EB-5 Retrogression Update
On April 13, 2015, at the Invest In the USA (IIUSA) Conference in Washington D.C., Chief of the Visa Control and Reporting Division of the U.S. Department of State Charles Oppenheim reported that the EB-5 China immigrant visa category will retrogress beginning May 2015. Oppenheim has indicated since October 2014 that this day would come. This was further confirmed upon the release of the May 2015 visa bulletin. Accordingly, this means that retrogression of the EB-5 China immigrant visa category will retrogress two years and have a cut-off date of May 1, 2013. The cut-off date has the effect of establishing a systematic line for the issuance of EB-5 immigrant visas. The cut-off date is determined based on the date an I-526 Petition was filed and is the date included on each I-526 Petition approval notice in the Priority Date box. Therefore, with the cut-off date set at May 1, 2013, based on the May 2015 visa bulletin, it means that during the month of May 2015, only those EB-5 investors (and their derivative beneficiaries) with a Priority Date of May 1, 2013, or earlier may apply for an EB-5 immigrant visa.
It is important to note that retrogression of visa numbers is based on country of “chargeability” (or country of birth) rather than country of citizenship. Therefore, those individuals who were born in mainland China are the only individuals impacted by this news. Individuals born in Hong Kong, Taiwan, or Macau are not affected. Further, if the EB-5 investor’s spouse was born in a country other than mainland China, the investor and their family may be “cross-chargeable” to the spouse’s country of birth, thereby escaping the Chinese quota retrogression. With these important news, attention needs to be brought to President Obama’s November 2014 outline of proposed changes that could potentially and positively impact the EB-5 program that would take place without regulatory change, with regulatory change, and his Presidential Memorandum on Visa Modernization.
With respect to the announced regulatory changes through the Administration Procedure Act, there are two key points that could provide a benefit to the EB-5 investor. First, is to enable entrepreneurs to be paroled into the United States and work if they are researchers, inventors, or founders of businesses. Second, is “early adjustment” that would enable individuals who are eligible to apply for adjustment of status, but for a non-current priority date, to file for adjustment and receive work authorization and travel permission. With respect to the Presidential Memorandum on Visa Modernization there are two additional points that could positively impact EB-5 investors. First, a possibility of recapturing permanent resident visa numbers based on visa numbers allocated by Congress but left unused, meaning, additional visas would be carried over to the next year’s available visa numbers. This would have a large impact on EB-5 especially if the President allowed the State Department to go back five years or more and recapture the thousands of unused immigrant visas in the EB-5 classification during those years. Second, is the possibility of not counting derivative spouses and children toward the EB-5 visa quota. Currently, when an EB-5 investor files for and has an approved I-526 petition, their family members count against the 10,000 EB-5 immigrant visa cap. Therefore, this potential outcome would greatly improve the approval rate for Chinese applicants as the quota cap for investors becomes significantly higher/more relaxed.
Buda Law Group has had years of successful experience serving families interested in the EB-5 Investor Visa Program and always had successful results. The EB-5 Retrogression issue is complicated, and you need experts on your side to figure it out. We would be happy to answer any and all questions related to this complex yet exciting visa, so please contact us and get a free consultation regarding any of your immigration needs.
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
Read MoreIncreasing Rejection Rates For L1A Visas
The L-1A intra-company transferee classification applies to qualified executives and managers within multinational companies. These individuals can be transferred from their foreign employer to work for up to seven years in the United States for an appropriately affiliated U.S. company. Unfortunately, L1A visa petitions have been experiencing an increasingly alarming rejection rate, directly affecting the ability of employers to increase jobs, innovation, and production inside of the United States.
In FY 2012 and 2013, U.S. Citizenship and Immigration Services (USCIS) increased its already historically high rate of denials for L-1 petitions. The Request for Evidence rate for L-1A petitions increased from 4 percent in FY 2004, to 24 percent in FY 2007, up to 51 percent in FY 2011. Denial rates for L-1A petitions increased from 8 percent in FY 2007 to 14 percent in FY 2011. There seems to be no indication of these rejection rates dropping any time soon, and no simple solution exists.
