A Guide to EB-5 Set-Aside Visas and Priority Processing

By investing in job-creating projects, foreign nationals can get a U.S. Green Card through the EB-5 Immigrant Investor Program.

Rural and high-unemployment targeted employment area (TEA) projects are two of the more popular options for EB-5 investors.

This is because the EB-5 Reform and Integrity Act of 2022 (RIA) introduced visa set-asides for rural and high-unemployment (urban) TEA projects, as well as select infrastructure projects.

This offered investors reserved visa quotas that currently have no backlogs, which helps them avoid delays in getting their Green Cards.

This article will discuss how EB-5 set-asides work, the differences between rural and high-unemployment projects, and what investors should consider when choosing a project.

Why Backlogs Are a Problem for EB-5 Investors

In the EB-5 program, a backlog happens when more investors apply for immigrant visas than the number of visas available in a given year. Because EB-5 visas are capped annually and also limited by country of birth, investors from high-demand countries can face long waiting periods, sometimes many years, before they can receive a green card.

During this time, investors and their families may remain stuck with conditional permanent residence status. This leaves them at risk of their child(ren) turning 21 before their green card is approved. It also leaves them uncertain about work, travel, and long-term planning.

Backlogs do not usually affect whether an EB-5 project is approved, but they significantly delay immigration benefits. This is why set-aside visas are important: they reserve visa numbers for specific project types, helping certain investors avoid or reduce these long waits.

The Benefits of EB-5 Set-Aside Visas

When Congress reauthorized the EB-5 Regional Center Program in 2022, it introduced three categories of visa set-asides for the total number of EB-5 visas:

• 20% for investors in rural projects,
• 10% for investors in high-unemployment area projects, and
• 2% for investors in infrastructure projects.

These set-aside categories offer reserved visa quotas for investors, with the additional benefit of priority processing for rural TEA investors. This means that EB-5 petitions for rural projects are processed at a much faster pace.

For investors from countries facing longer visa wait times, such as India and China, selecting rural projects is a good strategy to avoid these delays due to the availability of reserved visas and faster petition processing.

Aside from the set-aside quota benefits, rural and urban TEAs qualify for the reduced investment amount of $800,000 as opposed to the regular minimum capital investment of $1,050,000.

Understanding Rural and High-Unemployment Areas

Before making an investment decision, it’s important to understand how the U.S. law defines rural and high-unemployment areas.

Rural Areas

To be designated as a rural area, a location must have a population of no more than 20,000, must not be adjacent to a city or town with 20,000 or more residents, and must fall outside of a metropolitan statistical area as defined by the most recent 10-year U.S. census.

High-unemployment areas

A high-unemployment TEA is defined as an area where the average unemployment rate is 150% higher than the national average at the time the investor submits their EB-5 petition.

Investing in Rural TEA Projects

Investing in a rural TEA project offers significant advantages, making it an ideal choice for foreign investors looking to speed up their immigration process.

Let’s take a deeper look at these benefits.

Priority Processing

As mentioned above, rural EB-5 investments are eligible for priority processing of Form I-526E by USCIS.

Under the RIA, compared to other EB-5 investment categories, rural TEA petitions are processed first, allowing investors to experience the shortest wait times.

Thanks to this expedited processing, many EB-5 investors and their families have obtained U.S. Green Cards within just a few months.

Largest Reserved Visa Quota

Another major benefit of investing in a rural TEA project is the high availability of visas. 20% of EB-5 set-aside visas are for rural projects, the highest quota among the three reserved categories.

Historically, the demand for rural EB-5 projects has been lower than for high-unemployment TEA projects, meaning this reserved quota is likely to remain available longer, reducing the risk of backlog.

Investing in High-Unemployment TEA Projects

Before the RIA introduced significant incentives for rural TEA investments, high-unemployment urban TEA projects dominated the EB-5 market.

Typically, large real estate urban TEA projects developed by major companies were considered a safe option for EB-5 investors as they were often fully capitalized and had significant job creation.

Post-RIA, although there is an increase in the demand for rural TEA investments, urban TEA projects continue to remain popular.

However, since the visa allocation for high-unemployment TEA investments is limited to just 10% of the total EB-5 visas, this category could quickly become oversubscribed, leading to lengthy processing delays, particularly for investors from China and India.

Investing in Infrastructure Projects

The EB-5 infrastructure project investment category was introduced by the RIA in March 2022.

This category includes projects managed by federal, state, or local government agencies focused on public works development. The goal is to promote infrastructure growth across the United States.

Investors in qualifying public infrastructure projects can benefit from a reduced investment threshold of $800,000 and have access to 2% of the annual EB-5 visa quota through reserved visa set-asides.

Since infrastructure project investments are still relatively new, there is some uncertainty surrounding the criteria for eligible projects. The demand has been low, with only a limited number of projects meeting the infrastructure classification so far.

What Is the Current State of EB-5 Set-Aside Categories?

Since April 2022 there have been 12,986 post-RIA I-526E filings, split almost evenly between rural and urban projects. However, rural I-526E petitions are being approved much faster than urban petitions.

Using a conservative assumption of 2 visas per petition, total post-RIA demand already exceeds the yearly visa supply in both rural and urban set-aside categories, implying multi-year backlogs even if demand stopped today.

Based on current filing volumes and processing trends for I-526E petitions in both rural and urban set-aside categories, backlogs are expected to develop in each. Investors from China and India are likely to experience notable delays before obtaining their Green Cards. The rural set-aside backlog is expected to resolve more quickly.

In the urban set-aside category, delays are expected to be more severe for both Indian and Chinese nationals. This is largely because urban projects receive only 10% of annual EB-5 visas, compared to 20% allocated to rural projects.

At present, rural EB-5 investors benefit from fast processing times, sometimes as short as 4–9 months. Investors in both categories who are already in the U.S. may still adjust status and quickly receive work and travel authorization.

For those considering EB-5, acting now is critical. Retaining immigration counsel and preparing source of funds documentation early can help secure benefits before backlogs take effect. Filing even a few months sooner could translate into receiving a Green Card years earlier.

Why an Informed Decision Matters

The EB-5 program offers great opportunities for foreign nationals looking to obtain U.S. residency through investment. Whether investing in a rural or high-unemployment TEA project, it’s important to weigh your priorities and assess your goals. Each investor’s situation is unique, so there’s no one-size-fits-all solution.

An informed decision requires careful consideration of both the benefits and risks of each project type. Investors who take the time to research their options and speak with experienced professionals are more likely to set themselves up for a greater chance of success.

EB5AN has helped more than 2,700 families from 70+ countries become lawful permanent residents of the United States. Our expert team has more than a decade of experience and offers clients first-rate, low-risk EB-5 regional center projects with a 100% USCIS project approval rate.

If you would like to know more about your EB-5 investment options, book a free call with our expert team today.