Recently the Congress and the Senate approved a reauthorization of the EB-5 Regional Center Program (the EB-5 Reform and Integrity Act of 2022). The EB-5 regional center pilot program which had lapsed last June 30, 2021, and now been reauthorized with some positive changes and outcomes. The EB-5 Regional Center Program allows federally authorized “Regional Centers” to pool EB-5 visa applicants’ investments to exponentially fuel U.S. local and regional economies with projects that create and save thousands of American jobs. EB-5 visas provide permanent resident status to qualified alien investors. The EB-5 Reform, and Integrity Act of 2022 does the following:
- Reauthorizes the EB-5 Regional Center Program through September 30, 2027.
- Authorizes the grandfathering of any petitions on file in the event the program was to lapse again in the future, if the EB-5 petition was filed by September 30, 2026. This includes existing investors, whose files are currently pending.
- The EB-5 investors can now include concurrent adjustment of status filings. I-526 applicants and family (EB-5) already residing in the United States can now concurrently apply for the Adjustment of Status.
- The new investment amounts will not apply to the pending I-526 petitions.
- The EB-5 investors can now join other employment-based immigrants under INA section 245(k), forgiveness of up to 180 days of status violations when they apply for adjustment.
- The Act increases the new minimum investment amount to $1,050,000, which is reduced to $800,000 if the EB-5 project is in a Targeted Employment Area (TEA) or is an infrastructure project. A TEA includes an area of high unemployment or a rural area and must qualify under the same requirements as the previous EB-5 regulations that were introduced in 2019. Beginning January 01, 2027, the minimum investment amount re-adjusts for inflation every five years.
- The Act specifies visa set-asides for rural (20%), high-unemployment (10%), and infrastructure projects (2%). Any unused visa under these three categories will carryover to the immediately succeeding fiscal year and will remain under the same category. The Act further prioritizes the processing and adjudication of rural petitions.
- The Investors can now count both indirect and direct positions for job creation purposes.
- Under the Act, “Direct” pooled investments will not be allowed, even among friends, who would all be active. And solo investors will also not be able to use indirect arrangements and indirect job creation even if sponsored by an RC.
- The Act provides protection for children who reach age 21 during the EB-5 visa process only under certain conditions.
- The Act permits gifts and are not limited to familial relations.
- Under the Act, the source of funds requirements applies to capital investments, administrative fees, and any fees “associated” with the investment.
- The projects can be changed if a regional center or new commercial enterprise is terminated.
- Under the Act, the third-party agent fees and involvement in a project needs to be disclosed.
- Each regional center will now have to (1) notify the Department of Homeland Security (DHS) of proposed changes to the center’s structure, (2) maintain certain records and make such records available to DHS for audits at least once every 5 years, (3) obtain approval for each particular investment offering, and (4) annually report to DHS.
- The Act further provides various enforcement authority to DHS and USCIS, including the ability to permanently bar an individual from participating in the regional center program. It also establishes the EB-5 Integrity Fund to fund program enforcement activities.
We will regularly update the blog as soon as any new information is available.
Disclaimer
This article aims to provide new information concerning EB-5 regional center program. This article, under no circumstances, acts as legal advice; therefore, for any further case-specific question, please contact your Attorney or the Ahluwalia Law Offices, P.C. (Team ALO).
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