Six Potential Major Impacts of Proposed New EB-5 Investor Visa Law

Table of Contents:

  1. Pooled Directs are dead

  2. Concurrent filing for Adjustments brings EB5 to USA

  3. Restrictive TEAs remove half the urban RCs

  4. Far East Agents are subject to US jurisdiction

  5. A changed EB5 landscape: 5 Year extension is historic, All projects need 10% direct jobs, $800k means a different kind of investor 

  6. Other EB5 issues: Grandfathering, Age-outs, Source of funds tweaks, Ban on foreign ownership


1) Pooled Directs are Dead: 

Congress wants everyone except individuals doing a single solo Direct EB5 just for their own business, to go through a RC. Even 2 friends both of whom manage a business will need to go through a RC. Even a solo investor relying on indirect jobs would need to go through a RC. Given that solo EB5s are less than 1% of the EB5 market, this effectively converts the EB5 program into a RC program. The golden era of pooled directs is over, and the era of pooled directs is also over.

2) Concurrent filing for Adjustments brings EB5 to USA: 

Concurrent filing of adjustment of status along with a I-526 will have a significant impact on the EB5 market. Adjustment of status will be available ONLY for those already in the US and for all countries whose EB5 numbers are current (i.e. all countries EXCEPT China and Vietnam). This has three consequences:

  • There will be a move towards adjustment of status as opposed to consular processing–making the EB5 market more USA-centric.

  • By providing EADs and advance parole–the lion’s share of benefits of having a Green Card-without a long wait to have I-526 processed– expands the countries whose nationals in the US will be using EB5 to secure green cards.

  • Market of Indians on H1B in the USA will expand to become nearly one third of the total EB5 global market, in other words the single largest source of EB5 investors in the world will be right here in good ‘ole USA.

3) Restrictive TEAs remove half the urban RCs 

With strict TEA definitions identical to the November 2019 regulation–but now built into the statute itself, more than 50% of urban RC projects will no longer qualify for TEA–and will be