The wait for green cards (permanent residence) can span years or even decades, which means obtaining temporary status is essential for international students, skilled foreign nationals abroad, and others seeking to work legally in the United States. The primary temporary categories for skilled individuals to work in America are H-1B, which are for foreign nationals with the equivalent of a bachelor’s degree or higher working in a specialty occupation, and L-1, which allows an employer to transfer an employee into the United States who has worked at least one year abroad for the employer. The continuing high rate of denials and Requests for Evidence for L-1 petitions has a negative impact on the ability of companies to make products and services in the United States and compete globally.
The ultimate question that remains is if USCIS adjudicators or their supervisors have been attempting to prevent the movement of people in the global economy? If this is the case, it is certainly not their role and the consequences for increasing jobs, investment and innovation on U.S. soil have been suffering because of it.
Even in this difficult time for the L1 Visa Category, Buda Law Group has enjoyed an outstanding approval rate with its L1 applicants. During these pressing times for immigrants trying to move to the United States, the need for attorneys that specialize in L1 Visas is growing, but the supply is greatly limited. Let the team here at Buda Law Group help you with any of your visa needs.
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
Read MoreChinese Investments in American Real Estate
Why are the Chinese buying up so much American Real Estate estate? The answer comes down to money. Without question, the Chinese are the largest and wealthiest players in the U.S. housing market. In fact, Chinese purchases of U.S. residential properties will reach over $32 billion in April of 2015. Chinese investors have been riding the U.S. commercial real estate (CRE) wave, perhaps motivated by the gradual shift in the Chinese government’s policy to promote outbound investments and their preference for investing in real estate that provides comparatively modest and stable returns. The slowing of the Chinese economy and government restrictions on second and third homes are pushing these buyers into the hands of U.S. sellers of both commercial and residential properties. As a result, U.S. luxury real estate has become a safe haven for Chinese investors, and China has now emerged as the second-largest foreign investor, after Canada, with an 8 percent share of the total cross-border investments in U.S. CRE.
The location of the properties being purchases primarily by Chinese investors vary, but according to the National Association of Realtors, the top states for residential Chinese buyers are California, Washington State, New York, Pennsylvania, Texas, and Florida. Interestingly, Chinese investors are most attracted to the combination of warm climate and low cost of housing. The particular type of residential property that is most popular amongst Chinese buyers are detached single-family homes that they can use for about 6 months of the year. The NY Times recently ran an article forecasting that 47% of all second-home sales in 2015 would be from international buyers. The Chinese are the most powerful international group — a group so large that it can immediately impact an entire market.
If you are interested in learning more, please consult with a member of the team at Buda Law Group and they will be more than happy to answer all of your questions. Buda Law Group is a principal owner/operator of Golden Bridge Realty which specializes in Southern California Residential and Commercial Real Estate.
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
Read MoreL-1 VISAS: A GENERAL OVERVIEW
L-1 visas for intracompany transferees are popular options for some foreign nationals who would like to work for a US affiliate of the foreign company temporarily. This blog provides a general overview of the L-1 visa and its eligibility requirements.
To be eligible for admission into the United States as an intracompany transferee, the petitioning employer first must establish that the foreign national beneficiary worked for a company outside of the United States continuously for one year. This year of employment abroad must occur within the three years preceding the beneficiary’s application for admission into the United States. For example, if a beneficiary submits his application for admission on January 15, 2015, his continuous year of employment abroad must have occurred between January 15, 2012 and January 15, 2015.
Moreover, the year of employment abroad must be in a capacity that is “managerial, executive, or involves specialized knowledge.” Practically speaking, managers and executives often have similar roles within in a business, and the particular job title may not hold significance. However, these job titles and, more importantly, job descriptions are terms of art in immigration law, and therefore the words “managerial,” “executive,” and “specialized knowledge” have very particular meanings that must be understood when applying for an L-1 visa.
Second, the petitioner must prove that the beneficiary’s foreign employer and proposed U.S. employer are “qualifying organizations” A foreign employer and a U.S. employer are qualifying organizations if they are a parent, branch, affiliate, or subsidiary of each other. Additionally, the U.S. employer must be “doing business” in the United States and in at least one other country directly or through a parent, branch, affiliate, or subsidiary for the duration of the beneficiary’s stay in the United States.
