Since the implementation of the EB-5 Reform and Integrity Act of 2022 (RIA), the I-526 and I-526E filing processes have changed significantly. However, one of the biggest challenges remains accessing reliable, real-time data from USCIS.
To bridge this gap, Invest in the USA (IIUSA), in collaboration with 11 regional centers and through the Freedom of Information Act (FOIA), collected and analyzed actual I-526E and I-956F processing times. The findings of their analysis were recently published in a comprehensive report.
In conjunction with the release of the report, IIUSA hosted a webinar (link to second part of webinar) with industry experts, including CanAm’s Chief Operating Officer, Christine Chen, to discuss the latest trends in case filings, adjudications, and processing times in the EB-5 program. As the EB-5 market evolves under the Reform and Integrity Act (RIA), it’s crucial to analyze how these changes are impacting the industry, especially for investors and project developers.
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Key Findings from the Data Collection
The initial data set, which included over 1,200 I-526E cases, provided a valuable starting point for understanding processing trends. Among these, approximately 350 cases had already been approved, allowing IIUSA to draw some conclusions about average processing times based on project type. For instance, rural projects had an average processing time of 10 months, while urban projects in high-unemployment areas took an average of 14 months.
The data also revealed that processing times for rural projects, which benefit from priority adjudication under the RIA, were faster than those for urban projects. This difference is essential for both investors and legal advisors, as it highlights the potential time-saving advantage of investing in rural projects.
While this data is valuable, more analysis is necessary. The current findings represent a snapshot based on the cases approved thus far, but the real value will emerge as more cases are adjudicated and additional data becomes available.
Next Steps in Data Collection and Analysis
IIUSA’s data collection initiative is not a one-time effort but an ongoing process. There is an urgent need for continued participation from regional centers to keep the data current and relevant. By reaching out to regional centers regularly and updating the dataset, IIUSA aims to provide the EB-5 industry with up-to-date information that reflects real-time trends in processing times.
One of the primary goals moving forward is to analyze the correlation between I-956F approvals and I-526E processing times. The I-956F must be approved before any associated I-526E petitions can be adjudicated. Early findings suggest that petitions filed after the I-956F approval tend to be processed faster. However, due to the limited data on this subset of cases, IIUSA needs to collect more information before making definitive conclusions.
To facilitate further data collection, IIUSA has put measures in place to protect the privacy and confidentiality of the information shared by regional centers. Each center is provided with a private Google spreadsheet, accessible only to them and IIUSA. Additionally, no personal information about individual investors is collected. This ensures that regional centers feel secure sharing their data while also contributing to the overall transparency of the EB-5 program.
The Role of Real-Time Data in Managing Investor Expectations
One of the key takeaways from the webinar was the importance of managing investor expectations in light of evolving data. Investors often hear conflicting information from various sources, including anecdotal reports of fast approvals or delays. The IIUSA data, while not perfect, provides a more realistic picture of what investors can expect regarding processing times.
Having real data allows advisors to offer a more informed estimate, even if it means explaining that some investors might experience longer wait times than others. By continuing to collect and analyze this data, IIUSA can offer investors and their advisors a clearer understanding of what lies ahead.
Future Projections and Ongoing Challenges
Looking ahead, one of the most pressing challenges is the growing backlog of pending I-526E petitions. As of the latest data, a significant percentage of rural cases have been pending for more than 10 months, and many high-unemployment urban cases have been pending for over 14 months. As these backlogs are addressed, the average processing times are expected to increase, making it even more critical for investors and regional centers to stay informed about processing trends.
The webinar also touched on the potential for litigation if delays continue to mount. The RIA includes specific guidelines on processing times, and if USCIS fails to meet these targets, investors may turn to legal action to compel the agency to adjudicate their petitions. By continuing to collect and analyze data, IIUSA can provide critical evidence to support investors in these cases, ensuring that the program remains transparent and accountable.
Conclusion: Building a Sustainable Future for EB-5
As IIUSA continues its data collection efforts, the EB-5 industry is positioned to benefit from unprecedented levels of transparency. With more data, investors, regional centers, and legal advisors can make more informed decisions about project investments and timelines. The next steps involve expanding the dataset, analyzing the relationship between I-956F and I-526E approvals, and using this information to manage expectations and hold USCIS accountable for meeting processing targets. In this evolving landscape, data-driven insights will play an essential role in shaping the future of the EB-5 program.
