EB-5 Reform and Integrity Act of 2022 Set To Become Law

 

The EB-5 Regional Center Program expired in June 2021.  Since then, the EB-5 Regional Center Program has been in purgatory, with applicants unsure of their status and rights.

As of earlier this week, the United States House of Representatives and the U.S. Senate have passed an appropriations bill which includes 39-pages of text reauthorizing the EB-5 Regional Center Program, known as the “EB-5 Reform and Integrity Act of 2022.”

The text of the legislation can be found here:

https://docs.house.gov/billsthisweek/20220307/BILLS-117HR2471SA-RCP-117-35.pdf

(in the 2741 page text, the section on EB-5 reform begins on page 2609).

When signed into law by President Biden, the EB-5 Reform and Integrity Act of 2022 will make the following changes:

• EB-5 Regional Center Program reauthorized through September 30, 2027
• $800,000 minimum investment if invested in a Targeted Employment Area (TEA)
• $1,050,000 minimum investment if invested outside of a TEA
• Beginning 2017, the minimum investment amounts re-adjust for inflation every five years
• Department of Homeland Security determines what qualifies as a TEA
• 20% of EB-5 visas allocated to investment in rural areas, 10% of EB-5 visas allocated to investment in high-unemployment areas and 2% of EB-5 visas allocated to infrastructure (government public works) projects
• Adjustment of Status available for new I-526 applicants already residing in the U.S.
• New protections for children who reach age 21 during the EB-5 visa process
• New fees, faster processing times
• Integrity and reform protections to monitor and ensure the integrity of the Regional Center Program
• Clarification on source of funds pertaining to gifts and administration fees
• Processes put in place for reallocation of investment capital if a regional center or new commercial enterprise closes

The new bill makes clear those who previously participated in the EB-5 Regional Center Program will be protected and their applications will be processed.

This is great news for the EB-5 Regional Center Program.  With new legal guidance in place, immigrant investors can know they can participate in the EB-5 Regional Center Program, under a regulated regime which provides for integrity and efficiency.