Los Angeles, CA, March 11, 2022

EB-5 Reauthorization; After months of debate and uncertainty, the U.S. Congress has passed the “EB-5 Reform and Integrity Act of 2022” as part of the overall U.S. Omnibus Spending Bill. The EB-5 Reauthorization extends the EB-5 Regional Center program through September 30, 2027, with significant changes that will impact existing and future investors. Most notably, the minimum EB-5 investment amount would increase to $800,000 from the current $500,000 for Targeted Employment Areas and Rural Areas and $1.05M from the current $1M for Non-Targeted Employment Areas for both regional center and direct EB-5 investments.

Some major provisions that will affect existing investors include: 

  • The new restrictions and greater investment amounts will not apply to pending I-526 petitions.
  • After the bill is signed into law, I-526 petitions, adjustment of status applications, and consular procedures will resume.
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For future investors, a few important points:

  • With I-526 petitions, concurrent adjustment of status filings of I-485 fillings are allowed which means applicants currently in the US on F-1 student visa, OPT, H-1B work visa, L-1A managerial visa and other non-immigrant visas can apply for and get Employment Authorization Document (EAD) and Travel Document (TD) in 90-120 days of applying for EB 5 and become free to work anywhere without employer sponsorship.
  • For targeted employment areas (TEAs) or “infrastructure projects,” the needed investment amount will increase to $800,000. The investment amount will be $1,050,000 if this is not the case.
  • If the EB-5 program lapses in the future, grandfathering laws require USCIS to continue processing EB-5 petitions as long as they are filed by September 30, 2026.
  • The bill allocates 20% of total EB 5 visa numbers to investments in rural areas, 10% to investments in high-unemployment areas, and 2% to infrastructure projects.
  • In some instances, protection for dependent children who have reached the age of majority.
  • Gifts are still allowed, and they aren’t restricted to family members.
  • Capital investments, administrative fees, and any fees “connected” with the investment are also subject to source of funds restrictions.
  • If a regional center or new commercial enterprise (NCE) closes, there is a process in place to switch projects.

Regional Centers can expect the following:

  • Caps on indirect and construction jobs have been imposed.
  • Individual I-526 applications must be presented after an I-924 application has been filed.
  • The validity of TEA letters is two years.
  • USCIS must audit RCs at least once every five years.
  • Outside of the RC geography, (maybe) redeployment is allowed (subject to regulations).
  • Persons who have committed certain crimes or who have been subject to orders or sanctions from certain state or federal enforcement bodies are prohibited from participating in RCs.
  • Third-party agent fees and involvement in a project must be disclosed.
  • The USCIS requires direct and third-party promoters to register.
  • New RC/NCE “funds administration” guidelines.

In addition to these, the 40 page bill includes other points that may prove interesting, such as an EB-5 Integrity Fund, which mandates USCIS to investigate “program related events and promotional activities” outside the US, among other things. Read more about the EB-5 Integrity Fund. 

The new EB-5 program is certain to provide a long-term boost to the EB-5 regional center program. EB5 BRICS will continue to assess how this critical legislation, as well as the regulations and recommendations that will follow it, will affect EB-5 investors, regional centers, project developers, and EB-5 Visa Statistics.

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