Visa Lawyer Blog

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Welcome back to Visalawyerblog and a very happy Thursday to all our loyal readers. In this blog post, we bring you the latest information regarding the expiration of the EB-5 Regional Center program.

What is the EB-5 Regional Center Program?

To become eligible to receive a green card (permanent residence) under the EB-5 Immigrant Investor Program, a foreign national must make either (1) a direct investment in a new commercial enterprise or (2) an investment in a Regional Center project, resulting in the creation of at least 10 jobs, during the time that the investor is granted conditional permanent residence. These are considered the two different “types” of investments under the EB-program. The amount required to be invested depends on whether the investment is “direct” or made in a Regional Center project.

Several considerations need to be taken into account by the investor when deciding which type of investment is right for them (whether “direct” or in a Regional Center). Most often “direct” investment is the most suitable option where the foreign investor wishes to open and operate his own commercial enterprise in the United States and wants to have full control over his or her investment.

The “direct” EB-5 program has three basic requirements: (1) investment in a “new commercial enterprise” (2) of at least $1,000,000 (or $500,000 if the investment is being made in a Targeted Employment Area (TEA) that is underserved) (3) that results in the creation of at least 10 new full-time jobs. Investors are also required to take an active enough role in the business having at least a policy-making position.

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Federal District Judge Rules to Reinstate $500,000 Minimum Investment For the EB-5 Visa Program

In this blog post, we share with you a new landmark court decision affecting the EB-5 Immigrant Investor Visa Program, known as matter of Behring Regional Center LLC V. Chad Wolf et al.

In this case, decided on June 22, 2021, the U.S. District Court of the Northern District of California vacated the controversial 2019 ‘EB-5 Modernization Rule’ that sought to ‘modernize’ the EB-5 visa program, by increasing the minimum investment amount from $500,000 to $900,000.  In her ruling, Judge Corley concluded that the 2019 Modernization Rule should be vacated because the former acting DHS Security, Kevin McAleenan was not properly appointed in his position under the Federal Vacancies Reform Act when he implemented the Regulations.  Therefore, the officials had no legal authority to make and to announce the changes.

The judge’s new ruling means that the district court’s decision will restore the original rules for the EB-5 program, initially established by the Immigration Act of 1990 as a legal pathway to provide qualified foreign/immigrant investors the opportunity to obtain permanent residency in the U.S. (commonly known as the “green card”). The now-defunct EB-5 Modernization Regulations of 2019 had increased the minimum investment amount from $500,000 to $900,000, but with this new ruling the minimum investment amount has again reverted to $500,000.

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We kick off the start of a brand-new week with some important information for immigrant and nonimmigrant visa applicants residing in regions currently affected by the four geographic Presidential Proclamations still in place, for non-citizens in the Schengen countries, the United Kingdom, China, Iran, Brazil, South Africa, and India.

The Presidential Proclamations, collectively known as the COVID-19 Geographic Proclamations are as follows:

  • Presidential Proclamation 10143 (Schengen Area, United Kingdom, Ireland, Brazil and South Africa)
  • Presidential Proclamation 9984 (China)
  • Presidential Proclamation 9992 (Iran)
  • Presidential Proclamation 10199 (India)

*The Schengen countries include Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and Switzerland.

The COVID-19 Proclamations were issued early on during the pandemic to help contain the rapid spread of the Coronavirus in the United States, by limiting the entry to the United States, of non-citizen travelers who were physically present in any of the impacted regions during the 14-day period, prior to their planned entry or attempted entry to the United States.

To comply with these Proclamations, U.S. Embassies and Consulates worldwide have been unable to issue nonimmigrant and immigrant visas to those who have been physically present in any of the above mentioned 33 covered countries. But all of that has recently changed thanks to new National Interest Exception designations made by the Secretary of State for certain types of travelers.

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Welcome back to the Visalawyerblog! We have a very exciting announcement for you this afternoon. The International Entrepreneur Parole Program is back and in full force!

Today, May 10, 2021, USCIS announced that it will no longer pursue Trump era efforts to terminate the International Entrepreneur Parole Program and will instead remain committed to the continuance and implementation of the program to benefit immigrant entrepreneurs.

This decision is all part of the Biden administration’s efforts to restore faith in our legal immigration system, as outlined in Executive Order 14012, requiring DHS to identify and remove agency actions that fail to promote access to the legal immigration system.

What’s been happening with the International Entrepreneur Parole Program?

