Direct EB-5 investment has always been an integral part of the EB-5 program since the latter’s inception in 1990. In fact, regional center investment was not added to the EB-5 program until 1992.

2021 has been a significant year for the EB-5 investment industry, with two crucial decisions that have had a substantial impact. On June 30, the EB-5 Regional Center Program expired; as of November 2021, Congress has yet to reauthorize the program. Previously, investing in regional center projects was the preferred method for many foreign nationals to participate in the EB5 investment industry. In the absence of this program, EB-5 investors can invest only in direct projects. This change may make prospective investors hesitant.

Moreover, on June 22, a court order revoked the EB-5 Modernization Rule, effectively lowering the minimum investment requirement to $500,000 for projects located in targeted employment areas (TEAs). This change makes the EB-5 program accessible to more foreign nationals, who can now secure permanent resident status with a smaller capital investment.

Congress is expected to bring legislation to reform the EB-5 program in the coming months. The reformed legislation may include provisions to raise the minimum threshold for EB-5 investments once more. Therefore, if EB-5 investors want to benefit from the lowered threshold, they should make a direct investment before reforms take place.

Direct Investment Will Never Expire

Although direct EB-5 investment has not been as popular as projects sponsored by regional centers, it has its own set of benefits to offer. Foreign nationals interested in relocating to the U.S. through an EB5 investment should consider these advantages.

For example, the EB-5 Regional Center Program requires reauthorization at regular intervals. Following the program’s expiry in June 2021, United States Citizenship and Immigration Services (USCIS) announced that they would no longer review I-526 petitions associated with regional centers. Foreign nationals who already invested through the regional center program find themselves in an uncertain situation, as their petitions will remain unprocessed until the government decides to reauthorize regional centers.

An investor who makes a direct investment in an EB-5 project will never find themselves in such a situation. Direct investment is an integral part of the EB-5 investment program, and it is not reliant on revalidation.

Direct EB-5 Investment Offers Greater Control

When an EB-5 investor subscribes to a regional center project, they typically have little influence over the daily management of business operations. Direct EB-5 investors, on the other hand, usually get involved in the management of the EB-5 project to which they have subscribed. In general, direct EB-5 projects are smaller and have fewer investors than their regional center counterparts, as well as fewer intermediaries. As a result, direct investors often earn a higher return on their investments.

Foreign nationals should start the EB-5 process soon to take advantage of the lowered threshold, before further changes are instated. However, the process of finding an EB-5 project that suits their purpose can be overwhelming. EB5AN is here to help investors with the entire EB-5 visa process. We have the expertise and experience required to help investors complete the process successfully. Our team of experts provides guidance in many different areas, helping investors comply with USCIS regulations and receive their green cards.

One of the many aspects of the EB-5 program that makes it popular among foreign nationals and U.S. business owners is its beneficial impact on the U.S. economy. The COVID-19 pandemic has made the importance of investment capital more apparent than ever, and thousands of U.S. businesses have benefitted from EB-5 funding. Each EB-5 investment must create at least 10 full-time jobs. Moreover, EB-5 funding is also available for troubled businesses in need of capital.

One of the most appealing aspects of the EB5 investment industry is the reduced investment threshold for projects located in targeted employment areas (TEAs), which have a great need for economic development. This provision has allowed many more foreign nationals to make an EB5 investment and thus strengthened the U.S. economy.

The EB-5 Investment Threshold for TEA Projects

As of June 22, 2021, EB-5 investors who choose projects located in TEAs can invest at only $500,000—significantly less than the non-TEA investment threshold of $1,000,000. TEAs do more than simply make the EB-5 program more accessible: through the reduced TEA threshold, foreign nationals are incentivized to invest in the areas that need EB-5 funding the most. Moreover, since every EB-5 investment must create 10 positions, these jobs are often generated in locations with little economic development.

Types of TEAs

TEAs can either be rural or high unemployment. To qualify as a rural TEA, a location cannot be located in a metropolitan statistical area (MSA) or on the borders of a municipality with a population of 20,000 or greater.

In contrast, high-unemployment TEAs must have an unemployment rate that is at least 150% greater than the U.S. national average. If, for example, the average U.S. unemployment rate were 3.66%, a high-unemployment TEA would need an unemployment rate of at least 5.49%. In addition to possessing a high unemployment rate, these TEAs must be within an MSA or an urban area with a population greater than 20,000.

