The article discusses the recent news regarding EB-5 reauthorization on March 15, 2022. In March 2022, President Biden signed into law the Consolidated Appropriations Act of 2022 which included the EB-5 Reform and Integrity Act of 2022. The 2022 law makes dramatic and sweeping changes that rewrite many aspects of the prior EB-5 Program rules governing both Direct and Regional Center (RC) investments. The main changes to the EB-5 investor-based green card program include:
- EB-5 Reauthorization of Regional Center Program until September 30, 2027. The program allows for passive pooled investments in Regional Centers, which have to be authorized by the US 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.
- The 2022 law also allows US immigration to resume processing pending EB-5 Regional Center petitions that were filled before the previous Regional Center Program expired in June 2021.
- The law also establishes new reporting and disclosure requirements by Regional Centers to both US Citizenship & Immigration Services and EB-5 investors. Regional Centers will be subject to regular audits and enhanced recordkeeping obligations.
- The EB-5 reauthorization of 2022 requires promoters and overseas agents of Regional Centers to register with US Citizenship and Immigration Services and report commission fees that they collect from investors and/or Regional Center sponsors.
- The minimum investment amount increases from $1,000,000 to $1,050,00, and more significantly from $500,000 to $800,000 for rural areas and areas with high unemployment. 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.
- High unemployment areas, officially known as Targeted Employment Areas (TEAs), will be determined by US Citizenship and Immigration Services not by the government of the individual US states.
- The new 2022 law allows simultaneous filing of EB-5 petitions and green card applications. EB-5 investors who are currently in the US, will be permitted to file their EB-5 petitions at the same time as their applications for adjustment of status to permanent residence, or file an adjustment with a pending EB-5 petition. This will enable them to obtain employment authorization and travel permissions while their cases are 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 investments in high unemployment areas (TEAs)
- 2% are reserved for investors in qualifying infrastructure projects run by a US governmental entities
At Malescu Law, we are closely monitoring the US Citizenship and Immigration Services for releasing any new guidance and policy regarding the implementation of the new EB-5 reauthorization of 2022 – the EB-5 Reform and Integrity Act of 2022. If you are a foreign investor or entrepreneur, considering obtaining a US permanent residence (green card) through investment, contact us, your trusted immigration lawyer in Miami, Florida USA or schedule an appointment to discuss your case in light of the new EB-5 reauthorization of 2022.
Malescu Law P.A. – Business & Immigration Lawyers