The AIIA (American Immigrant Investor Alliance) recently released the Consolidated Appropriations Act, 2022, & Division BB which includes the EB-5 Reform and Integrity Act of 2022.
EB-5 Regional Center program will be reauthorized with the Omnibus on March 15, 2022. The omnibus also includes FIFPA language in ‘section 108 of Division BB’ for helping the investors.
The American Immigrant Investor Alliance had predicted a “bank run” which states that if EB-5 investors’ green cards have been denied because of the program’s expiration but if their bill is passed, those investor immigrants will still be able to return to help build the American economy because they are allowed to invest in the revised program.
Major Implications of EB-5 Investor Visa Program Bill
The EB-5 program allows the investors along with their spouses & unmarried children under 21 to apply for a Green Card for permanent residence if they fulfil the following conditions:
- If the person is ready to make the necessary investment in one of US’ commercial enterprises; or
- If the person is planning to create 10 permanent full-time jobs for qualified U.S. workers.
The EB-5 Program was initiated in 1990. However, it was created by Congress & was initiated to stimulate the U.S. economy through capital investment by foreign investors and for more job creation. However, in 1992 the Immigrant Investor Program has been created by Congress which was also known as the Regional Center Program.
This program sets aside some EB-5 visas for the participants who want to invest in commercial enterprises which are associated with regional centres and are approved by USCIS based on proposals for promoting economic growth.
However, this program was halted in June 2021 & the investors have been awaiting its revival. But, now the new legislation has arrived which will revive the Regional Center program while introducing other integrity measures which will be applied to all parts of the new EB-5 program.
Major Implications of EB-5 Investor Visa Program Bill
The EB-5 Investor Visa Program Bill was indeed passed by Congress & has been enacted on March 12th, 2022. Here are some major Implications for Immigrant Investors:
In the first summary of the bill, it was signalled that this bill will be passed as a part of Omnibus legislation and this bill will be having major implications for:
- Existing and future investors,
- Regional centres,
- Developers, and
- Promoters.
However, in a later summary of the bill, the authors laid out the contours of the bill and in that summary, the Act that was finally passed has implications as follows:
Implications for Existing Investors:
- The investor immigrant petitions which are pending right now will not be subject to the new rules as well as higher investment amounts.
- The adjudication of these petitions along with the adjustment of status applications & consular processing will resume once the bill will be enacted.
- The special note that was passed regarding the final legislation was the approval of concurrent filings of EB-5 petitions along with the adjustment of status applications, employment authorization, & travel documents.
Implications for Future Investors:
- The investment amount which will be required for TEAs (targeted employment areas) or “infrastructure projects” will go up to $800,000, whereas the investment amount will be $1,050,000 for other kinds of projects.
- The grandfathering provisions will be directing the USCIS to continue to process EB-5 petitions in case there will be a future EB-5 program lapse. However, this will be applicable as long as the EB-5 petition is filed by September 30, 2026.
- The EB-5 Investor Visa Program Bill will set aside 20% of total EB-5 visa numbers for investments in rural areas only whereas it will keep aside 10% for investments in high unemployment areas. The 2% investments will be for the infrastructure projects.
- The bill also protects the dependent children who are aging out in certain circumstances.
- However, with investor immigrant petitions, concurrent adjustments of status filings are also permitted.
- The gifts are also permitted in this new bill, & gifting is not just limited to familial relations.
- The source of funds requirements is applied to the capital investments, administrative fees, & any other fees that are associated with the investment.
Implications on Regional Centers
- Caps will be placed on some indirect & construction jobs.
- Before submitting an individual investor immigrant petition, an exemplar application must be filed.
- TEA letters are valid for 2 years and the Regional Centers (RC) must have been audited by the USCIS at least every 5 years.
- Redeployment is also permitted outside RC geography in some cases. However, it is subjected to regulations.
- A person who has committed certain crimes or has been subjected to sanctions by certain state or federal enforcement agencies can be prohibited from RC involvement.
- A disclosure will be required of third-party agent fees as well as involvement in a project.
- If direct and third-party promoters need to join the bill then they must register with the USCIS.