Startup Visa for Entrepreneurs

Obama’s New Immigration Proposal – Startup Visa for Entrepreneurs

Nearing the end of his presidency, President Obama and his administration has proposed a startup rule, now in a formal comment period within the Department of Homeland Security.  The new visa, quickly becoming known as the “Startup Visa”, would target immigrant business owners and give them a new option for staying in the country to grow their business.

If the visa proposal is approved, it would allow non-native business owners who found companies in the U.S. to stay in the country for an initial period of two years to build their startups. To qualify, entrepreneurs must have at least a 15% ownership stake in a startup where they have a central role in operations, and have raised either $345,000 from private investors, or $100,000 from government grants or other sources. The USCIS has quoted that “upwards to 2,100 entrepreneurs could be eligible to stay annually.”

It is important to note however that the above criteria only grants an applicant two years of stay. After the initial two year window, entrepreneurs can stay an additional three years if they meet a new set of criteria, including double-digit annual revenue growth, revenues of at least $500,000, and the creation of at least 10 full-time jobs. This is where the problem lies, as many qualified entrepreneurs may not meet these new demanding criteria. Numerous startups are able to grow without taking on additional investment money, and plenty are able to do quite well operating with just a handful of employees.

This visa is imperfect, as are all visa options within the United States.  However, as late as this visa option arrives at our doorstep, it is important to be grateful for the brand new opportunity it will grant to countless foreign entrepreneurs that have had their eyes set on moving to the United States to grow their business but were held back due to lacking visa options. Imperfections aside, this proposal will make it easier for non-native entrepreneurs to operate, which would benefit both the visa holder and the United States.

Buda Law Group urges parties who are considering this new entrepreneur visa to call us with any questions or concerns.

Thank You,

John B. Buda, Esq.

www.budalawgroup.net

office: 626-796-1422

john.buda@budalawgroup.net

1201 W. Huntington Dr. Suite 209

Arcadia, CA 91007

Surge in L-1A’s from China

The EB-5, a controversial federal immigration program that offers green cards to foreign investors had record demand in 2015. The EB-5 program offers green cards to aspiring immigrants who invest at least $500,000 into certain businesses that have been determined to create at least 10 jobs per investor. Typically each investor secures two to three visas, including family members. The EB-5 program received applications from 17,691 investors in 2015, up from 11,744 in 2014 and 6,554 in 2013, according to figures released by the U.S. Citizenship and Immigration Services.

In total, there were 21,988 investor applications pending at year-end, and given that the program allows just 10,000 visas a year, that means a massive backlog was created of at least five years for most investors. In addition, there was a drop-off in demand because of the slowing economy in China, which accounts for more than 80% of the reason that EB-5 visas were being issued. This huge backlog created a visible surge in another popular visa, the L-1 program.

The L-1 intra-company transferee visa is designed in order to allow a company doing business in a Country like China to open or acquire an American subsidiary location, and transfer vital employees to operate and manage the business in the United States.  The idea being that the employees can obtain L-1 visas if they qualify. An L-1a visa applicant must have worked at least one complete, continuous year during the previous three years for the foreign business that is transferring him/her to the U.S.

In the current stage of FY2016, the USCIS has received well over 120,000 L1 petitions. This number is almost double from FY2010. Of the 120,000 L1 petitions this year, over 40,000 are from China alone. This is a strong indicator of the effect that the EB5 backlog has had on the confidence of Chinese foreign investors and their faith in the strength of the EB-5 program. With approval rates around 75% and no visible backlog to date, the Chinese are scurrying to this attractive visa trend. However, with current numbers and their upward drift, this visa option is sure to be backlogged relatively soon as well, and new visa options will have to become considered.

The team at Buda Law Group can guide and represent employers in the preparation of individual and blanket L-1 petitions. Our attorneys can consult with companies considering or initiating the establishment of new offices in the United States with regard to L-1 related planning for staffing a new office. Finally, we are available to consult with both employers and employees to discuss their options and responsibilities within the L-1 category.