Proving TEA Status

Proving the validity of rural TEAs is relatively straightforward; areas with fewer than 20,000 inhabitants qualify as such. EB-5 investors can use data extracted from the latest 10-year U.S. Census to prove that their project is in a rural TEA. Statistics from the U.S. Office of Management and Budget can also help prove a rural TEA’s validity.

However, calculating a potential TEA’s unemployment rate is more challenging. United States Citizenship and Immigration Services (USCIS) typically prefers statistics taken from the American Community Survey (ACS) or the Bureau of Labor Statistics (BLS). Since the BLS updates its data more frequently than the ACS, the former is usually the safer choice. The TEA statistics included in an EB-5 investor’s I-526 petition must be as recent and accurate as possible.

Make a TEA EB-5 Investment at $500,000

TEAs offer EB-5 investors the valuable opportunity to invest at only $500,000, but USCIS or the Department of Homeland Security (DHS) may take sudden action to raise the EB-5 investment threshold. Therefore, interested foreign nationals should identify suitable TEA projects as soon as possible. Doing so will allow them to obtain U.S. permanent resident status at a reduced price.

Business owners across the United States have enjoyed access to EB-5 investment capital since 1990. Under the EB-5 program, foreign nationals are allowed to apply for permanent resident status in exchange for investing in a qualifying U.S. business. The U.S. economy has been strengthened by billions of dollars of EB-5 investment capital during the past decades, and thousands of jobs have been created as a result of EB-5 funding. Despite the difficulties caused by the COVID-19 pandemic, the EB5 investment industry is still going strong in 2021. In fact, due to the June 2021 repeal of the controversial EB-5 Modernization Rule, the minimum EB-5 investment amount for targeted employment area (TEA) projects is only $500,000. Before the June 2021 court ruling, the investment threshold was $900,000.

As a result of the lower investment amount, many more foreign nationals now have the means to participate in the EB-5 program. This is also good news for U.S. business owners, who can now market their projects to an even larger target audience of potential EB-5 investors.

Even though EB-5 investment capital is convenient and secure, creating an EB-5 business and bringing it to market successfully may take several years. A competent team of professionals needs to be assembled to ensure compliance with all United States Citizenship and Immigration Services (USCIS) regulations. One of the most crucial steps of creating a successful EB-5 project is writing a detailed, credible business plan—USCIS evaluates EB-5 business plans carefully before granting approval.

General Guidelines for EB-5 Business Plans

In essence, an EB-5 business plan must prove that the project is financially viable and compliant with all USCIS regulations. EB-5 business owners must craft strong business plans to gain USCIS approval and attract potential EB-5 investors—if a project’s business plan is unconvincing, foreign nationals are unlikely to invest in it.

EB-5 business owners should examine the Matter of Ho court ruling, which provides an excellent example of a USCIS-compliant EB-5 business plan. The following four elements are essential to all EB-5 business plans that follow the guidelines set out in Matter of Ho.

Job Creation Projections

Creating employment is one of the main objectives of the EB-5 industry; every EB-5 investment must create at least 10 full-time jobs for qualifying U.S. workers. Therefore, it is crucial for EB-5 business owners to show how they will create the needed jobs. The business plan must include a hiring schedule, the total estimated number of jobs, and detailed descriptions of each position.

Permits and Licenses

To qualify for EB5 investment capital, EB-5 projects need numerous licenses and permits. The EB-5 business plan must prove that the project can operate legally and has received all the needed permits.

The Marketing Strategy

Every EB-5 business needs a solid marketing approach to attract EB-5 investors. Many EB-5 business owners hire foreign migration agents to find overseas investors. It is also important to create attractive, compelling marketing materials that provide key information about the offering. If the project offers an ample job cushion—that is, it plans on creating more than 10 jobs per investor—this should be noted in the marketing materials.

Economic Data

An EB-5 business plan must show that the project is financially viable. To that end, project developers must include financial projections for the project’s first five years. Of course, any predictions must be supported by reliable data or third-party sources.

As we have seen, bringing an EB-5 project to market can be challenging. Therefore, EB-5 business owners should consult with EB-5 specialists and immigration counsel. The expertise these professionals provide can be invaluable.

The EB-5 investment program offers foreign nationals from all nationalities the chance to become permanent residents of the United States. Billions of dollars of EB-5 investment funds have been poured into U.S. businesses since the EB-5 program began in 1990; investors and U.S. business owners alike recognize the many accomplishments of the EB-5 industry.

