The EB-5 Immigrant Investor Program is famous among foreign nationals from all over the world as a direct route to a U.S. green card. However, it is also known for being a slow process that can take several years.

Having made a qualifying investment, an EB-5 investor must file Form I-526 with United States Citizenship and Immigration Services (USCIS). If the investor meets the criteria of the EB-5 investment program, USCIS will approve the I-526 petition, and the investor will be granted conditional U.S. residency for two years.

Then, EB-5 investors must request that the conditions on their residency status be removed through Form I-829. This petition allows USCIS to evaluate whether the EB-5 investment remained compliant with the program’s regulations and created the required number of jobs. If approved, the EB-5 investor and their family will qualify for permanent residency in the United States.

USCIS is notorious for its slow adjudication times for both I-526 and I-829 petitions, meaning that the process can take several years. EB-5 investors who have dependent children nearing the age limit for the EB-5 visa may want to complete the process before their children age out.

However, two changes that occurred to the program in 2021 may offset these delays and allow direct EB-5 investors to obtain their green cards faster.

Speeding up Processing Times for Form I-526

While backlogs of pending I-526 petitions have been a feature of the EB-5 program over the years, a significant change in June 2021 could lead to faster processing times. With the expiration of the regional center program, USCIS announced it would no longer process pending I-526 petitions from regional center investors.

As regional center projects were the most popular route for foreign nationals to make an EB-5 investment, this decision should free up a lot of USCIS resources, which could be refocused to processing petitions from direct EB-5 investors.

However, industry experts speculate that regional centers could be reauthorized as soon as the end of 2021, which could signal a return to slower processing times. Prospective investors looking to participate with a direct EB5 investment are recommended to use this opportunity before the situation changes.

Cutoff Dates Removed

In response to backlogs dating back to 2015, USCIS has implemented cutoff dates for Chinese applicants who have filed Form I-526. These cutoff dates cause delays for EB-5 investors, as they have to wait before applying for or obtaining their conditional green cards.

However, in the December 2021 Visa Bulletin it was announced that there would no longer be cutoff dates for direct EB-5 investors, regardless of their nationality. This means that all investors who make a direct EB-5 investment will be able to obtain their visas as soon as their petitions are approved. This is particularly good news for prospective EB-5 investors from China, as their applications have been subject to cutoff dates for six years.

However, if the regional center program is reauthorized, investors who choose that EB-5 investment route will be subject to cutoff dates as before.

Direct EB-5 projects and investors can benefit greatly from the expiration of the regional center program as well as the removal of cutoff dates. This combination of events, as well as the lowering of the minimum EB-5 investment amount to $500,000, makes it a very advantageous time for foreign nationals to make a direct investment. Interested foreign nationals are advised to act quickly to enjoy shorter processing times and a faster route to their U.S. green cards.

EB-5 investors, immigration attorneys, and other professionals involved in the EB-5 investment industry all agree that the job creation criteria set out by United States Citizenship and Immigration Services (USCIS) is key to determining a foreign national’s eligibility for an EB-5 visa. One of the main reasons Congress created the EB-5 Immigrant Investor Program in 1990 was to reduce unemployment in the United States; besides meeting the minimum investment threshold, EB-5 investors must also create at least 10 full-time jobs for U.S. workers.

USCIS carefully evaluates Form I-829, Petition by Investor to Remove Conditions on Permanent Resident Status, to determine whether an EB-5 investment has complied with its regulations, including the job creation requirement. EB-5 investors who file Form I-829 must include evidence such as an econometric analysis of the EB-5 project’s activities and the new commercial enterprise’s (NCE’s) payroll records.

To increase their chances of receiving approval for Form I-829, EB-5 investors must choose their projects carefully. The most reliable projects from an immigration perspective aim to create more than 10 jobs per EB-5 investor, thus accounting for any unforeseen obstacles or capital shortfalls.

It is crucial for EB-5 investors to understand the rules governing job creation, including specifics regarding employee eligibility and the differences between direct, induced, and indirect employment.

Employee Eligibility

The USCIS Policy Manual says the following about what kinds of workers count toward fulfilling the EB-5 job creation requirement:

“For the purpose of the job creation requirement, the employee must be a qualifying employee. A qualifying employee is a U.S. citizen, a lawfully admitted permanent resident, or other immigrant lawfully authorized for employment in the United States including, but not limited to, a conditional resident, a temporary resident, an asylee, a refugee, or a noncitizen remaining in the United States under suspension of deportation.”

In light of these guidelines, an EB-5 project’s employees that appear on the NCE’s payroll must be legally authorized to work in the United States. EB-5 project developers can hire employees who are U.S. permanent residents, citizens, legal asylees, and refugees. However, workers holding L, M, or O visas will not count toward fulfilling the job creation requirement. Moreover, an EB-5 investor and their family members cannot count as EB-5 employees.

Direct, Induced, and Indirect Employment

Direct employment is made up of workers who appear on the NCE’s payroll. These employees are hired and paid by the EB-5 project. In addition, direct positions must last for a minimum of two years and be full time; USCIS allows several different employees to fill an EB-5 job position during the two-year period, and job-sharing agreements can be used. Direct EB-5 projects can count only this type of employment.

