a business owner or high net worth individual interested in migrating to the US using EB-5 visa or L1A + EB-1C visa, please contact us for a free consultation. We offer a turnkey solution and have a 100% fee refund guarantee if a client is denied due to our fault.

Mohammed Shaikh, MBA (Accounting), CFE, Licensed Business & RE Broker (CA & FL)
Online Phone: +1 407 535 0616

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