For all its merits, the EB-5 program does have to contend with several issues, including notoriously slow processing times for EB-5 visa petitions. United States Citizenship and Immigration Services (USCIS), which adjudicates all EB5 investment visa petitions, can take years to process Form I-526. This petition must prove that an EB-5 investment has been made in harmony with USCIS guidelines.

In addition to USCIS’s extended processing times, the EB-5 process can also be lengthened by requests for evidence (RFEs). USCIS sends an RFE when it deems that the information provided in an investor’s visa petition is incomplete, incoherent, or otherwise deficient. In many cases, RFEs for I-526 petitions point out issues in the EB-5 project’s business plan. We now examine common issues in EB-5 business plans and how to address these shortcomings when responding to an RFE.

Incomplete or Unclear Information

USCIS expects EB-5 business plans to provide abundant information on the project: its structure, potential for job creation, overall capital stack, and other details. Moreover, all projections must be supported by credible data. If a business plan is missing vital information, USCIS will likely send an RFE. Internal discrepancies in a business plan, such as inconsistencies regarding launch dates or the budget, may also result in an RFE.

RFEs usually specify what content is unclear or missing. EB-5 investors can either provide these materials or, in some cases, submit a new version of the business plan altogether. When the missing information is straightforward, investors can simply attach the needed documents to their response; if USCIS’s concerns are wider in scope, it may be preferable to update the whole business plan.

Minor inconsistencies within the business plan can usually be clarified without a substantial revision.

Lack of Compliance with EB-5 Regulations

The EB-5 program sets out a myriad of regulations governing the structure of EB-5 projects, how investments are made, the at risk status of the EB-5 investment, and other factors. Unfortunately, if the business plan clearly indicates a lack of compliance with USCIS guidelines, responding to the RFE won’t solve the issue. In contrast, an apparent lack of compliance may be the result of an inaccuracy or mistake in the business plan; investors in this situation should amend their business plans accordingly.

Outdated Information

As mentioned previously, USCIS may take years to adjudicate an investor’s Form I-526. Consequently, the agency may send an RFE asking for proof that the EB-5 project has complied with the job creation criteria or met other requirements. Project documents such as tax and employment records can be used to provide the needed evidence.

Investors will need to plan carefully and consult with EB-5 professionals to obtain their green cards. Admittedly, complying with USCIS regulations and gaining approval for Form I-526 can be challenging; still, the thousands of foreign nationals who have successfully relocated to the United States attest that the effort is well worth it. EB5AN offers valuable guidance to its investor clients, including RFE response consulting.

The EB-5 investment industry has afforded valuable opportunities to foreign nationals and U.S. business owners alike. In exchange for making an investment of at least $500,000 in a U.S. business, foreign nationals can apply for permanent resident status. Of course, a foreign national can be granted residency only if their EB-5 investment complies with all United States Citizenship and Immigration Services (USCIS) regulations. USCIS regulates EB-5 investments through Form I-526 and Form I-829, which investors must submit during the EB-5 process.

Project developers interested in the EB-5 industry must take care to ensure compliance with USCIS regulations. Even though raising EB5 investment funding is complex and can take several years, many U.S. businesses have benefitted from the below-market rates for EB-5 capital. To qualify for EB-5 funding, project developers must take the following steps.

Structuring an EB-5 Project

When deciding how to structure their EB-5 projects, developers must choose between offering a loan or an equity investment. All EB-5 projects involve a new commercial enterprise (NCE)—that is, the entity that receives the EB5 investment capital—and a job-creating entity (JCE). The NCE can either make a loan to the JCE or invest equity in it.

In equity EB-5 projects, investors are typically more involved in business management. This investment model is often used for smaller EB-5 projects. In contrast, most EB-5 investors choose loan projects, which are widely viewed as more secure. EB-5 investors in loan projects often play a limited role in day-to-day operations.

Once the investment type has been decided, an EB-5 project must gather several important documents, including a credible economic analysis, legal offering documents, a market feasibility study, an outline of the exit strategy for investors, and a business plan.

It is crucial for EB-5 business plans to show compliance with USCIS regulations. The Matter of Ho court ruling left a valuable precedent for EB-5 business owners and shows the major elements that must be included in an EB-5 business plan. These include descriptions of the project’s nature, business structure, job creation plans, budget, and personnel.

