EB-5 Visa Availability Update—Good News All Around

Source: www.iiusa.org

The latest visa availability update has thrown up some very interesting data points likely to bring cheer to reserved as well as unreserved category EB-5 investors.

Record EB-5 Allocation for FY 2024.

The US will allocate 160,000 visas for all Employment-Based Immigrant Visa categories in FY 2024.

Around 7.1% or 11,360 EB-5 visas will be available in FY 2024. Out of these, around 7,720 EB-5 visas will be available for the unreserved category. As per the EB-5 Reform and Integrity Act’s carry-over provisions, the entire unused quota of reserved visas for FY 2022—6,936 visas—will be carried over to the unreserved category in FY 2024.?

So, a record number of around 14,100 EB-5 visas may be available for unreserved category investors in FY 2024.

Highest Consular Processing in Five Years

As of August 2023, more than 8,350 EB-5 visas have been issued through consular processing, which is the highest since FY 2018. This indicates improved visa processing capacity in US Consular Offices in countries like China, India, and Vietnam.

This is significant because a majority of EB-5 investors from China have applied from outside the US.

Unlike US-based investors who can live in the US until final adjudication on their Adjustment of Status petition, those living abroad need to wait for the end of consular processing and issue of the EB-5 visa to enter the country.

Record availability of visas combined with faster processing means FY 2024 may see a significant reduction in the backlog of Chinese and Indian investors who applied prior to the Reform and Integrity Act.

First Reserved Visa Issue Likely in FY 2024

No reserved visas were used in FY 2022 and this trend is likely to continue in FY 2023 too. However, I-526E petitions are now being approved, which means FY 2024 may see reserved category EB-5 visas being issued. Based on current processing trends, it’s unlikely that the entire quota of reserved visas will be utilized in FY 2024.

Utilization of Carry-Over Reserved Visas

The quota of carry-over visas will be utilized first followed by the quota for the fiscal year. So, FY 2024 will have around 8,113 reserved visas—4,478 visas carried over from FY 2023 and 3,635 visas from the FY 2024 quota.?

If 4,478 reserved visas are issued in FY 2024, then the entire quota for FY 2024 will remain unutilized and will be carried over to FY 2025.

Had this been the other way around, then more and more unused reserved category visas would have carried over to the unreserved category. This decision clearly shows that emphasis remains on maximizing the availability of EB-5 visas to reserved-category investors.

Guidance on Selecting Set-Aside Category

The RIA reserves EB-5 visas for rural projects, high-unemployment projects, and infrastructure projects. An applicant investing in an infrastructure project in a rural area that has high unemployment can qualify under all three categories.?

Currently, the investor is allowed to specify multiple categories in the I-526E petition. The USCIS is expected to issue guidance specifying when the applicant will be required to select a single set-aside category.

This will become a significant decision because choosing the right category may help the investor avoid backlogs, quickly qualify for conditional permanent residence, minimize investment risk, and improve the chances of recovery of the investment.