MUMBAI: The EB-5 regional centre programme for a US residency has lapsed as of midnight June 30. Adopting a different stand from earlier years when a gap in the programme had arisen, US Immigration and Citizenship Services (USCIS) has now stated that it will outright reject new applications under this route, received on or after July1.
It should be noted that the EB-5 programme continues for those making direct investments, setting up business operations and creating at least 10 jobs for Americans. However, nearly 90% of the EB-5 investments are made via regional centres, which pool investor funds and then sponsor business operations.
The EB-5 programme is commonly referred to as the ‘cash for green card’ programme, as it requires a substantial investment to be made. On the flip side, it assures a comparatively quicker route to permanent residency.
Currently, EB-5 regional centre stakeholders are engaged in advocacy to urge reauthorisation of this programme and presentation of a new legislative bill.
Commenting on the USCIS guidance note relating to the lapse of the regional centre programme, LCR Capital Partners chairman & founder Suresh Rajan said, “We found the tone was very positive. We also remain positive about a reform and reauthorisation of this programme. Our expectation is that it will be in place before the end of this fiscal (September 30).”
Mitch Wexler, partner at a global immigration law firm Fragomen, said, “It is interesting that the I-526 petition submissions are being treated differently as compared to the 2018 gap in the programme. Then, USCIS accepted these petitions, but held them in abeyance until the programme was reauthorised. This time they are rejecting such petitions outright as of July 1, until reauthorisation. This effectively ends the $500,000 fire drill as, if and when the regional centre programme is reauthorised, it will likely be at $900,000.”
A recent US district court order had resulted in investment norms being reversed to earlier limits. However, TOI had pointed out that this court victory would be shortlived owing to the sunset clause in the EB-5 regional centre programme.