Ensuring Job Creation

Perhaps the most important USCIS requirement is that every EB-5 investment must generate at least 10 full-time jobs for U.S. workers. In light of this rule, EB-5 investors tend to favor projects with strong potential for job creation. Project developers should, in fact, aim to create more than 10 jobs per investor and thus offer a safer investment opportunity.

Moreover, the projected EB-5 capital raise will depend on the project’s capacity for job creation. The minimum EB-5 investment thresholds are $500,000 for targeted employment area (TEA) projects and $1,000,000 for non-TEA projects. For example, suppose that an EB-5 project’s job creation capacity can accommodate a maximum of 10 EB-5 investors. If the project is located in a TEA, it can therefore aim to receive $5,000,000 in EB-5 investment capital.

Projects that are carefully structured to follow USCIS requirements and have adequate potential for creating jobs will likely succeed in the EB-5 industry. Since keeping track of the many EB-5 regulations for project developers can be difficult, consulting firms such as EB5AN offer invaluable guidance on how to raise EB-5 investment funding.

As of November 2021, it has been more than four months since Congress allowed the EB-5 Regional Center Program to expire on June 30, 2021. The EB-5 investment industry was thus left without its most popular and practical investment model. Since then, there has been much speculation among EB-5 industry members about how regional center investment might be reauthorized; many hope that EB-5 reform, including renewal for the regional center program, will be attached to a legislative vehicle in Congress. However, due to the unpredictable nature of such legislation, EB-5 investors and project developers can only speculate as to when Congress will act.

Before the June 30 suspension, the vast majority of EB-5 investments were made through regional center-sponsored projects. In fact, an August 2021 study found that 93.4% of all EB-5 visa petitions had been filed by regional center investors. Regional centers, which are designated by United States Citizenship and Immigration Services (USCIS), manage EB-5 funds and act as service agents for the EB-5 industry.

Due to the central role of the regional center program, EB-5 investors and project developers are eager to see it reauthorized. The return of regional center investment will benefit both the EB-5 industry and the U.S. economy at large.

Benefits for the EB-5 Industry

The regional center EB5 investment model benefitted investors in many ways; for instance, the job creation requirements for regional center-sponsored projects were quite flexible. In addition to counting direct employment (jobs that appear on the project’s payroll), regional center investors could also calculate indirect and induced employment. Indirect and induced jobs are created by a regional center project’s positive economic impact. These criteria made it much easier for regional center investors to generate at least 10 full-time jobs and thus qualify for their EB-5 visas.

In addition, regional center investors were typically given very light managerial duties. Most regional center projects subscribed their investors as limited partners, allowing them to vote on important business decisions but not requiring their participation in day-to-day management. This managerial structure was convenient for investors and undoubtedly contributed to the popularity of regional center projects.

In contrast, now that regional centers cannot operate, all EB-5 investments must be direct. Direct EB-5 projects can count only direct full-time jobs and typically require their investors to have a more active role in business management. Many more foreign nationals will surely make EB-5 investments once the regional center program is revalidated.

Reauthorization is also urgent due to USCIS’s visa processing policies: after the June 30 suspension, the agency announced that it would halt the processing of all existing I-526 petitions associated with regional centers. This decision leaves thousands of regional center investors in limbo. If these investors lose confidence that the regional center program will be reauthorized, they could try to get their EB-5 investment funds back, thus putting regional center projects in an uncomfortable position. However, these issues can be solved if Congress acts quickly to pass legislation that revalidates the regional center program.

Benefits for the U.S. Economy

The EB-5 investment industry has created tens of thousands of jobs for U.S. workers and poured billions of dollars into U.S. businesses—all at no cost to taxpayers. Moreover, the EB-5 program encourages investors to choose projects located in targeted employment areas (TEAs), which need economic development. The valuable source of EB-5 investment capital provided by the regional center program has undoubtedly bolstered the nationwide economy.

The regional center component of the EB-5 program has provided investors, project developers, and the U.S. economy with innumerable benefits. It remains unclear when Congress will pass the legislation needed to reauthorize regional center EB-5 investment, but doing so will aid not only the EB-5 industry but the United States as a whole.

The Visa Bulletin for December 2021 contains important news for the EB-5 investment industry: as of December 2021, all direct EB-5 investors with approved I-526 petitions will be able to apply for and receive their conditional residence visas. This development is particularly significant for Chinese EB-5 investors, who had been subject to a final action date and a date for filing since 2015.