Thank You,

John B. Buda, Esq.

www.budalawgroup.net

office: 626-796-1422

john.buda@budalawgroup.net

1201 W. Huntington Dr. Suite 209

Arcadia, CA 91007

EB-1 Retrogression for Chinese Born Nationals

On July 11, 2016, the Department of State (DOS) issued a visa bulleting which threatens the status quo for Chinese born foreign nationals. The Visa bulleting was relating to the Employment-Based First Preference Category (EB-1) visa, retrogressing it for the first time in nearly a decade. The EB-1 category applies to individuals of extraordinary ability, outstanding professors or researchers, and multinational executives and managers. Retrogression means slowing down the “priority date” used by the DOS to determine when an immigrant visa will be made available to the alien. Prior to this Visa bulletin, the priority date for Chinese nationals under the EB-1 category was current since October, 2007.  What that means was that foreign nationals that were qualified under the visa were allowed to simultaneously and immediately apply for their visa and adjust their status. The visa bulletin has changed this date to January 01, 2010 for nationals of China (and India).  Unfortunately, what this announcement means for the thousands of EB-1 applicants is that if they did not submit their EB-1 immigration petitions before 2010, USCIS will not accept their adjustment of status applications under the backlog, or waiting list, is cleared.

The implications of these changes are that if an adjustment of status application is received by the USCIS before the end of July 2016, the application will be current and it will be accepted for processing.  However, this is one major positive takeaway from all of this: Applicants from China and India can look forward to October 1, 2016, when the new annually allotted green cards under the EB-1 category will be issued, which the August 2016 visa bulletin announced that the categories will once again become current.  In summary, EB-1 retrogression for Chinese foreign nationals may indicate a distressing trend: that the visa category which was once considered the fastest way to an employment based green card, may now be slowing down to match existing backlogs in other visa categories. For instance, the EB-2 visa category for China in the past few years has been heavily backlogged, so many applicants chose the EB-1 route for a quicker means towards lawful permanent residence.

The United States needs to understand that by enabling the most talented and gifted individuals in the world to come to and work in the United States, the positive impact on society, both economically and culturally, is immeasurably positive. Therefore, let’s stay optimistic that the announced October 2016 date will place EB-1 visas back onto current status, so that the world’s best can continue to apply and move their talents to the United States.

The team here at Buda Law Group knows that the retrogression changes announced to begin in August will majorly impact many families in the United States. We are ready to deal and adjust to any changes of this magnitude that come about, and feel that we are the best in the industry to achieve the best possible results. Please feel free to contact us if you have any questions or concerns regarding the announced EB-1 retrogression, or any immigration issue and they will be gladly answered.

Thank You,

John B. Buda, Esq.

www.budalawgroup.net

office: 626-796-1422

john.buda@budalawgroup.net

H-1B and L-1 Visa Reform Bill Introduced

The H-1B and L-1 Visa Reform Act of 2016 introduced by Democratic Congressman Bill Pascrell from New Jersey and Republican Dana Rohrabacher from California would prohibit companies from hiring H-1B employees if they employ more than 50 people and more than 50 per cent of their employees are H-1B and L-1 visa holders. In order for this bill to be signed into law, it needs to be passed by the Senate, which has not yet happened. Congressman Pascrell states, “America is producing many skilled, high-tech professionals with advanced degrees and no jobs. By in-sourcing and exploiting foreign workers, some businesses are abusing the visa programs and undercutting our workforce to reap the rewards”…”Without the critical reforms our bill proposes, American workers will continue to be unfairly displaced and visa workers will continue to be mistreated — both of which are unacceptable.”

Pascrell and Rohrabacher had introduced a similar version of this bill in 2010, which could not gain enough support in the Congress. The lawmakers said the H-1B and L-1 Visa Reform Act of 2016 would close loopholes in the H-1B and L-1 visa programs, reduce fraud and abuse, provide protections for American workers and visa holders, require more transparency in the recruitment of foreign workers, and increase penalties on those who violate the law.

Buda Law Group understands that the revenue model of the majority of big IT companies is heavily dependent on H-1B and L1 visas in the US. Thus, such a bill is likely to have a major impact on many businesses that employ using the H1B or L1 work visas. Buda Law Group urges parties who are considering H-1B and L1 visas to call us with any questions, especially if they are applying for companies that have a large number of employees.