The International Entrepreneur Parole program was first established during the final days of the Obama administration with a planned implementation date of July 17, 2017. The program was designed to expand the admission of certain entrepreneurs into the United States by granting them temporary permission to enter the United States, (also known as “parole”) for a period of up to five years in order for the entrepreneur to begin a start-up business in the United States. Qualifying businesses include those with a high potential for growth and expansion.

The program did not establish a permanent immigration option, nor did it qualify an entrepreneur for permanent residence. Instead, the program was implemented as an option for eligible entrepreneurs wishing to remain in the United States on a temporary basis. One of the main advantages of the program was that entrepreneurs could take advantage of a much simpler immigration process known as requesting “parole” instead of having to apply for an investor visa at a U.S. Embassy or Consulate abroad.

Sadly, shortly after Donald Trump assumed the Presidency in early 2017, his administration quickly went to work to dismantle and undo the International Entrepreneur Rule before its planned implementation date.

The Trump administration set the stage for the undoing of the program by first issuing a rule in the federal register to delay the program’s implementation date to March 14, 2018, giving the agency more time to terminate the program.

On May 29, 2018, the administration formally moved to terminate the program by publishing a proposed rule to terminate the program altogether. Since then, the program has remained in a state of limbo, with the Trump era proposed rule still sitting idle in the Federal Register.

Today, the Biden administration made clear that the International Entrepreneur Parole Program is here to stay.

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For many small businesses struggling to survive in the wake of the COVID-19 pandemic, receiving a Paycheck Protection Program (PPP) loan was the only option to stay afloat.

Unfortunately, the $350 billion in aid set aside by the CARES Act has run out. While it is believed that Congress will approve a second round of appropriations to fund the Paycheck Protection Program throughout the pandemic, there is no guarantee that this will occur.

What will happen to those who applied for a loan but did not receive any funds before the money ran out?

Those who submitted a PPP application through their lenders still have a good chance of getting funded as financial institutions continue to process loan applications that were submitted. Many lenders have not gotten around to notifying borrowers that they have been approved and will be funded. Borrowers should contact their lenders to follow up with the process.

Furthermore, according to recent information provided to the American Immigration Lawyers Association (AILA) by SBA expert Chris Chan, small business owners should keep the following things in mind when considering their next steps:

  • Businesses that applied up until a few days ago still have a real shot at hearing good news from their banks. Those that have already been approved by their bank should all get money within the 10 days required by law.
  • If the loan has an SBA number attached to it, that means it made it through the initial phase of processing and will likely be part of the loan amount that’s been approved. It doesn’t mean the loan could not be denied for other reasons, but there is hope in this scenario.
  • Other loans submitted under PPP may be declined, which would free up cash under the $349 billion for other loans in the queue to be processed.
  • There is bipartisan support of adding an additional $250 to $300 billion to the program in CARES Act 2. Congress is hung up over other provisions and adaptations that they want in the program, but there was news coverage this weekend that indicated they are close to an agreement.

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In this post we would like to address some of our clients frequently asked questions regarding the Payment Protection Program, a loan forgiveness program created by the CARES Act (Coronavirus Aid, Relief, and Economic Security Act).

In response to the Coronavirus pandemic, the United States government recently passed a bill providing emergency financial relief to individuals, families, and small businesses. As you know, the majority of states nationwide have issued stay-at-home orders requiring the public to avoid all nonessential outings and stay at home as much as possible. Non-essential businesses have also been ordered to close their facilities to the public until further notice. Essential businesses have been allowed to continue to operate such as grocery stores, pharmacies, health care facilities, banking, law enforcement, and other emergency services.

One of the main provisions of the bill, known as the CARES Act (Coronavirus Aid, Relief, and Economic Security Act), allocates billions of dollars in loans to small businesses who are feeling the economic impact of the stay-at-home orders. The CARES Act specifically authorized the Small Business Administration (SBA) to create the Payment Protection Program for the purpose of providing financial assistance to small businesses nationwide that have been adversely impacted by the COVID-19 crisis. SBA lenders began accepting loan applications from small business owners on April 3, 2020. Applications will continue to be accepted until June 30, 2020. It is important for business owners to apply for these loans as soon as possible.

  1. What is the Payment Protection Program?

In a nutshell, the Payment Protection Program is a loan forgiveness program that allows small businesses (of 500 or fewer employees) to apply for loans of (1) $10 million or (2) 2.5x the average total monthly payments of the company’s payroll costs, whichever is less.