The third requirement is that the beneficiary’s proposed employment in the U.S. must also be in a capacity that is “managerial, executive, or involves specialized knowledge.” A future blog post will discuss the definitions of these terms of art.
When the beneficiary is coming to the United States as a manager or executive to open or to be employed in a new office, the petitioner must provide evidence that it satisfies three additional requirements. First, the petitioner must establish that it has secured sufficient physical premises to house the new office. Second, the petitioner must demonstrate that the beneficiary’s employment abroad was in an executive or managerial capacity. Third, the petitioner must prove that within one year of the approval of the petition, the new U.S. operation will support an executive or managerial position. A new office is one that has been doing business for less than one year in the United States.
This blog is a general overview of L-1 visas and it is not meant to replace the advice of an attorney. If you are interested in learning more, please consult with a member of the team at Buda Law Group and they will be more than happy to answer all of your 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
Read MoreH1B Annual Visa Quota Beginning April 1st
The USCIS has announced that new H1B visa applications will begin to be accepted on April 1st, 2015. With an annual quota of 85,000, employers wishing to bring in graduate level overseas nationals into the country are being urged to start preparations now to be ready to submit an H1B visa application at the beginning of April 2015. Even if the H1B visa petition is submitted at the beginning of April it is likely that there will be a lottery for the available visas and many applications submitted will not be considered for further processing. If the visa is approved the earliest an employee will be able to start work on an H1B visa is 1 October 2015.
H1B visas are meant to employ graduate level employees to work as IT Consultants, engineers, financial analysts, scientists, software developers and other skilled professions. The annual 85,000 quota consists of 65,000 set aside for those with at least a bachelors degree or equivalent, with a further 20,000 reserved for people with advanced degrees from US educational institutions. Of the 65,000, 6,800 visas are set aside for citizens of Chile and Singapore as per the terms of the U.S.-Chile and U.S.-Singapore Free Trade Agreements.
USCIS anticipates that the number of applications submitted will be double the quota; because Congress has not raised the quota level, many applications will not be accepted for further processing. Some have forecast that the number of applications will be three times the quota or more. In 2014, over 172,000 H1B visa applications were lodged, with just 65,000 available. As the previous years have suggested, the USCIS expects the quota to be used up very quickly. If the number of applications submitted during the first five business days of April exceeds the annual quota, USCIS will initiate a lottery system.
Because of the quota there is a good chance that an H1B visa application will not even be considered. If the application is made more than a few days into April the limit may be reached prior to an application being made. H1B visas are valid for a period of three years with an option to extend for a further three years. They can also be extended beyond the six year period, provided a company has sponsored a candidate’s application for permanent residency. There are situations in which it is likely for an individual to not be approved via the H1B petition and/or lottery. Therefore, it is important to understand when this visa route is the most appropriate and what type of situations will likely result in denial.
With application numbers rising every year, it is highly encouraged that those interested in the H1B Visa petition contact the team at Buda Law Group for a free consultation to become fully educated on this and all other immigration needs.
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
Read MoreForeign Students Help US Economy
The Institute of International Education has just confirmed a record number of foregin students studying in American Universities. The total number of U.S. student visa holders for the year 2013-2014 was 886,052. The record numbers of foreign students studying in the US have contributed $26.8 billion to the US economy, and have created or supported 340,000 jobs, according to data from the National Association of International Educators (NAFSA). The primary expenditures that totaled in the billions contributed to the US economy were mainly on accommodation, student fees and living expenses.
The $26.8 billion spent by foreign student visa holders in the U.S. represents over a 12 percent increase on last year. The data also shows an 8.5% increase in job support and creation. This means that for every seven international students enrolled in U.S. universities, there are three U.S. jobs created. The jobs created are in higher education, and also in the accommodation, retail, transport, dining and telecommunications sectors. Several key figures in international education, like the CEO of NAFSA, Marlene Johnson has been quoted with stating “foreign students studying in the US contribute far more than just money.” She said “We cannot underestimate their immeasurable academic and cultural contributions to America’s colleges, universities and local communities.” She added that international students also “bring global perspectives into U.S. classrooms and research labs, and support U.S. innovation through science and engineering coursework.”