Thank You,

John B. Buda, Esq.

www.budalawgroup.net

office: 626-796-1422

john.buda@budalawgroup.net

1201 W. Huntington Dr. Suite 209

Arcadia, CA 91007

EB1C (Multinational Executive or Manager)

The EB1C is an employment-based immigration petition designed specifically for multinational executives and managers, and must be sponsored by a U.S. employer. Why is this visa better than the other available options? The EB1C is an attractive option because there is currently no visa backlog for this category and priority dates are current. This means more immediate consideration and processing of the petition. Generally, an EB1C is a good option for overseas companies to implant one of their more knowledgeable employees at an affiliate or subsidiary office in the U.S. Moreover, with an EB1C petition, the petitioner may forego the labor shortage attestation process, which is usually required for lower-preference categories and can be a time-consuming process. This visa option is also particularly attractive to those that are already on an L1A visa, as the transfer between the L1A visa to EB1C visa is fluid due to their similar requirements.

In order to qualify for the EB1C, the foreigner must have been employed outside the United States in the 3 years preceding the petition, for at least 1 year by a firm or corporation, and must be seeking to enter into the U.S to continue service to that firm or organization’s affiliated U.S. entity.  Moreover, the alien’s employment must have been outside the United States in a managerial or executive capacity and with the same employer, an affiliate, or a subsidiary of the U.S. prospective employer.  The transferee’s managerial or executive duties must be at a high level that involves critical decision-making, supervising, and other job duties that are essential to the livelihood of the business. The petitioning employer must be a U.S. employer. This employer must have been doing business for at least 1 year, as an affiliate, a subsidiary, or as the same corporation or other legal entity that employed the foreigner when he or she was abroad.

Buda Law Group strives to handle its clients’ immigration matters with the utmost integrity, care, and professionalism. We also have stringent policies of promptness and diligence, which allow us to provide a personal, attentive, and strategized approach in our clients’ immigration matters. Please call us if you have any further questions regarding the EB1C visa or any other immigration questions.

Thank You,

John B. Buda, Esq.

www.budalawgroup.net

office: 626-796-1422

john.buda@budalawgroup.net

1201 W. Huntington Dr. Suite 209

Arcadia, CA 91007

Donald Trump and his Proposed Wall

Donald J. Trump’s vow to restore what he says is America’s lost luster comes with campaign promises that are equally grandiose. But Donald Trump, the nearly official Republican nominee, has provided limited details on how he might make good on his promises to build a “Great Wall” separating Mexico and the United States to clamp down on issues with illegal immigration.

Central to Mr. Trump’s campaign, is using a vast deportation “force” to relocate people to the other side of a wall, funded by Mexico, that would stretch nearly the length of the southern border. However, experts across many fields who have analyzed his plans so far warn that they would come at astronomical costs — whoever paid — and would in many ways defy the logic of science, engineering and law.

Donald Trump has a simple plan to reduce the population of 11 million immigrants living illegally in the United States, and it is to deport them. Trump says he would follow the example of the military-style roundups authorized by President Dwight D. Eisenhower in 1954.

Michael Chertoff, the secretary of homeland security under President George Bush states, “I can’t even begin to picture how we would deport 11 million people in a few years where we don’t have a police state, where the police can’t break down your door at will and take you away without a warrant.” Furthermore, about 15 thousand new ICE agents would need to be trained and hired, as well as hundreds of brand new judges for emergency hearings to help with the current immigration backlogs that exist in the United States’ legal system.

The next issue would be the feasibility of the wall itself. The most common benchmark used for assessing Mr. Trump’s wall is the fencing that already exists at the border. In 2006, the Bush administration signed the Secure Fence Act, and $2.4 billion was spent to construct 670 miles of fencing. Mr. Trump plans on building 1000 miles of concrete wall along the southern border between Mexico and the U.S.  A wall would be even more complicated, requiring redirection of water so that concrete could be mixed on location. Furthermore, setting aside the need for congressional approval and a likely fight with Mexico over financing, many who study borders doubt that a mass of concrete would accomplish its purpose.

To complete this analysis, we need to draw from the experiences and culture of our ancestors – from the ancient Great Wall of China to Israel’s modern security wall in Gaza, walls rarely prove totally impervious to people set on breaking their physical and symbolic barriers. Walls tend to be crude solutions to complex problems, so we as Americans need to come together to figure out more cost efficient and socially acceptable solutions.

The team here at Buda Law Group knows that many changes lie ahead for families in the United States with immigration issues. We are ready to deal and adjust to any political and legal changes that come about from this election. Please feel free to contact us if you have any questions or concerns regarding any immigration issue, and they will be gladly answered.

