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EB-5 Reform and Integrity Act of 2022 Highlights

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Published   01:22 PM 17 March 2022
Updated    10:22 AM 26 June 2022


President Biden has signed the omnibus spending bill, which reauthorizes the EB-5 Regional Center Program until September 30, 2027. The EB-5 Reform and Integrity Act of 2022 includes a number of significant changes to the EB-5 program:

  • Regional Center reauthorization is effective 60 days after enactment, at which time new I-526 petitions based on a Regional Center sponsor may be submitted.

  • The investment requirement will increase to $800,000 for projects qualified as Targeted Employment Areas (TEAs), or “infrastructure projects”. All other projects will have an investment requirement of $1,050,000.

  • TEA designation will be determined solely by the U.S. Citizenship and Immigration Services (USCIS), to be valid for 2 years.

  • Regional Centers are required to obtain project approval from USCIS before I-526s can be filed.

  • Previously filed petitions are grandfathered under existing rules.

  • Petitions filed by September 30, 2027, will be grandfathered and USCIS must continue to process these cases even in the event of another lapse in the program.

  • Petitioners are eligible to file concurrent I-485 Adjustment of Status in the U.S. and will be able to work and travel while their petitions remain pending.

  • 20% of EB-5 visas are reserved for rural projects, 10% are reserved for high unemployment areas, 2% are reserved for infrastructure projects.

  • Indirect jobs can account for up to 90% of total job creation, and construction jobs lasting less than 2 years can account for only 75%.

  • The period to meet the job creation requirement is extended for 1 year; must be met within 3 years of the Investor obtaining Conditional LPR status.

  • Investors are subject to protections against a failed project for reasons of fraud. Protections must be claimed within 180 days.

  • Source of funds documentation must now include the source of the administrative fee, along with 7 years of tax returns. Loans or gifts must be made in “good faith.” And any party who transferred EB-5 investment funds on behalf of the investor must be identified.

Please note that the new requirements have not yet been fully delineated. The industry is awaiting further USCIS guidance and other materials. Additional updates will follow.

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