Major Reform of the EB-5 Program: Important Updates

In March 2022, the United States Congress passed a significant piece of legislation titled the EB-5 Reform and Integrity Act of 2022. This law made major changes to the EB-5 Immigrant Investor Program. Its goal is to improve transparency, increase oversight, and make the process safer and easier for foreign investors.

Here’s an overview of the key changes and what they mean for prospective EB-5 applicants:

EB-5 Program Extended Through September 2027

The law officially reinstated and extended the EB-5 Regional Center Program through September 30, 2027.

This long-term reauthorization brings greater stability to the program. Investors, developers, and immigration professionals can now plan with more confidence.

Adjustment of Status Now Possible from Within the U.S.

This is one of the most important updates for investors already living in the United States.

Under the new law, investors can now file Form I-485 (Adjustment of Status) at the same time as their EB-5 petition (Form I-526E).

This provides access to several major benefits before the green card is officially granted:

  • Remain legally in the U.S. while the petition is pending
  • Receive a work permit (Employment Authorization Document)
  • Obtain a Social Security Number (SSN)
  • Apply for a driver’s license, credit cards, and bank loans
  • Enroll in colleges or universities
  • Travel internationally with advance parole
  • Start or join a business, or accept employment

This update allows investors and their families to enjoy most of the rights and benefits of lawful permanent residents while their EB-5 petition is being processed.

New Minimum Investment Amounts Established

The Reform Act significantly revised the minimum investment thresholds for EB-5 applicants. These new amounts are:

  • $1,050,000 – The new standard minimum investment amount for projects not located in targeted areas
  • $800,000 – The reduced minimum investment for projects located in Targeted Employment Areas (TEAs), which include rural areas or areas with high unemployment
  • $800,000 – Also applicable to projects sponsored by designated Regional Centers, if the project is in a TEA

These new figures went into effect upon the law’s passage and are now the baseline for all EB-5 petitions moving forward.

Investment Amounts Will Adjust for Inflation

The law now includes a provision for periodic adjustment of investment thresholds based on inflation. However, the first scheduled increase cannot take place before January 2027, offering a window of opportunity for investors to act before higher minimums potentially take effect.

Reserved Visas for TEA Projects

The updated law creates a set-aside of visa numbers specifically for TEA projects, giving priority to investors who choose to invest in rural areas or areas with high unemployment. This means:

  • Applicants in these categories may experience faster processing times
  • Unused visas in these reserved categories will eventually roll over into the general EB-5 visa pool if not allocated in a given fiscal year

This change is aimed at promoting investment in underserved communities and balancing the geographic distribution of EB-5 capital.

Enhanced Anti-Fraud Measures

To protect investors and maintain the program’s integrity, the law introduces stricter oversight and enforcement mechanisms. Notably, the U.S. Department of Homeland Security (DHS) now has an authorization to conduct site inspections and audits to ensure that EB-5 projects and stakeholders are operating in compliance with U.S. law.

Increased Oversight of Regional Centers

The legislation also strengthens regulatory controls over Regional Centers, which are entities authorized to pool EB-5 investments for qualifying projects. Under the new rules:

  • Regional Centers must comply with enhanced reporting and transparency requirements
  • Principals, managers, and project developers involved with the Regional Center must undergo background checks and vetting
  • USCIS has more power to suspend or terminate noncompliant Regional Centers

These measures are designed to reduce fraud and ensure the legitimacy of projects promoted under the EB-5 program.

A New Era for EB-5 Investment Immigration

The EB-5 Reform and Integrity Act marks a new era for investment-based immigration. With stronger oversight and more transparency, the U.S. government aims to protect both investors and the integrity of the EB-5 program.

These updates also make the process more flexible and practical. Especially for investors already in the U.S., the ability to adjust status without leaving the country is a game-changer.

“With these updates in place, now is the best time to apply for an investment-based Green Card!”

If you are considering applying for an EB-5 visa, it is important to work with a qualified immigration attorney who can guide you through the new regulations, assess your eligibility, and help you take full advantage of the opportunities now available under this updated program.

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