On July 16, 2024, USCIS issued new guidance for the EB-5 Regional Center Program, focusing on the consequences of noncompliance issues. This guidance interprets provisions of the EB-5 Reform and Integrity Act of 2022 (RIA) and explains sanctions for noncompliant regional centers, enterprises, job-creating entities, and investors. It details circumstances that may lead to adverse actions on EB-5 petitions, applications, and benefits.
It also provides special rules for good-faith pre-RIA investors to keep their eligibility if their associated regional center or project is terminated or debarred due to noncompliance.
In this article, we will highlight the updated policy and what it means for EB-5 investors.
Background and Purpose of the Updated Policy
Policy Highlights
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Background and Purpose of the Updated Policy
On March 15, 2022, the RIA became law, reforming the Regional Center Program, updating eligibility requirements, and adding integrity rules and protections for EB-5 investors. USCIS then released revised guidance for investor petitions to match the new law.
The new policy guidance issued on July 16 updates Part G, Investors, in Volume 6 of the Policy Manual to include these changes. It gives USCIS more authority to sanction noncompliant regional centers and protect good-faith investors.
The new guidance replaces any previous related guidance and is effective immediately.
Policy Highlights
The policy outlines how good-faith investors, including those who submitted their petitions before the RIA came into effect, can maintain their eligibility if USCIS decides to terminate or debar their regional center or EB-5 project. This provision provides EB-5 investors with a path to maintain their immigration benefits even if their chosen regional center faces sanctions, protecting them from being penalized for circumstances beyond their control.
While the updated policy makes it clear that USCIS will not sanction individuals or entities for actions taken before the RIA was enacted, it states that serious or repeated pre-RIA violations may be considered when assessing the seriousness of post-RIA violations.
The policy also details the process and criteria USCIS generally uses when deciding on sanctions such as terminations, debarments, and suspensions. USCIS adds a new Chapter 8, Sanctions and Discretionary Determinations, to the policy manual to define what typically constitutes threats to national interest, fraud, material misrepresentation, deceit, and criminal misuse.
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USCIS’s new policy update further highlights the importance the agency places on regional center compliance and program integrity. These changes mean regional centers will have to be more accountable through regular audits and transparent operations to avoid penalties.
For investors, the new guidelines offer more security, ensuring that their investments are protected from fraudulent practices and that they still have options if their regional center is found to be noncompliant.
However, investors should still perform due diligence and seek professional advice when selecting regional centers and projects for a smooth immigration process.
To learn more about USCIS’s EB-5 policies, details of program requirements, or anything else you need guidance on, book a free one-on-one call with our expert team today.