Loans under this Paycheck Protection Program (PPP) will be 100 percent guaranteed by SBA, and the full principal amount of the loans will qualify for loan forgiveness provided that:

(1) the business was in operation on February 15, 2020 and either had (a) employees for whom you paid salaries and payroll taxes or (b) paid independent contractors as reported on Form 1099;

(2) all employees are kept on the payroll for 8 weeks and;

(3) the money is used for payroll costs, rent, mortgage interest, or utilities (at least 75% of the forgiven amount must have been used for payroll).

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Are you a small business owner feeling the pinch of the Coronavirus (COVID-19) pandemic? Have no fear, the newly passed Coronavirus Aid, Relief, and Economic Security Act (CARES) provides emergency financial relief for small to mid-sized businesses in the United States, to help business owners keep employees on their payroll.

This federal relief package allocates nearly $350 billion in emergency aid for businesses through a small business loan program called the Paycheck Protection Program. This program is separate from existing federal loan programs, including existing Small Business Administration (SBA) disaster relief loans which you may also decide to pursue.

Paycheck Protection Program

What is it about? 

The Paycheck Protection Program is a loan forgiveness program (available through June 30, 2020) designed to provide a direct incentive for small businesses to keep workers on their payroll.

For small business owners who participate, loans obtained through this program will be fully forgiven if (1) all employees are kept on the payroll for 8 weeks and (2) the money is used for payroll costs, rent, mortgage interest, or utilities (at least 75% of the forgiven amount must have been used for payroll). As an additional incentive, loan payments will be deferred for six months. No collateral or personal guarantees are required to obtain a loan.

According to the SBA, loan forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness is reduced if full-time headcount declines, or if salaries and wages decrease.

Please note: PPP loans are not grants, instead they are loans—the majority of which can be forgiven if used for payroll costs as outlined above.

Who is Eligible?

Any small business with less than 500 employees (including sole proprietorships, independent contractors, self-employed persons, private non-profits, and 501(c)(19) veteran’s organizations) affected by the coronavirus pandemic can apply.

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In this blog post we highlight the best features of E-2 Treaty Investor Visa program, for individuals seeking to live and work in the United States for a temporary period of time.

First let’s discuss what the E-2 visa is. The E-2 visa is a non-immigrant visa type, which means that it is a temporary visa option for individuals who do not wish to immigrate to the United States, but rather are interested in remaining in the United States for a limited period of time.

Secondly, the E-2 visa is a treaty investor visa. This means that in order to qualify for this visa type you must be a national of a country with which the United States maintains a treaty of commerce and navigation. This visa type allows a national of a treaty country to apply for admission to the United States under the E-2 visa category for the purpose of investing a substantial amount of capital in a United States business.

Currently, 89 countries maintain a treaty of commerce and navigation with the United States. Israel and New Zealand are the most recent countries to enter into a treaty commerce and navigation with the United States, allowing nationals of these countries to participate in the E-2 visa program. For a complete list of the countries with which the U.S. maintains a treaty of commerce and navigation, please click here.

The most frequently asked question when it comes to the E-2 visa is, how much money must I invest in order to qualify for this visa type?

The amount of money that must be invested depends on the nature of the business’ operations. USCIS defines the amount of capital to be invested as “a substantial amount of capital” interpreted as:

  • Substantial in relationship to the total cost of either purchasing an established enterprise or establishing a new one
  • Sufficient to ensure the treaty investor’s financial commitment to the successful operation of the enterprise
  • Of a magnitude to support the likelihood that the treaty investor will successfully develop and direct the enterprise.  The lower the cost of the enterprise, the higher, proportionately, the investment must be to be considered substantial.

Thirdly, to qualify for the E-2 visa the investment must be in a bona fide business enterprise that is real, active, and operating and is producing either services or goods for profit. Passive investments are not allowed.

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Are you a small business owner?

What would you do if immigration agents came to your workplace?

You may have heard about the recent increase in immigration raids all over the United States. U.S. Immigration and Customs Enforcement (ICE) has been targeting undocumented immigrants not just at home but also at work. These raids have led to thousands of employees being arrested, some of them even deported.

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The Trump administration is bringing about more changes to the world of immigration, this time targeting the EB-5 Immigrant Investor Program.

USCIS has just announced that it is planning to revise regulations governing the EB-5 Immigrant Investor Program.

Tomorrow, the agency will be publishing a final rule in the federal register outlining these changes. The final rule becomes effective on November 21, 2019.

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