The Great American Dream is turning into a nightmare as the layoff season continues unabated in the US tech sector. The job cuts, combined with the challenging intricacies of the H1B visa programme, are compelling scores of ambitious Indians to look at EB-5 or the immigration-by-investment visa.
Google, Microsoft, Meta, and Amazon are some of the big tech firms that have sharply slashed jobs in recent months, in an industry which has globally shed over 285,000 workers since last year, according to Layoffs.
A bulk of the tech players slashing their workforce are headquartered in the US, and Indian nationals are said to be the worst affected. Industry insiders believe around 30-40 per cent of those laid off are Indian techies, a PTI report said in January.
Most of the Indians who get laid off are in the US on an H1B visa. This leaves them scrambling for a new employer, who should be willing to sponsor their H1B programme, within a period of 60 days. A failure to do so would force them to leave the country and head back to India -- which appears to be a more likely scenario in an environment where the entire sector is shedding jobs.
EB-5, which comes at a heavy cost of capital, may end up providing practical solutions to Indians, both in the US and in their home country, to fuel their immigration goals and find pathways for permanent residency, experts say.
How does the EB-5 visa work?
Immigrants, along with their spouses and unmarried children aged below 21, are eligible for an EB-5 visa if they invest a particular amount in a business based in the US, that will generate jobs for at least 10 qualified American workers, as per the US Immigration Act, 1990.
Under the prevalent rules, the minimum investment amount is $1,050,000 (Rs 8.6 crore) but can be reduced to $800,000 (Rs 6.4 crore) if it is being pumped into a "targeted employment area (TEA)", which is usually a rural area where the unemployment rate is high.
The EB-5 visa holders become eligible for a conditional green card, which is usually issued in 2-3 years, say immigration experts. An application can be filed after two more years to convert the conditional green card into a permanent green card, which will eventually pave the way for permanent residency and citizenship.
Unlike the H1B programme, EB-5 visa holders are not subjected to restrictions in terms of the area where they can study or work. They are also eligible to start up their businesses in any part of the country.