EB-5 Reauthorization 2022
The article discusses the EB-5 Reauthorization of 2022.
The EB-5 Investor Program provides green cards to foreign individuals who make a required investment in the United States. To qualify for the EB-5 Visa, the investor can make a Direct investment into a U.S. business or invest in a Regional Center project.
The Regional Center Program which is the most popular among investors lost its authorization when Congress failed to reauthorize the EB-5 Regional Center Program before its expiration on June 30, 2021.
To understand, the EB-5 Regional Center Program is not permanent program of the United States government, and instead must undergo periodic reauthorizations every few months to couple years.
Congress reauthorizes the EB-5 Regional Center Program in 2022
Congress reauthorized the EB-5 Regional Center Program. On March 15, 2022, President Biden signed into law the Consolidated Appropriations Act of 2022 which included the EB-5 Reform and Integrity Act of 2022.
The EB-5 Reform and Integrity Act of 2022 makes dramatic and sweeping changes that rewrite many aspects of the prior EB-5 Investor Program, governing both Direct and Regional Center (RC) investments.
EB-5 Reform and Integrity Act of 2022
The changes in the new law for EB-5 Investor Program 2022 are:
- EB-5 Reauthorization 2022 of Regional Center Program until September 30, 2027. The EB-5 Regional Center program allows for passive pooled investments in Regional Centers, which have to be authorized by the U.S. government, and can invest in various commercial projects, including real estate. Aside from Regional Centers, passive investment will be permitted in infrastructure projects that will be administered by US governmental entities.
- USCIS resumes processing pending EB-5 Regional Center petitions that were filed before the previous Regional Center Program expired in June 2021.
- New reporting and disclosure requirements by EB-5 Regional Centers to both USCIS and EB-5 investors. Regional Centers are subject to regular audits and enhanced recordkeeping obligations.
- The EB-5 Reauthorization 2022 requires promoters and overseas agents of Regional Centers to register with USCIS and report commission fees that they collect from investors and/or Regional Center sponsors.
- The minimum investment amount increases to $1,050,000 for standard or non-TEA investment and to $800,000 for rural and high unemployment area investments. Beginning January 1, 2027, and every 5 years thereafter, the minimum investment amount will be subject to increases based on increase in Consumer Price Index which measures inflation. For projects in high unemployment areas and infrastructure projects, the minimum investment amount will be increased to 60% of the standard investment minimum.
- TEA (high unemployment area) is determined by USCIS not by the government of the individual US states.
- Concurrent filing of EB-5 petitions and adjustment of status (green card) applications. EB-5 investors who are currently in the US can file their EB-5 petitions at the same time as their applications for adjustment of status to permanent residence, or file an adjustment of status with a pending EB-5 petition. The investors can obtain employment authorization and travel document while the case is pending.
- The new law sets aside 32% of the annual EB-5 immigrant green card quota for specific types of EB-5 projects including:
- 20% are reserved for investors in rural areas
- 10% are reserved for investments in high unemployment areas (TEAs)
- 2% are reserved for investors in qualifying infrastructure projects run by US governmental entities
- Priority processing for rural investments. Investments made into a rural area will have faster processing.
- Investor protections. Investors can proceed with alternative investments if the Regional Center, new company, or job creation facility closes.
- Redeployment. If a reinvestment is required before the investor’s conditional permanent residence is complete, it is now permitted anywhere in the United States.
Malescu Law can assist
We are closely monitoring the USCIS implementation of the EB-5 Reform and Integrity Act of 2022 and EB-5 Reauthorization 2022 to assist foreign individuals with the application for EB-5 visa and green card and to provide support and guidance throughout the entire EB-5 process. You can learn more about obtaining a green card through EB-5 Investor Visa here.
If you are considering obtaining a US green card through an EB-5 investment, contact our experienced immigration lawyers in Miami, Florida USA or schedule an appointment to discuss your case in light of the new law, the EB-5 Reform and Integrity Act of 2022 and EB-5 Reauthorization of 2022.
Malescu Law P.A. – Business & Immigration Lawyers