EB 5 Set Aside Visas: A New Pathway for EB 5 Investors
One of the most significant changes brought about by the EB-5 Reforms and Integrity Act of 2022 was the introduction of Set-Aside Visa categories for investment in certain qualifying projects. This is excellent news for investors from countries like India, China, Vietnam, etc., where the demand for the EB-5 Visa program is high, and thus, the waiting period for getting the visa is very long. These investors can now jump the queue and move to the U.S. quickly by investing in a project with reserved visas.
What are the EB-5 Reserved Visa or EB-5 Set Asides Visa Categories?
The EB-5 Reform and Integrity Act of 2022 made some significant changes in the EB-5 Visa Program for foreign investors seeking permanent residency in the US by introducing EB5 set-aside visas, also known as reserved visas, for EB5 rural projects, high unemployment, and infrastructure projects.
These EB5 set-aside visas offer lower investment thresholds of $800,000 into the Target Employment Area (TEA) compared to $1,050,000 for non-TEA areas. For foreign investors seeking permanent US residency, the EB-5 Visa program offers a unique green card path in today’s backlogged system.
This EB5 priority processing category has been introduced to address the delay in processing EB-5 visas for applicants from retrogressed countries while stimulating economic development in rural and high-unemployment areas.
How does Visa allocation work?
Each fiscal year, the U.S. government allocates limited visas (approx. 10,000) to the EB-5 program. These are then distributed among various countries. Currently, seven percent of visas are allocated to each country, regardless of size. So, if there are 10,000 visas allocated to the EB-5 program, each country will get 700 visas. This includes the principal investor as well as his family members. So, suppose the number of applicants from a particular country is high, and the demand for visas, including that for family members, is more than the available quota for the year. In that case, they will have to wait in the queue till new visas are available. This is what is technically called Visa Retrogression.
- The US government allocates a limited no of visas to EB-5 program every year
- These are distributed amongst various countries.
- 7% of the total visas are allocated to each country, regardless of size.
- If 10,000 visas are allocated to the EB-5, each country will get 700 visas.
- This includes the investors as well as their family members.
- If the total number of applicants and their family members is more, they will have to wait until the visas are available.
- This is technically called visa retrogression
Qualification Criteria for EB-5 Set Aside Visas Categories?
- Rural project qualification: A project will qualify as an EB5 rural project if it is situated in an area with a population of 20,000 people or less. It also must be located outside the Metropolitan Statistical Area. This is to promote investment in less densely populated areas to stimulate economic growth and job creation in that region.
- High Unemployment Area Qualification: If the EB5 project is located in a region where the unemployment rate is at least 150% of the national average, then it will qualify under this category.
- Infrastructure project qualification: A project must be administered by a governmental entity and involve construction works essential to the US government.
Quotas for EB-5 Set Asides Visas Categories
The EB5 Reforms and Integrity Act has also set quotas for the EB5 set-aside visas. A total of 32% of the total visa pool each year is reserved for this category. Following is the break-down for each category.
● Rural Projects: 20% of the total visas are reserved for EB5 rural projects each year out of the total EB5 pool.
● High Unemployment area: 10% of the EB5 visas are reserved for people investing in a project in a high unemployment area.
● Infrastructure Projects: The least number of visas are allocated to infrastructure projects, which is 2% of the yearly total visas allocated for the year
What are the benefits for EB-5 investors?
EB-5 Set-aside Visas are a boon to investors looking for the fastest way to get US residency. The following are a few benefits EB-5 investors can avail of if they invest through the EB-5 Set-aside Visa category.
- EB-5 Priority Processing: Rural Projects also benefit from EB-5 Priority Processing, which means faster approval of their EB-5 Visa applications.
- Lower Investment: Generally, the EB-5 Visa investment is $1,050,000. However, if you have invested in Set-Aside Visa projects, then the investment amount is reduced to $800,000.
- Benefits to F1 and H1B Visa Holders: Concurrent filing allows people in the US on student or work visas to immediately apply for a change of status, thereby giving them the freedom to plan their studies and work opportunities accordingly.
How can you jump the queue and get into the US faster?
● Investors applying for EB-5 Visas after March 15, 2022, can benefit from the EB-5 Set Asides Visa.
● Investors from countries like China, India, and Vietnam are now investing in a project for an EB-5 Set Asides Visa and joining the new Fastrack queue.
● They will not be subject to retrogression and will get visas as soon as their EB-5 application is approved.
● However, the number of visas available each year under the EB-5 Set-Asides Visas category is limited and may soon get exhausted. Hence, please act fast if you want to benefit from the EB-5 Set-Aside Visa.
Future of Set-Aside Visas
Lately, we have seen a great demand for these set-aside visas among investors seeking quicker green cards, especially from countries like China and India. Based on the data available, it appears that the set-aside visas for high-unemployment areas have been exhausted for this year, resulting in retrogression. However, there are still set-aside visas available for rural projects with EB5 priority processing, and investors can take advantage by applying in this category, which will also be exhausted due to high demand and will also go under retrogression in the near future.
How can we help you get to the US faster?
As you can see, EB5 set aside visas are the quickest way to get permanent residency in the US.
We at Acquest Advisors specialize in the EB5 Visa program for Indians based in India and overseas. Our CEO, Paresh Karia, is a well-known media personality and thought leader in the areas of investment and immigration. His background as a chartered accountant and an ex-banker, along with his network of professionals, makes him adept at guiding sources of funds planning and documentation, project selection, and overseas funds remittance. We also assist investors in identifying rural EB5 projects, which qualify for EB5 priority processing, ensuring a faster route to securing a US Green Card. Schedule a call with him and take that first decisive step to secure your family’s future in the US.
What are the EB-5 Reserved Visa OR EB-5 SET ASIDES VISA categories
Under the new EB-5 act, 32% of the total EB-5 visa will be reserved/set aside for qualifying projects
HOW CAN YOU JUMP THE QUEUE AND GET INTO THE US FASTER
- Investors applying for EB-5 Visas after March 15, 2022, can benefit from the EB-5 Reserved Visa/EB-5 Set Asides Visa.
- Investors from countries like China, India, and Vietnam now invest in a project for a EB-5 Reserved Visa/EB-5 Set Asides Visa and join the new Fastrack queue.
- They will not be subject to any retrogression and will get visas as soon as their EB-5 application is approved.
- However, the number of visas available each year under the EB-5 Reserved Visas/EB-5 Set Asides Visas category is limited and may soon get exhausted. hence, please act fast if you want to benefit from the EB-5 Reserved Visa/EB-5 Set Asides Visa.