Key 2022 updates to the EB-5 Visa Program

Mar 16, 2022

BIG NEWS IN THE EB-5 WORLD!!!

Re-authorization occurred March 11, 2022, and is locked in for 5 years.

As you are probably aware, the EB-5 Visa Program was re-authorized on March 11, after lapsing at the end of June 2021.

BAI Capital CEO Arturo Venti sent out a short email last Friday outlining the key changes; today we go into a bit more detail on how the new bill, re-authorized until 2027, will benefit you.

Let’s go!

 

Key 2022 updates to the EB-5 Visa Program

– more transparency, security, and accountability for YOU

The bill will be effective 60 days after President Joe Biden signed it on March 11, 2022. In the meantime, USCIS will turn the components of the bill to policies and practices.

Let’s review the new 39 page EB-5 Bill according to the 3 main stakeholders:

  1. New EB-5 Investors
  2. Existing EB-5 Investors
  3. Changes to the Regional Centers and Fund Administration

 

Changes for new EB-5 investors

Investment amount status

For projects located in targeted employment areas (TEAs), the minimum investment amount will be increased to $800,000. For projects not located in TEAs, the minimum investment amount will be $1,050,000.

Program Expiration

The EB-5 Program is re-authorized, locked in, and renewed for 5 years.

The investment amounts – and program – will stay fixed for 5 years, until 2027, when they will be raised USD 50,000 per year according to inflation.

Filing timelines

The bill tells USCIS to charge what it takes to process various filings between 90 and 240 days, with the shortest times for investors filing I-526 petitions after project requests by RCs.

Accountability

Eligible investment projects are screened, audited, and tracked.

Regional centers will be required to file annual compliance certifications, which will include statements of compensation paid to agents, finders, or broker-dealers along with their contact information.

An EB-5 Integrity Fund will be established to provide for monitoring, investigating, and ensuring compliance with the program.

 

Updates for those already invested in EB-5 Program

Grandfathering

The bill preserves the eligibility of all pre-enactment investors as of the time they filed their I-526, for both I-526 and I-829 adjudication.

Innocent Investor Protection

The bill adds some protection for innocent investors who suffer termination or debarment of their RC, NCE, or JCE. As long as their investment arrangements were generally qualified, within 180 days of such adverse action, they can associate with replacement entities and even make additional investments to meet investment and job creation requirements without losing priority date or child status protection.

Adjustment of Status

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 thus become free to work anywhere without employer sponsorship.

 

Changes to Regional Centers and TEA designation, etc

Reserved visas

A special allocation of 20% of all annual EB-5 visas will be set aside for projects in rural area TEAs. Additionally, 10% will be reserved for projects in high unemployment TEAs, and 2% will be set aside for qualified immigrants who invest in infrastructure projects. All with unused applications will carry over to the next year.

Material changes to a project

Regional centers must report material changes to projects in their annual report. The bill reinforces USCIS policy that a material change to business plans can require denial or revocation of investor petitions.

Fund administration

NCEs must maintain EB-5 capital in insured separate accounts and retain a third-party fund administrator to ensure that the capital properly flows to the job-creating activity.

Project requests

An RC must file an application for project approval, but investors can file I-526 petitions once the required project request is filed.

Capital redeployment

The bill recognizes redeployment of capital that gets paid back to the new commercial enterprise (NCE) before the end of the investor conditional residence:

  • All the required jobs were initially created, and redeployment is at risk in commercial activity
  • Redeployment is allowed throughout the U.S. rather than in approved RC area
  • The original project was implemented without material change, and the job-creating entity has repaid the capital.

Regional Center compliance & auditing

RCs must keep records and undergo USCIS audit every five years. Annual reports must include certifications of securities and other compliance and conditions including all marketing fees paid. RCs face sanctions for misstatements or noncompliance including suspension, fines, debarment of individuals, or termination. RCs must share relevant portions of annual statements with investors.

 

Today’s Takeaways

The new EB-5 bill was created to benefit all involved parties. Investors, administrators, developers, and local communities will all see advantages to the new bill, which is locked in for 5 years, will create the much-needed stability required to maintain this international investor, immigration, and job creation program.

The newly re-authorized EB-5 Program is better for investors as now, you can file a change of status while waiting for your i-526 petition response, it is a permanent law for 5 years, and it creates more transparency in the way capital is moved and invested by the Regional Centers.

Arturo Venti | CEO BAI Capital

 

The BAI Capital EB-5 Visa Advantage

BAI Capital can help your visa petition succeed with the best Florida EB-5 real estate investments. Throughout our 12-year track record in fully facilitating this process with families from all over the world, we have achieved 100% petition success.

Our team of experienced developers, immigration attorneys, financial advisors, legal representatives, award-winning architects, and builders have worked together on multiple successful EB-5 projects.

 

What makes BAI unique

Partial payments are allowed during construction

Both hard and soft assets count as capital invested in the EB-5 project. Additionally, payments can be made during the application process, up until the filing of the I-829 form.

 

Investment is developer secured with yearly fixed returns

EB-5 investors have a reciprocal incentive alongside us as the developer as we get paid after the investor in the capital waterfall of distribution. In other words, the investor payout is being secured against our performance.

EB-5 investors see minimum 4.9% annual fixed returns plus annualized payout at fund close (5-7 years) totaling a projected 10% plus annualized return on investment.

 

Choice of supply-constrained projects in hot Florida market:

Archer Place mixed-use condominium development in Gainesville Florida.

The best location, stellar demographics, backed by a diverse economy. Invest as an equity partner, receive fixed annual payouts, plus attractive annualized bonus.

Alba Club Palm Beach in exclusive Palm Beach County.

Build valuable equity in one of the premier US real estate locations. Leverage this property investment to apply for your US Green Card.

 

To begin your EB-5 application today, contact us by clicking the box below.

To answer all of your EB-5 Visa related questions, including process timeline and applicant requirements, follow this link to view our FAQs .

 

For more information on the EB-5 Program follow @ https://www.uscis.gov/working-in-the-united-states/permanent-workers/eb-5-immigrant-investor-program

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