On March 10, 2022, U.S. Senate passed the reauthorization of the EB-5 Regional Center Program. The EB-5 Reform and Integrity Act of 2022 (“Integrity Act”) is part of the FY 2022 Consolidated Appropriations Bill and is expected to be ratified by President Biden. Once the measure is ratified, USCIS is expected to release a policy memorandum elaborating on the changes made to the EB-5 Program.

The EB-5 Regional Center Program lapsed on June 30, 2021. The Integrity Act is the first reauthorization of the program since 2015 and authorizes the EB-5 Regional Center through September 2027. Under the Integrity Act, Regional Centers are expected to:

  • Notify the Department of Homeland Security (DHS) of proposed changes to each respective Regional Center;
  • Maintain certain records and make records available to DHS for audits;
  • Obtain approval for each particular investment offering; and
  • Annual report to DHS.

The Integrity Act is intended to provide DHS and US Citizenship and Immigration Services (USCIS) with enforcement authority including the ability to permanently bar an individual from participating in the regional center program. The proposed “EB-5 Integrity Fund” will be funding the measure for enforcement activities.

Highlighting the expected changes, the Integrity Act reforms the EB-5 Regional Center Program to include:

  • Reauthorization of the EB-5 Regional Center Program through September 30, 2027;
  • A section authorizing the grandfathering of any petitions on file in the event the program was to lapse again in the future;
  • Specific visas set aside for Rural, High-Employment, and Infrastructure Projects;
  • Language to prioritize the processing and adjudication of rural petitions;
  • Language eliminating geographic limitations on investor capital redeployment;
  • Language allowing investors to count both indirect and direct positions for job creation purposes.
  • Numerous stringent new requirements for regional centers in relation to securities compliance, record keeping, ownership, and administration.
  • Regional centers will undergo a USCIS audit at least once every 5 years.
  • A new integrity fund which regional centers must contribute $10,000-$20,000 annually (depending on the size of the regional center) to allow the USCIS to investigate and monitor all of the parties within the EB-5 industry to ensure compliance.

Most importantly to investors, the new minimum investment amount will be $1,050,000, which is reduced to $800,000 if the EB-5 investment is located in a Targeted Employment Area (TEA) as well as infrastructure projects. The TEA definitions involve the 2019 rule requiring an area of high unemployment or a rural area.

An infrastructure project is a public works project in which a governmental entity is a job-creating entity that receives investment capital from the new commercial enterprise. We expect USCIS to release a policy memorandum shortly after President Biden ratifies the FY 2022 Consolidated Appropriations Bill. International Legal and Business Services Group will continue to monitor the status surrounding EB-5s.

If you have questions about the EB-5 program or any other immigration-related issue, contact us at ILBSG.

EB-5 EB-5 Reform and Integrity Act of 2022 FY 2022 Consolidated Appropriations Bill Integrity Act