However, regional center investors with pending I-526 petitions are unable to benefit from the Department of State’s (DOS’s) removal of the cutoff dates. Since the EB-5 Regional Center Program has been suspended, United States Citizenship and Immigration Services (USCIS) is no longer processing I-526 petitions associated with regional centers.

Chart A, “Final Action Dates for Employment-Based Preference Cases”

Chart A of each Visa Bulletin indicates the final action dates for backlogged countries, which dictate when investors can receive their EB-5 visas. As of December 2021, direct investors from every country, including China, have achieved “C” (current) status. They are no longer subject to a final action date and can receive their EB-5 visas as soon as these are available. (Investors should note that the DOS may reestablish a final action date for China if the demand from that country threatens to exceed the overall number of available EB-5 visas.)

The regional center values in Chart A are marked as “U” (unauthorized) due to the expiration of the regional center program. Still, the Visa Bulletin states that Chinese regional center investors will be subject to a November 22, 2015, final action date if the program is revalidated.

Chart B, “Dates for Filing of Employment-Based Visa Applications”

Chart B contains the dates for filing, which determine when EB-5 investors from backlogged countries can apply for their visas. As of December 2021, direct investors from all countries are no longer subject to a date for filing, so they can apply for their visas upon receiving approval for their I-526 petitions. The date for filing for Chinese regional center investors, however, remains at December 15, 2015; it has not advanced in more than a year.

The Importance of Reauthorizing the Regional Center Program

The suspension of regional center EB5 investment has prevented numerous visa applicants from moving forward with the EB-5 process. Moreover, the EB-5 investment program was allotted a record number of 19,880 visas for the 2022 fiscal year. Once the regional center program is reauthorized, USCIS and the DOS will be able to take advantage of the large number of available visas and reduce the EB-5 backlog substantially.

An Ideal Time to Make a Direct EB-5 Investment

Foreign nationals now have a valuable, and likely temporary, opportunity to invest in direct EB-5 projects at only $500,000 and without being subject to a cutoff date. Potential investors should act quickly to identify a suitable direct EB-5 investment project and begin the EB-5 process.

Many U.S. business owners and foreign nationals have been drawn to the EB-5 investment industry. The EB-5 Immigrant Investor Program offers businesses in the United States a convenient source of funding that is often available at below-market rates. Moreover, foreign nationals can qualify for permanent U.S. residency in exchange for making an EB-5 investment in a qualifying business.

The EB-5 industry’s popularity was boosted on June 22, 2021, when a court ruling lowered the minimum investment threshold from $900,000 to $500,000. However, only EB-5 projects that are located in targeted employment areas (TEAs) can receive investments of $500,000.

Consequently, the vast majority of EB-5 investors prefer TEA projects. (Non-TEA projects can receive minimum investments of $1,000,000). Since every EB-5 investment must create at least 10 full-time jobs for U.S. workers, TEA projects benefit communities in need of economic development and funding.

Types of TEAs

TEAs can either be rural or high unemployment. To qualify as a rural TEA, an area cannot be located inside of a metropolitan statistical area (MSA) delineated by the Office of Management and Budget. In addition, rural TEAs cannot be on the borders of a city or town with a population greater than 20,000.

On the other hand, high-unemployment TEAs must have an unemployment rate that is, at a minimum, 150% greater than the U.S. national average. Moreover, a high-unemployment TEA will only qualify as such if it is located within an MSA or in a city or town with a population greater than 20,000.

How to Obtain TEA Designation

Many EB-5 project developers seek TEA designation. State agencies are in charge of granting TEA status; these entities must receive copious demographic evidence showing that an area is indeed a rural or high-unemployment TEA.

Proving rural TEA status is relatively straightforward; state agencies only need information on the area’s location and population. In contrast, obtaining high-unemployment TEA status requires doing further research. Many investors choose to use unemployment data from the American Community Survey (ACS), the Bureau of Labor Statistics (BLS), or a combination of both sources. Since the BLS updates its data more frequently, investors may choose to use that source. In any case, the unemployment statistics should be as up to date as possible.

Obtaining TEA designation can make the EB-5 process far more practical for both investors and project developers. Moreover, TEA projects provide economic stimulus to areas that need it the most, thus contributing to the EB5 investment program’s goals of reducing unemployment and strengthening U.S. businesses.

