EB-5 visas are broadly divided into two categories: unreserved and reserved visas. However, several subcategories exist within the EB-5 visa category. These categories are designated based on investment location and type.
In this article, we’ll discuss the types of EB-5 visas and how investors can choose the best one for themselves.
Unreserved EB-5 Visas
Reserved EB-5 Visas
Who Qualifies for an Unreserved EB-5 Visa?
Who Qualifies for a Reserved EB-5 Visa?
When Does an Investor Choose an EB-5 Visa Type?
How to Choose the Right EB-5 Visa Class
EB5AN Can Guide You in Choosing the Right EB-5 Visa
Unreserved EB-5 Visas
Before the EB-5 Reform and Integrity Act of 2022 (RIA) was enacted, EB-5 visas were grouped into four classes corresponding to pre-RIA targeted employment area and regional center investments. These four categories were as follows:
- Employment creation outside a targeted area (C5)
- Employment creation in a targeted area (T5)
- Investor Pilot Program not in a targeted area (R5)
- Investor Pilot Program in a targeted area (I5)
In their reports, the U.S. Department of State Visa Office now groups these classes as subsets of the unreserved visa category.
In the post-RIA EB-5 landscape, EB-5 unreserved visas constitute EB-5 investment that does not qualify for set-aside visas. These visas make up 68% of the annual EB-5 allocation and require an investment of $1,050,000.
Being the oldest and largest category of EB-5 visas, there are backlogs in the unreserved category for countries with high EB-5 demand like India and China. Because of these backlogs, the visa wait times extend to about a decade for Chinese applicants and over 55 months for Indian applicants.
Reserved EB-5 Visas
The introduction of a reserved “set-aside” visa category is one of the significant changes brought about by the RIA. This provision reserves 32% of the annual EB-5 allocation as set-aside visas for EB-5 investments within locations in need of job creation and economic development. These locations are called targeted employment areas (TEAs).
The set-aside visa category consists of three categories: rural, high-unemployment, and infrastructure set-aside visas. EB-5 investors benefit from a lower investment threshold of $800,000 when they invest in a TEA.
Rural Set-Aside Visas
Of the 32% set-aside visa allocations, 20% is reserved for rural TEA EB-5 projects.
Rural TEAs are areas with populations of less than 20,000 that do not share boundaries with any municipality with a population of 20,000 or more and are not located within a metropolitan statistical area (MSA).
In addition to the benefits of set-aside visas and a lower investment amount, investors in rural TEAs receive priority processing by the United States Citizenship and Immigration Services (USCIS).
High-Unemployment Set-Aside Visas
The RIA allocates 10% of the annual EB-5 visas as set-aside visas for EB-5 investments in high-unemployment areas.
High-unemployment areas, also known as urban TEAs, are areas that have unemployment rates at least 150% of the national average.
Like rural investors, high-unemployment TEA investors benefit from a lower investment threshold. However, USCIS priority processing does not extend to high-unemployment TEA investments.
Infrastructure Set-Aside Visas
This category consists of designated infrastructural development projects.
The RIA reserves 2% of the set-aside visas for EB-5 infrastructure investments. However, USCIS has yet to provide clear and comprehensive directives concerning the kinds of projects that qualify under the infrastructure category and their requirements. As a result, this category currently remains unpopular with EB-5 investors and stakeholders.
Who Qualifies for an Unreserved EB-5 Visa?
All pre-RIA investors fall under the unreserved visa category regardless of their investment amount, location, and project type.
EB-5 investors who filed their I-526E after March 2022 can fall under the unreserved category depending on their investment type and amount. Investments in areas not qualifying as TEAs are typically classified under the unreserved category.
Investors from low-demand countries who want to invest in economically developed areas can opt for projects in the unreserved category. Their approved visa class will be listed as RU or NU on their I-526E approval notice.
While an unreserved visa may be a viable option for investors from low-demand countries, it’s not ideal for investors from high-demand countries like China and India. EB-5 investors from these countries already face heavy visa retrogression in the unreserved category.
And because of these heavy backlogs, Chinese and Indian applicants already in the U.S. typically cannot concurrently file for adjustment of status under the unreserved category.
Who Qualifies for a Reserved EB-5 Visa?
The reserved set-aside visas are open to investors of all nationalities who filed their I-526E petitions after March 15, 2022. This category offers investors from high-demand countries like China and India a way to escape the backlogs and prolonged wait times they would otherwise face in the unreserved category.
Although there’s been a high volume of applications for the high-unemployment category in particular, the priority date is still current for all set-aside visas. Many petitioners, however, have not gotten to the visa application stage yet, and there may be potential backlogs when USCIS adjudicates the EB-5 visas of current applicants. Therefore, it’s best to start your EB-5 journey now to avoid wait times in the future.
When Does an Investor Choose an EB-5 Visa Type?
The choice of an EB-5 visa type starts with your choice of EB-5 project. You must carefully choose an investment within a qualified rural or high-unemployment TEA or one that qualifies as an infrastructure project to be eligible for a set-aside visa.
This is one of the reasons choosing an EB-5 investment requires thorough due diligence. USCIS determines whether a project qualifies as a rural or high-unemployment TEA project when adjudicating a project’s Form I-956F application. When conducting preliminary research, you can demand a project’s I-956F approval notice to see what category of visa USCIS approved it for before investing. You’ll also be required to check one or more boxes on your Form I-526E indicating the investment category in the project’s I-956F.
When you submit your I-526E petition, you’ll choose a visa category based on the investment location, and USCIS will confirm this upon approval.
How to Choose the Right EB-5 Visa Class
Choosing the best EB-5 visa class starts with selecting an EB-5 project within your desired investment class. The EB-5 project you invest in forms the bedrock of your EB-5 process. It determines your visa class, EB-5 Green Card processing time, ability to create and sustain the required jobs, and chances of getting your money back.
Therefore, selecting an EB-5 project requires thorough due diligence to ensure that the project is viable, well-financed, and qualifies as a rural or high-unemployment TEA project. This will require careful evaluation of the project’s offering documents and financial statements, the developer’s history and experience, and the regional center.
Due to the complexities of the process, you may need help carrying out this due diligence. You’ll need the assistance and counsel of certain EB-5 professionals.
- Immigration Attorney: Your EB-5 attorney will help you evaluate a project to ensure it meets the requirements for an EB-5 visa. They’ll also help you complete and file your Form I-526E and gather relevant documentation to prove your legal source of funds.
- Financial Advisor: An EB-5 financial advisor can help evaluate the project offering and financial statements to determine the project’s viability and associated risks.
- Regional Center: A good regional center will be transparent about their projects and will have several investment options you can choose from based on your immigration and financial goals.
EB5AN Can Guide You in Choosing the Right EB-5 Visa
Each EB-5 visa type has unique benefits that suit specific investors. When choosing an EB-5 visa type, you should consider factors like your nationality, processing times, current immigration status, and how involved you’ll want to be in the new commercial enterprise. Because of the complexity of these various factors, you should seek professional guidance early on so as to avoid unnecessary mistakes and delays.
EB5AN can guide you in choosing the best EB-5 investment category for your situation. We’ve helped over 2,300 families relocate successfully to the U.S. as permanent residents. We provide first-rate, low-risk regional center TEA projects with a 100% USCIS approval rate to date.
Book a free one-on-one consultation with our EB-5 experts today for more information on EB-5 investment categories and help in choosing the right one for you.
