How EB-5 Set-Aside Rural Categories Speed Up Green Card Applications

For decades, the EB-5 Immigrant Investor Program has been a reliable pathway to U.S. lawful permanent residence for foreign nationals.

The program uses foreign investment capital to stimulate economic growth and job creation for American workers. In return, the foreign investor and their eligible family members can get Green Cards. Permanent residents of the United States gain access to valuable new personal and professional opportunities.

If you’ve been thinking about participating in the EB-5 program, you’re probably aware of visa backlogs and processing delays. Some investors—particularly those from India and China—have faced lengthy wait times.

So how can an EB-5 investor avoid delays?

Pursuing an EB-5 rural set-aside visa is an excellent way to skip the backlogs, speed up the processing of your application, and qualify for a reduced minimum investment amount.

In this article, we’ll explain what foreign nationals need to know about getting a Green Card promptly with EB-5 rural set-aside visas.

When Were Set-Aside Visas Introduced?

Thanks to the EB-5 Reform and Integrity Act of 2022 (RIA) the investment process is now faster, easier, and safer than ever for each EB-5 applicant.

The two traditional EB-5 investment options are still available: invest directly or via the regional center program into a new commercial enterprise (NCE).

The regional center investment option remains the best choice for the vast majority of EB-5 applicants. This is due in part to its additional safety features and easier job creation requirements relative to the direct investment model.

In 2023, about 96% of all EB-5 visas went to those who invested through regional centers.

New Set-Aside Visa Categories

A notable change under the RIA was the introduction of three new set-aside visa categories for the EB-5 program: rural targeted employment area (TEA) projects, high-unemployment TEA projects, and public infrastructure projects. If the EB-5 project you invest in qualifies for one of these categories, then you can apply for a set-aside visa.

Here’s an overview of what qualifies for each set-aside category.

Rural TEA Characteristics

A rural TEA is an area that:

• Has a population that does not exceed 20,000, as of the most recent decennial census.
• Is located outside a metropolitan statistical area (MSA), as defined by the U.S. Office of Management and Budget.
• Is not located by the outer boundary of a city or town with a population equal to or greater than 20,000.

High-Unemployment TEA Characteristics

A high-unemployment TEA is an area that:

• Is generally located in populous, urban areas.
• Has an unemployment rate that is at least 150% of the national average unemployment rate, based on the labor force employment measure for the census tract.

Public Infrastructure Project Characteristics

• Must be a specific government-approved infrastructure project.

By investing in one of these categories, investors can receive various benefits that reduce the risk and time required to be approved under the EB-5 program.

What Are the Advantages of Rural Set-Aside Visas?

For some investors, the best of these categories is a rural EB-5 investment. This is a qualifying capital investment in a project located in a rural TEA, which meets all of the criteria described above.

Because rural projects are in settings that have less economic activity and an especially great need for job creation, the incentives for foreign investors are considerable.

Here are some of the benefits of applying for a rural set-aside visa.

Reduced Investment Amount

The typical EB-5 minimum investment amount is $1,050,000. However, by choosing an EB-5 project located in a TEA, an investor qualifies for a lower investment amount of $800,000.

Avoid Visa Backlogs

Many EB-5 applicants from China and India who apply for unreserved visas will experience significant delays because of application backlogs before they and their families can emigrate.

However, there is currently no visa backlog for any applicants under the rural set-aside EB-5 visa category.

Faster Petition Processing

EB-5 applicants from high-demand countries must often wait for several years before the United States Citizenship and Immigration Services (USCIS) approves their I-526E petitions.

However, rural TEA investors receive the exclusive benefit of priority processing of Form I-526E.

This means you may receive your temporary rural EB5 Green Card in only a few months, even if you are from a high-demand country.

In addition, you can receive work and travel authorization in a matter of days.

What Percentage of Set-Aside Visas Are Rural?

Thanks to the RIA, 32% of the annual EB-5 visa pool has been set aside for EB-5 applicants who invest in favored projects.

The RIA reallocated EB-5 visas among project categories as follows:

• Rural TEA projects: 20%
• High-unemployment TEA projects: 10%
• Public infrastructure projects: 2%

Most of the EB-5 visa backlog applies to applicants from high-demand countries pursuing unreserved non-TEA projects. As previously mentioned, if you’re from a high-demand country, you can avoid that backlog by investing in one of the TEA or infrastructure projects.

The greatest supply of set-aside visas has gone to rural TEA projects; twice as many visas have been assigned to rural TEA projects as those in high-unemployment TEAs.

How EB-5 Applicants Should Approach Investing

Every EB-5 investor should be familiar with the Department of State’s Monthly Bulletin, which is also called the Visa Bulletin. The Visa Bulletin shows which immigrant investors are eligible to apply for and receive visas.

By reading this bulletin, immigrant investors can track their applications and see when they can apply for adjustment of status or go through consular processing to become lawful permanent residents.

This document displays something called a priority date, which is the date when the immigrant petition is submitted to USCIS or the Department of State. It’s like a place in line, which determines when an applicant can proceed. Priority dates show the cutoff dates for visa availability.

Let’s take a look at some figures from a recent Visa Bulletin and what these mean for investors.

This shows that Chinese and Indian investors who invest in the unreserved category are likely to have to wait years before they can submit Form I-526 or I-526E. After they file, they will probably have to wait additional years for a visa to become available so they can adjust their immigration status.

The two most important forms in the EB-5 process are the I-526/I-526E and I-829. The current processing time for each of these forms is more than four years.

This means that even if you are from a country with no visa backlog, processing times mean investing in the unreserved category can easily take eight years or longer.

If possible, EB-5 petitioners from high-demand countries should seek to invest in a rural TEA project. This will speed up the EB-5 process and lower risk.

Get Your EB-5 Set-Aside Rural Green Card With EB5AN

Pursuing a rural set-aside visa under the EB-5 program is one way to gain lawful permanent residence in the United States faster than most other immigrants.

But there’s far more to the EB-5 process than this. You can save yourself time, energy, and money by collaborating with a professional EB-5 firm like EB5AN. We have many rural EB-5 projects to offer for interested foreign investors.

To learn more about the EB-5 program, book a free call with us today.