Thank You,

John B. Buda, Esq.

www.budalawgroup.net

office: 626-796-1422

john.buda@budalawgroup.net

Consequences of Raising EB-5 TEA Investment Amount

Now that the EB-5 program has been renewed in the United States, the issue appears to be what changes Congress intends to implement to the program. Today the EB-5 investment program has evolved into a full-fledged industry that revolves around the $500,000 figure, and yet still brings billions of dollars in foreign investment into the United States. Whether the TEA’s $500,000 minimum investment amount will be raised to the proposed $800,000 amount or eliminated entirely are concerns for all within this industry.

The TEA investment amount of $500,000 was set more than two decades ago. When adjusted based on the Consumer Price Index, 1990’s $500,000 has the purchasing power of only $275,235 in today’s dollars. In comparison to other immigrant investor programs, the United States’ EB-5 investment program requires the least amount of investor capital. The basic requirements of the EB-5 program – to create jobs and stimulate the economy — distinguish it from the other investment programs. In addition, while some argue that investing $500,000 in an entrepreneurial stand-alone project is unlikely to sustain a viable business creating 10 permanent jobs, the same amount pooled, either in a direct pooled or a regional center project certainly has proven success.

EB-5 attorneys, agents, brokers, and practitioners all agree that by raising the minimum investment amount, many investors are going to be priced out of the market, especially considering the “at risk” element of the EB-5 program, making the United States less attractive to potential investors. The $500,000 benchmark undoubtedly brings a higher volume of investors into the United States. The majority of investors infuse further bouts of fresh capital into the American economy by purchasing real estate, engaging professionals, paying taxes on their global income, paying for education, and making alternative investments into the stock market, as well as expanding their overseas businesses in the United States. In 2010, new immigrant business owners had a total net business income of $121.2 billion, which is 15 percent of all net business income in the country!

Furthermore, once the initial investment capital of $500,000 is returned, there is a far higher likelihood that this capital would be reinvested in the United States rather than being returned to the country of origin. Annually, the EB-5 Program accounts for less than 1% of the visas issued by the U.S. Thus, a reduction of the number of foreign investors in the EB-5 category is not in America’s best interest. Before the minimum amount is drastically increased, Congress must ensure that the overall domino effect on economic growth is assessed.

In conclusion, if Congress decides to either raise the minimum investment figure to acclimate with the Consumer Price Index or remove the TEA designation entirely, thereby raising the EB-5 investment capital amount to $800,000 or more, the change would make the EB-5 program unattractive in comparison to its international competitors, who may just prefer to spend a higher amount that is guaranteed as opposed to being at risk. The United States should not limit the number of potential investors it can attract to the EB-5 program. With over $20 billion at stake and thousands of jobs being created every year, the EB-5 program will continue to thrive as long as Congress does not stifle its growth.

Buda Law Group urges parties who are considering EB-5 visas to call us with any questions.

Thank You,

John B. Buda, Esq.

www.budalawgroup.net

office: 626-796-1422

john.buda@budalawgroup.net

1201 W. Huntington Dr. Suite 209

Arcadia, CA 91007

USCIS Completes the H-1B Cap for FY 2017!

On April 12, 2016, the U.S. Citizenship and Immigration Services (USCIS) announced completion of the H-1B cap lottery selection process. Receipt of more than 236,000 H1B petitions was reported, compared to fewer than 233,000 cap-subject petitions filed last year. The USCIS has not provided a breakdown of how many of these petitions were eligible for the advanced-degree exemptions (or, “master’s cap”), and it is not expected to do so.

Lottery selection for the master’s cap was conducted first, and cases filed in that category that were not selected were included in the regular cap lottery selection. Cases that were not selected in the regular cap lottery will be returned with filing fees. The USCIS will begin to adjudicate cases filed for premium processing no later than May 16, 2016.

On April 9, the USCIS used a computer-generated random selection process, or lottery, to select enough petitions to meet the 65,000 general-category cap and the 20,000 cap under the advanced degree exemption. The USCIS will reject and return all unselected petitions with their filing fees.

The team here at Buda Law Group knows that it is going to be a very long wait for many H1B Applicants who filed a petition for the FY2017 quota. With our experience, we suggest that you remain calm and continue to focus on whatever you are currently engaged in. Do not let the news from other H1B lottery petitioners discourage you, as varying processing times exist for every type of H1B applicant, and results are not simultaneously released throughout the United States. The USCIS is currently rushing to process the 236,000 petitions, so stay patient. You will get through!

If you have any questions about the H1B Process, or any other Immigration issue, they will gladly be answered by the team here at Buda Law Group.

