The Immigrant Investor Program—more popularly known as the EB-5 (Employment-Based 5)—was created by the U.S. Congress in 1990 to stimulate the United States economy through capital investment by foreign investors and job creation. The EB-5 program is administered by USCIS (U.S. Citizenship and Immigration Services); it allows qualified foreign investors who meet the basic eligibility criteria such as capital investment and job creation to obtain their Green Card (Permanent Residency of the USA).
Since its launch the EB-5 Program has attracted billions of dollars in capital investment from across the world into the U.S. economy, creating millions of jobs for U.S. workers.
There was welcoming news for all EB-5 investors awaiting approval of their applications and for future investors, in early March. The program was in limbo for over 8 months since it lapsed in June 2021. The U.S. Congress passed the EB-5 Reform and Integrity Act of 2022, which authorized the program till September 30, 2027, unlike the past when the program was authorized for shorter periods. The new program increases the minimum investment required and sets reserve visa quotas for investment in rural areas, high unemployment areas, and infrastructure projects. Start your case with our team: Corporate Immigration & Work Permits
What is the investment required under the EB-5 program?
Upon execution, the new avatar of EB-5 requires an investor to invest a minimum of USD 1,050,000 in Non-Targeted Employment Areas (Non-TEAs) and USD 800,000 in Targeted Employment Areas (TEAs). An amount of USD 800,000 also applies for infrastructure projects. All these investment thresholds may be revised in 2027.
Allocations and Provisions of the EB-5 Program
Quota Allocation: 32% of the annual EB-5 quota will be reserved for specific EB-5 projects—2% for qualifying infrastructure projects governed by federal, state, or other government entities; 20% reserved for investments in designated rural areas of the United States; 10% reserved for investments in designated high-unemployment areas.
Preeminence: USCIS may give priority processing to EB-5 investments in rural areas.
Designated Targeted Employment Areas (TEAs): The U.S. Department of Homeland Security will be responsible for identifying and designating TEAs.
Protection for Foreign Investors: The new EB-5 law permits the investor to obtain the Green Card, even if the EB-5 program is terminated later by Congress or expires in the future.
Additional Fee: EB-5 investors are required to pay an additional USD 1,000 fee (Integrity Fund contribution).
To summarise, the new avatar of the EB-5 program is a huge win in terms of the reforms it brings into the existing framework—which had largely remained unchanged except for periodic increases in minimum investment requirements. If you need more information, feel free to talk to us or visit our website and for free consultation please fix an appointment with a XIPHIAS Consultant.
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