EB-5 Regional Center Reauthorization
On March 15, 2022 President Biden signed a law that included the reauthorization of the EB-5 Immigrant Investor Regional Center Program. On August 24, 2022, the USCIS and various regional centers reached a settlement to the litigation challenging the interpretation of the bill. This conclusion provided clarity to the law and made the EB5 regional center program open to new investment!
Key Revisions to the EB-5 Program
EB5 Regional Center Reauthorization
The EB-5 Regional Center Program is reauthorized until 2027. All previous EB5 immigrant investors who made investments and filed their I-526 prior to the program lapsing are grandfathered in to the new program.
Minimum Investment Amount
Minimum EB5 investment amount has increased to $800,000 in a Targeted Employment Area (TEA), and $1,050,000 outside of a TEA.
Reserved EB-5 Visas
20% of the annual eb-5 visa allocation will be set aside for projects and business ventures in rural areas. 10% for high-unemployment areas. 2% for public infrastructure projects.
Adjustment of Status
EB5 investors already in the U.S. on a non-immigrant visa (E-2, F-1, H-1B, L-1) may concurrently submit their Adjustment of Status petition (Form I-485). This allows investors to file their I-526 and I-485 at the same time.
Indirect Job Creation
Indirect jobs cannot exceed 90% of total job calculations, and indirect jobs from construction projects lasting less than two years cannot exceed 75%. This change will likely reduce the calculation for number of jobs created by construction projects and increase the number of EB5 projects with construction timelines greater than two years.
Accounting and Reporting
Regional centers must obtain audited financial statements from the NCE or use a third-party fund administrator. This change will provide more clarity into the finances for the EB5 investors and will help to prevent fraud.
Innocent Investor Protection
EB5 investors will not lose their priority dates or child protection status if the RC, NCE, or JCE is terminated. This is another addition that will reduce immigration risk for investors.
Source of Funds
Funds used to pay administrative costs and fees must be sourced in addition to the investment amount. Also, an increase to seven years of investor tax returns must be provided. This change is likely to increase immigration attorney fees and time associated with filing an I-526.
I-829
Filing of Form I-829 may be delayed by up to one year if the project has experienced a delay with job creation. Another great investor protection addition that benefits everyone and reduces immigration risk for EB5 investors.
Updated Visa Bulletin for October 2022 and Retrogression:
Chinese and Indian investors who filed I-526 petitions are currently facing visa retrogression (Final Action Dates: March 22, 2015 for China and November 8, 2019 for India). However, investors from all countries, including China and India, who file their I-526 petitions today can select projects located in rural areas to avoid having to wait for the EB-5 visa category to become current.
