Watch Webinar on 2022 EB-5 Program Reform and Integrity Act with Ron Klasko, Esq.
The EB-5 Reform and Integrity Act of 2022, which makes numerous welcome adjustments to EB-5 investment regulations, was included on the omnibus spending package signed into law by President Joe Biden on March 15. The EB-5 investment industry has been modified significantly, and many of the act’s changes promise to make the EB-5 process smoother and more efficient for investors while placing a greater emphasis on transparency and integrity.
The following are some of the key changes made by the EB-5 Reform and Integrity Act.
- Reauthorization of the regional center program: The EB-5 Regional Center Program has been reauthorized until 2027, thus ending the plight of thousands of regional center investors whose I-526 petitions were no longer eligible for processing. Starting in May 2022, regional centers will be able to resume operations, albeit under more stringent regulations. In another significant decision, the reform bill also grandfathers in all regional center investors who file their I-526 petitions on or before September 30, 2026.
- Priority processing for rural targeted employment areas (TEAs): United States Citizenship and Immigration Services (USCIS) will now grant some form of priority processing to investors in rural TEA projects. The criteria for designating rural TEAs remains the same, but high-unemployment TEAs will now be designated by USCIS.
- Concurrent Filing of Forms I-526 and I-485: Now, foreign nationals who make an EB-5 investment will be allowed to file the I-526 and I-485 petitions simultaneously. This is a substantial advantage for EB-5 investors who already reside in the United States under another visa; it allows them to adjust their status immediately and avoid the delays associated with consular processing.
- Job creation: There are now limits on the amount of indirect and induced positions that can be created by regional center projects. Indirect and induced positions can only make up 90% of the job creation, and up to 75% of the jobs can be construction positions lasting less than two years.
- Investment requirement: The new minimum investment threshold for projects in TEAs is $800,000. All other projects require an EB-5 investment of at least $1,050,000.
These changes promise to usher in an exciting new period in the EB5 investment industry. Foreign nationals interested in making an investment in compliance with these new regulations and business owners interested in sourcing EB-5 capital should feel free to contact EB5AN, one of the foremost consulting firms in the industry, for guidance.