After 8 long months of waiting, EB-5 Regional Center is confirmed to come back on (TUE) MARCH 15TH!
Thanks to Senator Grassley and Senator Leahy’s constant efforts in modifying the language of EB-5 reform and pushing for Regional Center (RC) reauthorization, as well as the strong fight that AIIA along with many other EB-5 organizations have put up, EB-5 RC is finally confirmed to be attached to the Omnibus bill that will be passed on Tuesday, March 15th, 2022.
ARCFE is a proud donor to AIIA.
With the reauthorization for EB-5 RC comes many positive changes and program reforms that will immediately go into effect on March 15th. In this article, we will summarize all the highlight changes that EB-5 investors should know about.
EB-5 RC Reauthorization Will Last Until 2027
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] For the first time ever, the EB-5 RC reauthorization will last for five years. The pilot program will not need to be reauthorized again until September 30th, 2027.
Grandfathering
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] USCIS will continue processing EB-5 cases without regard to the program being expired. This will ensure that investors will not have to go through something like the past eight month ever again.
New Investment Amounts
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] For TEA Projects: $800k
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] For Non-TEA Projects: $1.05M
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] Amounts will increase with inflation every 5 years. The best time is to invest now.
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] Most of the real estate development projects ARCFE picks to finance are qualified for TEA!
Targeted Employment Area (TEA)
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] For the most part, the definition of TEA remains the same (rural or high unemployment areas). However, now it will also include infrastructure projects.
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] TEA letters are valid for 2 years and are renewable in 2 years increments.
Reserved Visas
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] Visas are reserved for each fiscal year: 10% for high unemployment, 2% for infrastructure and 20% for rural.
Concurrent Filing for Adjustment of Status
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] Concurrent filing of adjustment of status along with I-526 petition is only available for those already in the U.S. and for all countries whose EB-5 numbers are “CURRENT”.
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] I-485 petition (Adjustment of Status) and I-526 petition (Application for Conditional Green Card for EB-5 investors) can be applied at the same time.
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] This means that EB-5 investors, who are also international students in the U.S., will not have to worry about their status post-graduation.
Source of Funds
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] Source of funds now also include administrative fees and other investment related expenses.
Indirect Job Limits
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] No more than 90% of total jobs created can be indirect jobs for RC investors.
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] Only 75% of jobs can be impacted from construction lasting less than 2 years.
Increase Regional Center Regulation
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] Regional centers are now subject to more regulations including: (1) being audited every 5 years, (2) no foreigner or foreign government are allowed to own a regional center, (3) no one with a criminal record is allowed to be involved in a regional center, (4) file annual reports to include certifications of securities, other compliance and conditions including all marketing fees paid, (5) EB-5 Integrity Fund will be established and each RC will need to pay an annual fee of $20k, or $10k for those with 20 or fewer investors per year, and many other regulations.
Innocent Investor Protection
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] This adds protection to investors who suffer termination or debarment of their regional center, New Commercial Enterprise (NCE) or Job Creating Entity (JCE).
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] As long as their investment arrangements were generally qualified, within 180 days of such adverse action and notice, they can associate with replacement entities and make additional investment if needed without losing priority date or child status protection.
[sf_icon image=”fas fa-arrow-right” character=”” size=”small” cont=”no” float=”left” color=”#036CB2″] Children of investors who gained conditional residence and then lost it by entity termination or debarment or got I-829 denied may keep their child status in connection with a second petition filed by the parents within one year.
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