Essential Updates to the EB-5 Program: What Investors Need to Know About USA Visa Changes
The EB-5 Immigrant Investor Program has long been a gateway to obtaining a USA visa, offering global investors a route to U.S. residency. Recent reforms, introduced under the EB-5 Reform and Integrity Act of 2022, aim to enhance the program’s transparency, streamline processing times, and reinforce integrity measures. These updates promise a more efficient and reliable path for investors seeking a USA visa.
Reauthorization of the Regional Center Program
A major change is the reauthorization of the Regional Center Program, which lapsed in 2021. This program allows investors to pool resources into large-scale projects managed by designated regional centers. Its reinstatement emphasizes the program’s role in providing structured, potentially lower-risk opportunities in real estate and infrastructure sectors.
Increased Filing Fees and Faster Processing
Starting April 1, 2024, USCIS has increased the filing fees for Form I-526E by 200%. This hike aims to cover rising administrative costs and improve processing efficiency. Despite the cost increase, the EB-5 program remains a relatively fast route to obtaining a USA visa.
Priority Date Retention
A significant update is the introduction of priority date retention. Investors can now retain their original priority date if they need to refile their petition. This is particularly beneficial for those from high-demand countries like China and India. This provision enhances flexibility and security in the EB-5 process, ensuring investors maintain their position in the visa queue despite setbacks.
Enhanced Compliance and Integrity Measures
The Reform and Integrity Act introduces stringent compliance measures to protect the program’s core mission. New provisions include rigorous background checks for all regional centers, principals of new commercial enterprises (NCEs), and job-creating entities (JCEs). Regional centers must also submit annual compliance certifications with detailed reports on job creation and investor fund status. USCIS has increased random audits and site visits to ensure proper management and adherence to job creation benchmarks, making the EB-5 program more secure and trustworthy.
Increased Scrutiny in the Interview Process
USCIS has intensified scrutiny in the interview stage of consular processing for EB-5 applicants. The process now requires more detailed documentation and thorough explanations of investment compliance. This increased scrutiny ensures that all aspects of the investment meet USCIS regulations, adding an extra layer of protection for both investors and the program.
Introduction of the Regional Center Integrity Fund
To bolster program integrity, USCIS has introduced the Regional Center Integrity Fund. This fund supports monitoring and oversight of regional centers to ensure compliance with legal and regulatory requirements. Regional centers are required to contribute to this fund, which finances investigations, audits, and other compliance-related activities. This fund enhances transparency and security, providing investors with greater confidence.
Investment Threshold Adjustments and Visa Set-Asides
The Reform and Integrity Act has increased the minimum investment amount for projects in Targeted Employment Areas (TEAs) from $500,000 to $800,000. Non-TEA projects now require a minimum investment of $1,050,000. Additionally, TEA designation criteria have tightened, making it harder for projects to qualify for the lower investment threshold. The program now includes visa set-asides for rural areas (20%), high-unemployment areas (10%), and infrastructure projects (2%). These set-asides offer faster processing and priority treatment for investors.
Concurrent Filing and Adjustment of Status
A significant benefit for international investors is the ability to concurrently file Form I-526 (Immigrant Petition by Alien Investor) and Form I-485 (Application to Register Permanent Residence or Adjust Status). This change allows investors already in the U.S. on a different visa to apply for a green card while their EB-5 petition is pending. This adjustment reduces the wait time for legal work and travel authorization to 3-6 months.