The EB-5 investment industry underwent a significant change on June 30, 2021: the EB-5 Regional Center Program expired. Regional center investment had been the EB-5 program’s most popular investment type; the vast majority of EB-5 investors used to choose regional center-sponsored projects. As of November 9, 2021, the regional center program is yet to be revalidated.

Only a few days before the regional center program was suspended, a court ruling overturned the EB-5 Modernization Rule and thus lowered the EB-5 investment threshold to only $500,000. This decision has made the EB-5 program accessible to more foreign nationals around the world.

Direct EB-5 investment, the program’s other investment type, is now the sole option for investors and project developers. Many foreign nationals have chosen to make direct investments of $500,000 during the second half of 2021. Since direct investment is an integral component of the EB-5 program and does not rely on government renewal, many foreign nationals now prefer this investment model. Direct investment is ideal for businesses with smaller offerings, and direct EB-5 investors are often involved in day-to-day business management.

However, many investors still prefer regional center projects.

Recent developments indicate that regional center investment may be nearing reauthorization. If the regional center program is indeed revalidated, the EB-5 industry will benefit greatly.

How Reauthorization Could Take Place

Many EB-5 industry stakeholders agree that Congress will only reauthorize the regional center program if a bill to that effect is included in a larger legislative vehicle. It seems that Congress may have to pass such a legislative vehicle soon to avoid a shutdown of the U.S. government due to lack of funds. Some analysts believe that Congress will pass an omnibus bill, which could well include new regulations for the EB-5 program, such as the reauthorization of its regional center component.

Of course, the EB-5 industry can only speculate about how Congress will avert the possible government shutdown, and there is no guarantee that their legislation will reauthorize regional center investment. If, however, Congress does choose to address the EB-5 program, it may also make unwelcome changes such as raising the minimum investment amounts.

Why Reauthorization is Urgent

Many EB-5 investors and project developers have been inconvenienced by the lapse in the regional center program. United States Citizenship and Immigration Services (USCIS) announced that it would cease to process pending I-526 petitions associated with regional centers and that it would no longer accept such petitions from regional center investors. This policy could cause investors to lose confidence in the EB-5 program and try to get their capital back, which would put project developers in a difficult position. Moreover, many of the visas allotted for the EB5 investment program could go unused.

Even though the EB-5 industry has been hindered by the expiration of the regional center program, the EB-5 program as a whole still retains its popularity. Even more investors and project developers are expected to join the EB-5 industry once regional center investment can resume.

The United States’ international travel ban, which had been in force since early 2020, was lifted on November 8, 2021. Now, travelers from 33 formerly banned countries can once again enter the United States.

Due to the ongoing pandemic, the U.S. government has instated several new rules designed to minimize the spread of COVID-19. The foremost of these is the requirement for all noncitizens to be fully vaccinated before entering the United States. U.S. citizens will not need to be vaccinated, and exceptions will also be made for noncitizens who are unable to get vaccinated due to health reasons. Regardless of their vaccination status, all travelers entering the United States must present a negative COVID test.

What This Means for the EB-5 Program

The COVID-19 pandemic has had a profound impact on EB-5 investors and project developers. Due to the widespread travel bans and lockdowns, many EB-5 projects found themselves in financial trouble. Moreover, United States Citizenship and Immigration Services (USCIS) nearly laid off about 70% of its employees due to reduced income during 2020.

The gradual economic recovery from the pandemic is undoubtedly beneficial to the EB-5 industry. Now, many more foreign nationals who are considering the EB5 investment program can come to the United States and visit open EB-5 projects. The return of international travel will also make it easier for potential EB-5 investors to meet project developers in person and learn about their offerings. Countries with high historic numbers of EB-5 investors, such as Vietnam and Brazil, had been banned from nonessential travel to the United States.

2021 has been a significant year for the EB-5 investment industry; EB-5 stakeholders have experienced many policy changes and new developments in recent months. June 2021 was a particularly eventful month that saw the repeal of the EB-5 Modernization Rule and the expiration of the regional center program.

The repeal of the Modernization Rule was welcome news for EB-5 investment stakeholders because it lowered the minimum investment threshold. Now, EB-5 investments of only $500,000 can be made in targeted employment area (TEA) projects. In addition, the temporary suspension of the regional center program has shifted investors’ focus toward direct EB-5 investment, which does not depend on periodic reauthorization. Interested foreign nationals should act quickly to make a direct EB-5 investment and begin the EB-5 process.