In contrast, indirect and induced employment is not comprised of workers who are hired by the NCE. Rather, indirect and induced jobs are created by the EB-5 project’s positive economic impact on the community. For instance, an EB5 investment project will likely use local companies to obtain goods and services, and the project’s employees will spend their wages in the locality. Regional center-sponsored projects can count direct, indirect, and induced jobs.

Foreign nationals interested in making an EB-5 investment and pursuing permanent resident status should retain an experienced immigration attorney, who can help them find the safest EB-5 projects with adequate job creation criteria.

The expiration of the EB-5 Regional Center Program has lasted longer than many industry members expected. As of December 4, 2021, regional center EB-5 investment has been suspended for more than five months.

This extended lapse in the program has inconvenienced regional center investors; United States Citizenship and Immigration Services (USCIS) is no longer processing I-526 petitions associated with regional centers. As a result, regional center investors may have to wait for several months for their I-526 petitions to be adjudicated, and they could eventually try to get their invested capital back.

Unfortunately, it has become clear that the regional center program will not be revalidated in 2021 because Congress failed to reach a consensus on the appropriations bill for the 2022 fiscal year. This spending bill could have included reform for the EB-5 program and reauthorized regional center EB-5 investment. To avoid a shutdown of the government, Congress instead passed a continuing resolution that will keep government agencies operating until February 18, 2022.

Once the February 2022 deadline arrives, the U.S. government will have two options: it can either use another temporary measure to keep the government running or finally pass the long-awaited appropriations bill. If the latter option is chosen, the appropriations bill could revalidate regional center investment—but this is only a possibility.

Regardless of whether Congress passes another continuing resolution or the appropriations bill, any modifications to the EB-5 program will need to be a part of a larger bill; the controversial nature of immigration legislation means that a standalone EB-5 reform bill is unlikely to succeed.

An Opportunity for Direct EB-5 Investment

While the future of the regional center program is shrouded in uncertainty, direct EB-5 investment has taken center stage in the EB-5 industry. Direct EB-5 investors could have their I-526 petitions processed faster than before since USCIS is no longer adjudicating such petitions from regional center investors. Moreover, direct EB-5 projects can accept investments at the reduced amount of $500,000, and this investment threshold could be raised by the time the regional center program is revalidated.

Foreign nationals and project developers interested in the EB5 investment program should also note that direct investment is an integral part of the EB-5 industry; it does not need to be revalidated by the U.S. government. Direct EB-5 investors will never find themselves in a situation similar to that of their regional center counterparts, whose I-526 petitions are currently in limbo. Interested foreign nationals can contact EB5AN, which offers personalized consulting services for EB-5 investors and business owners.

Thousands of foreign investors have gone through the EB-5 investment process successfully and obtained U.S. green cards for themselves and their families. The EB-5 process takes several years, and investors must work closely with their immigration attorneys throughout every step of the process, especially when filing their visa petitions with United States Citizenship and Immigration Services (USCIS). Form I-829, Petition by Investor to Remove Conditions on Permanent Resident Status, is the final visa petition in the EB-5 process. The purpose of Form I-829 is to prove that an EB-5 investment and the EB-5 project have remained in compliance with USCIS regulations.

EB-5 investors are granted U.S. green cards only if USCIS approves Form I-829, so it is crucial for investors to compile their I-829 petitions carefully with the guidance of their immigration attorneys. In essence, investors filing Form I-829 must prove that an EB5 investment has been made and that the EB-5 project met the employment creation requirement.

Proving That an EB-5 Investment Was Made

Form I-829 is filed within the final 90 days of an EB-5 investor’s two-year conditional residency period. To prove that an EB-5 investment was made in a new commercial enterprise (NCE), investors must first gather evidence that an NCE was established. The evidence may include the NCE’s tax returns, contracts, legal permits, and similar documents.

Next, investors must submit evidence that they invested in this NCE. These documents can include bank or financial statements. The minimum EB-5 investment amounts are, as of June 22, 2021, $500,000 for targeted employment area (TEA) projects and $1,000,000 for non-TEA projects. All EB-5 funds must remain at risk—that is, investors must be open to profits or losses.

Proving Job Creation

Reducing unemployment is one of the main objectives of the EB-5 program. Every EB5 investment must be used to create at least 10 jobs, so Form I-829 must include documentation such as the NCE’s payroll records and tax documents. Investors should keep in mind that direct and regional center-sponsored projects have different job calculation methods: direct EB-5 projects can count only jobs that appear on the NCE’s payroll, but regional center projects can also count indirect and induced employment, which results from the EB-5 project’s positive economic impact on the community.

Besides proving that the EB-5 funds were invested and that the employment criteria were met, Form I-829 must also contain personal information. If an applicant has a criminal history or is filing as a former spouse or as the spouse or child of an investor who has died, this must be noted in the I-829 petition.

Enjoying U.S. Permanent Resident Status

Once USCIS approves Form I-829, the applicant and their qualifying family members receive permanent resident status, which allows them to live and work anywhere in the United States without restrictions. Moreover, EB-5 investors who have held permanent resident status for at least five years can apply for U.S. citizenship.

USCIS has strict evidentiary standards for EB-5 visa petitions, including Form I-829, but investors can increase their chances of approval by working with immigration counsel and an EB-5 consulting firm. EB5AN offers personalized consulting services for EB-5 investors and helps them embark on the EB-5 investment process with confidence.

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.