LATEST EB-5 INDUSTRY UPDATE
Regional Center Program Reauthorization APPROVED & Investment amount increased to $800,000
 
After months of debate and uncertainty, the U.S. Congress has passed the “EB-5 Reform and Integrity Act of 2022” as part of the overall U.S. Omnibus Spending Bill. This act has extended the EB-5 Regional Center program through September 30, 2027, with significant changes that will impact existing and future investors. Most notably, the minimum EB-5 investment amount would increase to $800,000 from the current $500,000 for Targeted Employment Areas and Rural Areas and $1.05M from the current $1M for Non-Targeted Employment Areas for both regional center and direct EB-5 investments.
 
Some major provisions that will affect EXISTING INVESTORS include:
 
  • The new restrictions and greater investment amounts will not apply to pending I-526 petitions.
  • After the bill is signed into law, I-526 petitions, adjustment of status applications, and consular procedures will resume.
 
For FUTURE INVESTORS, a few important points:
 
  • With I-526 petitions, concurrent adjustment of status filings of I-485 fillings are allowed which means applicants currently in the US on F-1 student visa, OPT, H-1B work visa, L-1A managerial visa and other non-immigrant visas can apply for and get Employment Authorization Document (EAD) and Travel Document (TD) in 90-120 days of applying for EB-5 and become free to work anywhere without employer sponsorship.
  • For targeted employment areas (TEAs) or "infrastructure projects," the needed investment amount will increase to $800,000. The investment amount will be $1,050,000 if this is not the case.
  • If the EB-5 program lapses in the future, grandfathering laws require USCIS to continue processing EB-5 petitions as long as they are filed by September 30, 2026.
  • The bill allocates 20% of total EB-5 visa numbers to investments in rural areas, 10% to investments in high-unemployment areas, and 2% to infrastructure projects.
  • In some instances, protection for dependent children who have reached the age of majority.
  • Gifts are still allowed, and they aren't restricted to family members.
  • Capital investments, administrative fees, and any fees "connected" with the investment are also subject to source of funds restrictions.
  • If a regional center or new commercial enterprise (NCE) closes, there is a process in place to switch projects.
 
REGIONAL CENTERS can expect the following:
 
  • Caps on indirect and construction jobs have been imposed.
  • Individual I-526 applications must be presented after an I-924 application has been filed.
  • The validity of TEA letters is two years.
  • USCIS must audit RCs at least once every five years.
  • Outside of the RC geography, (maybe) redeployment is allowed (subject to regulations).
  • Persons who have committed certain crimes or who have been subject to orders or sanctions from certain state or federal enforcement bodies are prohibited from participating in RCs.
  • Third-party agent fees and involvement in a project must be disclosed.
  • The USCIS requires direct and third-party promoters to register.
  • New RC/NCE "funds administration" guidelines.
 
In addition to these, the 40 page bill includes other points that may prove interesting, such as an EB-5 Integrity Fund, which mandates USCIS to investigate "program related events and promotional activities" outside the US, among other things.
 
The new EB-5 program is certain to provide a long-term boost to the EB-5 Regional Center program. The InvestAmerica Global Team will continue to assess how this critical legislation, as well as the regulations and recommendations that will follow it, will affect EB-5 investors, regional centers, and project developers.
 
Our team is here to help! If any questions while navigating the current changes on the EB-5 program and their impacts on your investment, please don't hesitate to contact us.
We are in this together!
For more information, please contact:
[email protected] | +1 (813) 340-8737 |investamericap.com
Important Information: This is not a solicitation of securities. Securities only offered to accredited individuals by private placement memorandum. Securities offered through Sequence Financial Specialists LLC, member FINRA/SIPC. InvestAmerica is not a broker-dealer, does not offer securities and is not registered with FINRA or any other securities-regulating organizations. InvestAmerica, LLC is a subsidiary of Sequence Holdings LLC*. Certain personnel of InvestAmerica are registered with Sequence Financial Specialists LLC. This information is extracted from the Private Subscription Booklet (“SB”) and has been prepared by the management of the project and not by Sequence or InvestAmerica. There is no assurance that the investment objectives of this program will be attained, involves a significant degree of risk relating to immigration matters (including continued operation of the EB-5 Regional Center program, implementation of new EB-5 regulations, retrogression, redeployment, and others, as further outlined in the SB) and investment, including failure to achieve permanent residence and the loss of your entire investment. Financial projections are not a guarantee of future performance. All information is subject to change. Consult the SB for investment conditions, other risk factors (including conflicts of interest, lack of operating history, project completion, capitalization, real estate, economic, competition, technology, food costs, legal, insurance, consumer tastes, unfavorable location, landlord issues, franchise termination, negative reviews, tax, regulatory), minimum requirements, fees and expenses and other pertinent information with respect to this investment, which provides no significant diversification and is illiquid. Documentation supporting statements made in the body of this brochure is available upon request.

*Sequence Financial Specialists LLC professionals are committed to acting in our retail client’s best interest. For important information on Regulation Best Interest, including Form CRS and other disclosures, please visit our website at www.sequencefinancialspecialists.com.