Immigration has always been a major topic in U.S. elections, influencing policies and voter sentiments alike. With the uncertainty surrounding the 2024 election, it is crucial for EB-5 investors to understand the potential impacts on immigration and their investment pathways.
In case you missed it: 3 key events of the 2024 Election so far
June 27: CNN Presidential Debate
One of the arguments on the immigration issue was the border crisis. Trump claimed that the border was safe under his administration. While Biden noted that there is no evidence to support these claims, and that he tried to get a bipartisan agreement passed in Congress to give the President new powers to address an influx of migrants. Biden met with criticisms and concerns from the Democratic part due to his poor performance in the debate.
July 15-18: Republican National Convention - Trump named Republican presidential nominee
The Republican part officially named Trump as the Republican presidential candidate. Trump also announced the Ohio Senator J.D. Vance as his running mate for Vice President. Vance's take on the immigration issue is similar to Trump and aligns closely with the Republican party.
July 21: Biden withdrawn, endorses Kamala Harris as Democratic presidential nominee
Biden announced this past Sunday that he will end his presidential re-election campaign, concluding his half-century long career in politics. He also effectively endorses his Vice President Kamala Harris to replace him as the Democratic presidential nominee.
A look back at each administration's immigration policies
Trump Administration
Trump Administration's immigration policies collectively aimed to tighten immigration controls and reduce both legal and illegal immigration.
Public Charge Rule: Made it more difficult for immigrants who use public benefits to obtain Green Cards.
Increase immigration enforcement: Expanded ICE operations and increased deportations.
H1B visa changes: Introduced changes to the H1B visa program to prioritized higher wages and skills.
Changes to the EB-5 program: Issued in 2019 raising the minimum investment amount from $500,000 to $900,000 for TEA qualified projects and $1,000,000 to $1,800,000 for non-TEA qualified projects.
Biden-Harris Administration
The Biden-Harris Administration's immigration policies focus on reversing restrictive measures, increasing protections, and promoting pathways to citizenships.
Ending Public Charge Rule: Reversed the rule that made it harder for immigrants using public benefits to obtain Green Cards.
H1B visa changes: Reversed Trump-era changes to the H1B visa program and focused on protecting American workers.
Changes to the EB-5 program: Signed the EB-5 Reform & Integrity Act of 2022 bill (EB-5 RIA 2022) into law, which requires more rigorous management for regional centers, improve efficiency and processing time, increase protection for investors, a brand new reform to EB-5 visa categories which offer no backlog (as of August 2024 visa bulletin) to investors from countries that face heavy backlog under the old law like China and India, and many more.
If Trump wins a second term, what's the effect on immigration policies?
During his first term, Trump implemented a series of strict immigration policies. And considering the Republican's political views on immigration issue, it makes sense to predict that the immigration for the next four years will continue to be tightened and restricted.
Country restriction: After Trump takes office, he may impose more restrictions on immigrations from specific countries, especially those that are considered a threat to national security.
H1B visa reform: During his first term, Trump tried to reform the H1B visa program. If re-elected, he may continue to promote this reform, including raising salary requirements and strengthening audits to ensure that more workers, who can create high value for the U.S., are retained.
Visa restrictions: The number of visas for certain categories may be limited, especially for employment-based categories.
More stringent EB-5 review process: Under the Trump administration, the EB-5 review process became more stringent, leading to higher compliance costs and increased application difficulty.
What can you do now?
You should evaluate your options and consult a professional to carefully plan your journey to obtaining a Green Card. The EB-5 program, which grants Green Cards to individuals who make a qualifying investment in an EB-5 project, is a viable pathway for many. If you are currently in the U.S. on another visa, such as H1B or F-1, the EB-5 program allows for concurrent filing, saving time and providing a combo card that lets you work and travel freely while your petition is processed by USCIS.
Combo card is generally processed and issued within 2-6 months of filing concurrently. Most ARCFE investors obtain their combo cards within 3 months, with the fastest case within only 57 days.
While obtaining a Green Card through the EB-5 investment is a relatively fast and efficient route compare to other immigration pathways, the supporting documents submitted with your petitions is equally crucial. For EB-5 investors, the Source of Funds (SOF) and Path of Funds (POF) are critical factors during the initial stage of their EB-5 journey that determine whether the I-526E petition can be approved by USCIS. Investors should consult with their immigration attorney, thoroughly evaluate their circumstances, and provide sufficient documentation to ensure a high success rate. While an investor can have multiple sources for their investment capital, all sources must be legal and must be proven as such to USCIS.
Preparing the EB-5 petition package can take 1-4 months, depending on each investor's circumstances. Although the SOF plan may appear straightforward initially, USCIS's thorough review often necessitates extensive supporting documentation and detailed explanations, which can be time-consuming. Investors should begin the process now to take advantage of the current administration's policies and proactively work towards achieving their American Dream.
Besides preparing for the SOF, it is also crucial for investors to conduct due diligence and select a project with the highest potential for success in securing a Green Card and ensuring the repayment of their investment once eligible. Choosing the right project can significantly impact both immigration outcomes and financial returns. A successful project is not only one that completes construction but also one that quickly attracts renters or buyers post-construction to efficiently repay investors and create sufficient jobs to meet USCIS requirements.
To accurately evaluate a project's potential, investors should consider several key points:
Location - Projects in rural areas may face more challenges thriving post-completion compared to those in urban areas, where demand is generally higher.
Market - Understanding the current market demand, supply, and growth potential is crucial; for instance, a condo or apartment building in Long Island City (NYC) could be highly successful due to strong residential demand and a growing demographic of young professionals who work or study in Manhattan, where rent is most likely out of their budget.
Capital Structure - Since USCIS requires that EB-5 investments be at-risk, it is essential to ensure that the project provides the highest safety net for your investment. Inquire whether the EB-5 capital is structured as equity or a loan, the type of loan, any collateral involved, and how your funds will be used in the project; for instance, a senior loan would be secured with mortgage, typically has first lien on the land and building, and has first priority in repayment (last to come in to the project, but first be repaid) - this type of loan offers the highest safety net for investors.
Award-winning EB-5 Regional Center with 100% Project Approval Rate
ARCFE is an award-winning Regional Center first designated by the United States Citizenship and Immigration Services on March 5th, 2013 (Pre-EB-5 RIA 2022) and was redesignated under the EB-5 RIA 2022 bill on December 15th, 2022. We have assisted over 1500 clients through 15+ real estate development projects, with a 100% project approval rate up to date. ARCFE has successfully raised and managed EB-5 funds and has returned EB-5 funds to all of our eligible investors. We have successfully repaid 100% EB-5 funds to all eligible investors.
U.S. immigration policies are continually evolving with the political climate, and currently, the policies are favorable for immigration. Individuals should take advantage of this opportunity and act now to pursue their Green Card and achieve their American Dream. Our team consists of professionals in the finance, real estate and immigration industries, including team members who are CPA and CFA. Speak to a professional today to determine your eligibility for a Green Card through the EB-5 program.
