the EB-5 visa will become meaningless to these investors.
Many investors are concerned that their money would have
to remain at-risk much longer with the increasing visa wait
time, and that they may be forced to redeploy their money into
higher risk projects.
These are some of the reasons for an increased number of
investors who have withdrawn or are considering withdrawing
their I-526 petitions. Investors should understand that until new
EB-5 legislation or regulations are passed, no one knows if the
waiting period will actually grow to 10 or 15 years. Moreover,
if more and more investors withdraw, the visa backlog will
decrease. Thus, those who continue to wait will likely be
rewarded with a shorter wait time than expected.
Despite the current projected backlog, new investors are still
investing today. While the number of interested mainland
China-born investors has noticeably decreased, investors
who apply today are those who plan ahead and are not
discouraged by the current projected backlog. Most of these
investors have children who are under six years old, are sure
11
EB5 INVESTORS M AGAZINE
about their immigration goals, and are willing to wait.
If the visa allocation system is changed to one visa per
investor family, as many believe is the original intent of the
law, then the backlog issue will be fixed and the EB-5 program
will blossom again and be the vehicle to bring many more
investors and capital into the country, as the United States is
still a top choice for Chinese investors.
LEGISLATION UNCERTAINTY
Changes to the current EB-5 law will have tremendous impact on
the state of the China market. The many short-term extensions
have prepared the China market for the potential increased
minimum investment amount to about $1 million and potential
changes in TEA.
Other changes, such as the potential need of redeployment
to maintain the at-risk investment requirement, have also
been increasingly accepted by Chinese investors. Changes to
increase the integrity of the program have always been