On May 4, 2016, U.S. Citizenship and Immigration Services (USCIS) proposed filing fee increases and the addition of a new fee to the EB-5 Program. The government agency, which is part of the Department of Homeland Security, has invited the public to comment on its new fee schedule through July 5, 2016. The last time fees were increased was on November 23, 2010.
In its “Proposed Rule,” USCIS explains that current fee levels are insufficient to recover its full cost of activities. The agency is primarily funded by fees charged to petitioners and applicants seeking immigration and naturalization benefits. Every two years, USCIS conducts a comprehensive fee review to ensure that the fees do indeed cover the costs necessary to meet national security, customer service, and adjudicative processing goals.
USCIS’ 2016/2017 comprehensive fee review determined “that current fees do not recover the full costs of the services it provides. Adjustment to the fee schedule is necessary to fully recover costs for USCIS services and to maintain adequate service.” USCIS anticipates that if it continues to operate at current fee levels, it will experience an average annual shortfall of $560 million.[1]
If implemented, the proposed changes will increase USCIS fees by a weighted average of 21%. Additionally, USCIS has proposed a new fee for the EB-5 Program. The new fee of $3,035 will be required to file Form I-924A. Regional Centers use this form to demonstrate continued eligibility for Regional Center designation on an annual basis. Currently, there is no filing fee for this form.
The list of proposed fee increases for the EB-5 program are as follows:
- Form I-924 application for Regional Center designation or amendment: increase from $6,230 to $17,795; +186% change.
- Form I-924A for Regional Center Annual Certification: increase from $0 to $3,035.
- Form I-526 immigrant petition: increase from $1,500 to $3,675; +145% change.
- Form I-829 petition to remove conditions: no change (still $3,750).
So what do these changes mean for you?
Good news for all EB-5 applicants: reduced processing backlogs, greater transparency, and “near-real-time” updates
Let’s start with the good news. As stated in the Proposed Rule, USCIS pledges to use its increased revenue to hire the personnel needed to reduce backlogs and processing times. In addition, USCIS hopes to make current published processing time information more transparent and easier for customers to interpret. To that end, the agency is exploring new technologies to help it publish processing times sooner and to show different processing times for each office and form type. USCIS is also considering publishing processing times using a range rather than using one number or date. This approach would show that, for example, half of cases are decided in between X and Y number of months.
Furthermore, USCIS will seek to provide near-real-time processing updates to the customer that will him to identify the case status and time period lapsed between actions for each individual case. This will allow greater transparency to the public on how long it will take to process each case as it moves from stage to stage (e.g., from biometrics collection, to interview, to decision, etc.).[2]
Mixed news for Regional Centers:
If and when these changes are implemented, it will be more expensive to start, maintain, and file Regional Center projects. However, there is still time to take action to help minimize the brunt of the fee increases. Specifically, if you are looking to start a Regional Center, filing Form I-924 (for Regional Center Designation) as soon as possible will result in a significant savings. If you submit the application before changes take effect, you will pay a fee of $6,230 instead of $17,795, a savings of $11,565.
Mixed news for foreign investors:
While there will be a $2,175 increase for filing an I-526 petition, the fee for filing an I-829 petition to remove conditions will remain the same. Thus, foreign investors looking to apply for an EB-5 visa should act quickly before any potential fee increases take effect.
Foreign investors who have already identified a project should compile and submit their documentation immediately. Foreign investors who have not yet identified a feasible EB-5 project should watch e-Council’s entertaining and informative EB-5 explainer video to learn more about how the EB-5 process works. They should also speak to a licensed broker-dealer to identify an appropriate and viable EB-5 project as soon as possible. (Investors can read our helpful article on how to vet an EB-5 broker-dealer here.)
Both Regional Centers and investors seeking EB-5 funding should enlist a team of skilled EB-5 professionals, such as the e-Council Inc.com team, to produce compliant EB-5 documentation for USCIS approval. e-Council Inc. is an experienced, full-service company with a long track record of successfully guiding its clients through the complex EB-5 process. Our team includes attorneys, researchers, and other professionals who specialize in providing due diligence services that will equip investors, Regional Centers, and business owners with the information needed to assess a project’s viability and likelihood of passing USCIS scrutiny.
If the project proves feasible, e-Council Inc. can create a Matter of Ho-compliant business plan and other documents designed to support the EB-5 application in a relatively short span of time. Once all the necessary materials and information have been provided, our team can produce a Matter of Ho-compliant business plan in four to six weeks.
In sum, whether you are an investor, business owner, or developer, the e-Council Inc. team can help you file your application before any potential fee increases take effect…but only if you act quickly.
To inquire regarding our turnkey customized EB-5 services, including our best-in-class Matter of Ho-compliant business plans, due diligence project assessments and a wide range of ancillary services, please contact us at info@ecouncilinc.com.
e-Council Inc.’s website, newsletter and other forms of communication contain general information about legal matters. The information is not legal advice and should not be treated as such. You must not rely on the information on this website as an alternative to legal advice from an attorney or other professional legal services provider. For specific questions about any legal matter please consult with an attorney or other professional services provider.
[1] https://www.federalregister.gov/articles/2016/05/04/2016-10297/us-citizenship-and-immigration-services-fee-schedule
[2] Ibid.