Thank You,

John B. Buda, Esq.

www.budalawgroup.net

office: 626-796-1422

john.buda@budalawgroup.net

1201 W. Huntington Dr. Suite 209

Arcadia, CA 91007

H1B Lottery Season 2017 Has Begun!

If you were one of the unlucky ones not picked in whopping 233,000 H1B 2016 Lottery Applications, you might be already wondering when the next H1B season was going to start. The 2017 season for the H1B Lottery has been underway since April 1, 2016.  Every year, there is a congressional mandated maximum number of petitions that the USCIS can accept.  The below are the released H1B cap numbers for fiscal year 2017:

–       Regular H1B Quota: 65,000

–       H1B Master’s Degree Quota (only US Master Degrees): 20,000

–       Out of the above, a total of 6,800 is usually set aside for Singapore and Chile citizens as part of the free trade agreement between them.

There have been many discussions from the Obama administration regarding changing the H1B cap. The planned proposal was to increase the regular quota cap to 110,000 and Masters quota to 25,000.  Unfortunately these changes have not been implemented by congress. Thus, there are no changes for FY 2017, with the above numbers of 65,000 and 20,000 having been confirmed by the USCIS in their press release.

Once again for FY 2016, there were 233,000 applications filed, with 172,500 for FY 2015, and 124,000 for FY 2014.  Using simple math, the total amount of applicants that were not picked in the lottery were about 274,500 individuals.  This means that even if half of those individuals chose not to apply this year, the quota would still be met and more.

Based on Buda Law Group’s analysis, we believe that there will be significant demand for H1B filings this year due to the fundamental growth of international students in the U.S. and demand for highly skilled labor in America with a small national unemployment percentage of 4.9%. In terms of numbers, we anticipate that there could be anywhere from 230,000 to 250,000 H1B petitions filed for FY 2017 that could be part of the lottery. Keep in mind that if the pattern of the last three years continues, the number may actually grow to be closer to 300,000 H1B petitions.

If you have questions about the H1B Lottery or any other Immigration issue, they will gladly be answered by the team here at Buda Law Group.

Thank You,

John B. Buda, Esq.

www.budalawgroup.net

office: 626-796-1422

john.buda@budalawgroup.net

1201 W. Huntington Dr. Suite 209

Arcadia, CA 91007

Significant Rise in Chinese Immigration to the USA

In a surprising study recently released by the Census Bureau, China has sent more immigrants to the United States than Mexico. China was the country of origin for 147,000 recent U.S. immigrants, while Mexico sent just 125,000.  For the study, presented last week at the Population Association of America conference in San Diego, researchers analyzed annual immigration data for 2000 to 2013 from the American Community Survey.

The mandatory annual survey conducted by the Census Bureau asked where respondents lived the year before.  This study included undocumented illegal immigrants as the questions did not ask about legal status.  Therefore, while the data does certainly include undocumented immigrants, it is likely that this number is significantly undercounted.  In 2012, Mexico and China had been basically tied for top-sending country—with Mexico at 125,000 and China at 124,000.  But Chinese immigration has now passed that from Mexico.

China and India hold the world’s largest collective populations, and their immigrants are increasingly moving to the United States in order to study, work, and unite with families in the country.  Meanwhile, immigration from Mexico has been declining due to improvements in the Mexican economy and lower Mexican birthrates. More recently, the U.S. recession also reduced illegal immigration from Mexico.  In 2012, five times as many immigrants in the U.S. were from Mexico than China, however the changing nature of the immigrant flows seen in the Census study provide a glimpse of what is likely to happen to the overall racial and ethnic makeup of the U.S. population.

According to Census projections, by 2044 the entire U.S. population will have no racial majority, and, instead, a melting pot of minorities will shape American society and politics. Hispanics are still the U.S.’s largest racial or ethnic minority group, but about two-thirds of them are now native-born, not recent immigrants. More interestingly, will the Chinese soon replace Hispanics for that ethnic minority title in the United States?

Buda Law Group is happy to represent both the Chinese and Hispanic communities and has been successfully serving their immigration needs for years.  The team at Buda Law Group is fluent in both languages and would be happy to assist you with any immigration questions you may have.

Thank You,

John B. Buda, Esq.

www.budalawgroup.net

office: 626-796-1422

john.buda@budalawgroup.net

1201 W. Huntington Dr. Suite 209

Arcadia, CA 91007