09/05/2024
EB-5 visa program for foreigners seeking permanent residency in US and achieving American dream.
H1-B visa holders in the U.S. often aspire to obtain a green card and eventually American citizenship.
The proposed changes to H1-B regulations may disrupt the plans of many H1-B visa holders and students. (FE Online).
Piyush Gupta writes:
Foreigners immigrating to the United States are often in pursuit of the American Dream—a chance to succeed and build a better life. For many, this journey begins with the H1-B visa, a pathway that has become particularly significant for professionals.
More H1-B visas are granted to Indians than to those from any other nationality, reflecting their strong presence in the U.S. workforce. Currently, around 320,000 Indian professionals are employed in the U.S. under H1-B visas. These visas are reserved for highly skilled individuals, sponsored by companies operating in the U.S., who bring their expertise to drive innovation and growth in various industries.
H1-B visa holders in the U.S. often aspire to obtain a green card and, eventually, American citizenship.
Securing a green card unlocks numerous benefits that are not available to those on H1-B visas. Green card holders enjoy the freedom to work in any field or profession across the U.S., unlike H1-B visa holders who are restricted to specific employers and industries.
They can also travel to and from the U.S. without the visa limitations that H1-B holders face, allowing them to fully immerse themselves in the world’s most dynamic and vibrant culture. Additionally, green card holders and their families are eligible for in-state tuition at universities—a significant financial advantage, as in-state tuition is much lower than the rates paid by international students and the children of H1-B visa holders.
The new rules proposed by the U.S. Department of Homeland Security (DHS) may make it more expensive to renew H1B visas. Consequently, the new is limiting the opportunity for H1B visa holders to obtain a green card and become a US citizen.
New Proposed Rules May Make Renewing H1B Costly
The proposed changes to H1B regulations may disrupt the plans of many H1B visa holders and students. As part of the proposed changes, employers would have to pay USD 4,000 to extend an H1B visa. Earlier, this fee was only charged when an employer sought a fresh H1B visa or when H1B visa holders changed employers.
Furthermore, as per proposed regulations by DHS, a skills-first approach may be used to grant H1B visas. Companies that employ many H1B visa holders and rely on visa extensions may face significant financial pressure. Such companies may reconsider their hiring strategies regarding foreign employees.
In this scenario, many H1B visa holders’ path to a green card and US citizenship may hit a roadblock. However, the EB-5 program offers H1B visa holders a way to continue working in the US and a quick path to a Green Card and US citizenship. H1B visa holders who want to enjoy everything the US offers and live their American Dream should consider transitioning to the EB-5 visa.
What is the EB-5 Program?
The EB-5 program, initiated in 1990, allows immigrant investors to secure U.S. permanent residency through job creation. While the original program required participants to establish small businesses that created at least ten jobs for U.S. workers, the current iteration primarily operates through ‘regional centers.’ These entities pool capital from multiple immigrant investors and utilize indirect job creation models to meet the program’s requirements.
Currently, the minimum investment in an EB-5 program is $1.05 million. However, there is an exception to that rule. If the EB-5 project is based in a rural area or one that is experiencing high unemployment, that investment is lowered to $800,000. Throughout most of EB-5’s history, most immigrant investors have leveraged the lower investment amounts.
EB-5: The Benefits of Concurrent Filing
H1B visa holders who transition to the EB-5 enjoy the benefits of concurrent filing. In 2022, the Reform and Integrity Act overhauled the EB-5 program allowing immigrant investors to concurrently file their Adjustment of Status if visas are available. H1B visa holders who file concurrently and receive Advanced Parole can leave the US for short and medium durations and reenter without worrying about maintaining an underlying visa or abandoning an adjustment.
Also, with adjustment of status, prospective immigrants are entitled to an unrestricted Employment Authorization Document (EAD). Immigrants who receive an EAD can work in an area of their choosing, whereas when they worked under an H1B visa, they were tied to a specific industry and employer. EAD holders may get a social security number and open a bank account.
What does the Drop in EB-5 Visas to Indians Mean
From 1st October 2023 to 31st May 2024, there was a 22 per cent drop in the number of EB-5 visas issued to Indian investors. Only 512 EB-5 visas were granted to Indian investors during this period. This drop is striking, considering that in these eight months, there was a 42% increase in EB-5 visas over the same period in 2022-23. There are several reasons for this drop. For instance, there is a backlog in the US consulate in Mumbai and a shortfall of officers trained to adjudicate EB-5 cases.
Conclusion
EB-5 program remains a favorable path for investors aspiring to secure permanent residency or a green card in the U.S. This program not only allows them to invest and create jobs in the U.S., but also paves the way for their American dream.
The added advantages of concurrent filing under the EB-5 program, such as the ability to travel without visa restrictions and work in any chosen field, make it a viable and attractive option for those aiming to live and work freely in the U.S.
The continued relevance and appeal of the EB-5 program are evident in the fact that many professionals are likely opting for EB-5 visas through Adjustment of Status with USCIS. Therefore, for those with aspirations of establishing a life in the U.S., transitioning to the EB-5 visa could be a strategic step towards achieving this goal.
(Author is Vice President, India and Middle East, CanAm Enterprises)