The above figures clearly show that the U.S. still has the highest percentage share of foreign students. This is despite the U.S. seeing a decrease in its share from 28% of international students in 2001 to about 19% in 2011. Internationally there has been significant growth in students studying abroad even with a smaller percentage share of the market the U.S. has still seen growth in student numbers. Marlene Johnson continued to state the consequences of inaction in Congress for immigration reform: She said “If Congress doesn’t take action and pass commonsense, comprehensive immigration reform, we will lose talented international students. The billions of dollars they contribute to this nation, along with the invaluable academic and cultural contributions they bring, will be at risk.”
Fortunately, Obama’s immigration reforms via executive action may help the situation. With expansion of the optional practical training scheme for overseas graduates in the U.S., many more students will be able to stay in the U.S. to pursue their education.
Buda Law Group has successfully helped hundreds of international students with their F-1 Student Visa needs. If you have any questions, please contact the team here at Buda Law Group and get a free consultation regarding any of your immigration needs.
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
Read MoreEB-5 Investor Program Processing Times Update for 2015
On January 12, 2015, the USCIS updated processing time information for the EB-5 Immigrant Investor Program Office (IPO). Average I-526 processing times took a modest but long awaited and welcome dip, while average I-829 and I-924 processing times continued to climb.
As seen in the chart above, I-526 Investor Visa processing times have dropped to levels from over 6 months ago. It is expected to continue to drop down to record low level processing times. These are very encouraging news for prospective investors interested in the EB-5 program.
USCIS has still not restored the EB-5 Regional Center program information page to its website, but it has added a new page titled Terminated Regional Centers. The page emphasizes the power of the USCIS to revoke Regional Center designation and gives a walk of shame for Regional Centers that have lost designation, for reasons that may range from missing paperwork to misconduct. Blameless EB-5 Regional Centers simply choosing to disband should seek to do so in a way that avoids being publicly listed together with the few Regional Centers terminated for a particular cause.
Buda Law Group is in a direct network with several EB-5 Regional Centers that have NOT been included in the Terminated Regional Centers page by the USCIS. This speaks to the integrity and good business practice that both Buda Law Group and its respective Regional Center partners choose to stand by. The EB-5 program is a great opportunity for investors and the United States alike, and these extensions definitely allow for many prospects to occur with those that are interested in pursuing a visa through this unique program. Please contact the team here at Buda Law Group and get a free consultation regarding any of your immigration needs.
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 91007Read More
Steep Rise in Russian EB-5 applications for 2014
The EB-5 Investment Program was created by the US federal government in 1990. With this program, foreign nationals have an opportunity to obtain U.S. green card eligibility by investing $1 million (or $500,000 if the EB-5 investment is made in the project located in a Targeted Employment Area) in the USA project or company that allows either to maintain or to create at least 10 full-time jobs.
The following is a statistics chart regarding EB-5 filings for fiscal year 2014 from the U.S. Department of the Visa Office.
Please note that in 2013 Buda Law Group posted a blog similar to this titled, “EB5 and Russia”, where Russia’s EB-5 prospects were discussed. The number of applications in 2011 from that report was listed at 30. In just three years, as can be seen in the chart above, Russia has increased its EB-5 applications for direct and regional target investments by more than three times, at a staggering 100 applications for the 2014 year.
This rising trend for Russian EB-5 applications can certainly be attributed to Russia’s intense attempts to become a more modern, open economy that more actively participates in the global economy. Recently Russia has hit a bit of a Public Relations fallback with its “aggressive” behavior with the Ukraine, causing a very large consensus of worry and apprehension amongst its millionaire elites. Currently, Russia is well on its way to exceeding 1,000 millionaire households and will certainly accomplish this before 2020. Therefore it comes as no surprise that EB-5 application and investment numbers have tripled in the recent 2014 year.
With all of this being said, the United States and Russia have come far in the last 20 years, so it is quite refreshing to see these strides in immigration with countries that used to be at each other’s throats. Unfortunately, there still exist many myths and misinterpretations surrounding the EB-5 program in Russia. This is why it is vital that individuals interested in making an EB-5 investment in order to attain a U.S. visa be properly educated to understand the EB-5 program and its requirements, benefits, and risks.
Buda Law Group has had years of successful experience serving families interested in the EB-5 Investor Visa Program and always had successful results. We would be happy to answer any and all questions related to this complex yet exciting visa, so please contact us and get a free consultation regarding any of your immigration needs.
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 Read MoreWhat to Expect from the President’s Executive Order on Immigration
Contrary to popular belief, the President’s executive order on immigration that President Obama announced Thursday also targets a very large pocket of immigrants that fall outside of the 4 million unauthorized individuals. In fact, the new changes should make life much easier for skilled workers and foreign graduates of American universities all across the United States.
One significant change would allow people who are currently on temporary work visas to change jobs and accept promotions while they wait for their green cards, without losing their place in line. This is truly significant because of the baffling backlog of green card applicants, some of whom have been waiting for permanent residence for years, who are stuck in their unfavorable careers. Another measure would allow a larger number of foreign students and graduates from American universities to work legally in the United States for up to 29 months, up from 12 months, in the areas of their training. Last but not least, a change that is most welcomed by the technology sector will make it far easier for foreign “inventors, researchers, and founders of start-up enterprises” to stay in the country and obtain green cards.
Although the president’s executive order will undoubtedly have an impact on immigration in the United States, it will also most certainly impact how Congress operates in the future. The reactions of President Obama’s opponents will have significant repercussions on the nation’s immigration policies. However, if cooler heads prevail amongst Republican leaders, the president’s opposition may be able to move forward to lead the next Congress into a productive session. We may even be witnesses to Congress “passing a bill”, as the President mockingly suggested in his speech last week. Unfortunately, the more likely reality will be a reaction focused on shutting down the government and challenging the president’s executive authority, doing nothing to change a governmental legislative process that has been the victim of much animosity in the past decade or so. A breath of fresh air exists in the form of those that, although in dispute with the President, would like to move on and restore order on Capitol Hill. How successful they are will be indicative of what to expect from Congress and President Obama within the next couple of years.
How far reaching are these changes, and how many immigrants and their families actually stand to benefit from them? Only time will tell, weighing on the shoulders of federal agencies like the USCIS and their willingness to comply and implement the regulations set forth by the President.
If you have any questions, please contact the team here at Buda Law Group and get a free consultation regarding any of your immigration needs.
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 Read MoreFederal Immigration Policy Overhaul Threatens Green Card Lottery Program
In 2014 more than 11 million people applied f or the annual U.S. Visa lottery. This is an increase of 11 percent from the previous year. Unfortunately for those that don’t win the lottery this time around, the entire program may be on the verge of ending. Less than half of 1 percent of applicants will receive the opportunity to become permanent residents through the popular Green Card Lottery program, which has provided green cards to lottery winners since 1990.
Regardless of these trivial numbers, this lottery still accounts for roughly 5 percent of all legal immigration in the United States. However, the Senate may be trying to pass an overhaul on immigration policy, arguing that the immigration lottery can be a security risk providing legal permanent residency to low-skilled uneducated immigrants, making it totally unfair to foreigners that have family and professional connections in the United States. The supporters of this reform claim that the current system is significantly beneficial for communities that have little to no connections to the United States. This sounds more like preferential and systematic racism than a security risk, yet the Senate is still making progress on this radical reform.
The professional and political opinion of everyone here at Buda Law Group is that the United States must continue its tradition of welcoming people from around the world to live and work in the United States. Instead of governmental overhauls on federal immigration policies we need to work to expand the existing lottery program, which has been critical for countless immigrants that would not otherwise have the opportunity to live in the United States.
If you have any questions, please contact the team here at Buda Law Group and get a free consultation regarding any of your immigration needs.
Thank You,
John B. Buda, Esq. www.budalawgroup.net office: 310-452-1872 john.buda@budalawgroup.net 3301 Ocean Park Blvd. Suite 205 Santa Monica, CA 90405 Read More