The EB-5 Immigrant Investor Program has long been a popular pathway for foreign nationals seeking permanent residency in the United States through investment in a U.S. business venture.

The program, administered by United States Citizenship and Immigration Services (USCIS), was introduced by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign entrepreneurs. It enables non-U.S. citizens and their eligible dependent family members, i.e., the spouse and unmarried children under 21, to obtain lawful permanent residency in the United States, also known as the Green Card.

To be eligible for the EB-5 visa, applicants must invest a minimum amount in a new commercial enterprise and create at least 10 permanent full-time jobs for qualified U.S. workers. The standard EB-5 minimum capital investment is $1,050,000. However, for specific infrastructure projects and projects located in a targeted employment area (TEA), the minimum investment threshold is much lower at $800,000.

TEAs are areas designated by the U.S. government as regions requiring economic stimulation due to rural location or high unemployment rates. The EB-5 program aims to promote economic growth in these areas with investment capital and jobs, which is one of its main objectives.

In this article, we will explore the differences between the three investment options—rural TEA, high-unemployment TEA, and infrastructure projects. We will also understand how potential investors can accelerate their EB-5 process and the factors they must consider while selecting a TEA investment that best suits their immigration and financial goals.

Faster Immigration with Set-Aside Visas

Besides requiring lower capital, investments in rural areas, high-unemployment areas, and infrastructure projects also provide a faster immigration route to EB-5 applicants, as these investments are eligible for set-aside visas introduced under the EB-5 Reform and Integrity Act of 2022 (RIA).

Under the RIA, 32% of the total yearly quota of EB-5 visas are reserved as set-aside visas—20% for investments in rural areas, 10% for investments in high-unemployment regions, and 2% for investments in designated infrastructure projects.

This provision of the RIA offers an invaluable opportunity to applicants from high-demand countries, such as China and India, to avoid backlogs in the unreserved category. Investors from these countries often face years-long extended waiting times for their Green Cards as the demand far outnumbers the limited annual availability of EB-5 visas. With the new set-aside visa categories, they can potentially obtain a Green Card as soon as their EB-5 petition (Form I-526E) is approved.

As of now, there is no extra waiting time or backlog in the reserved categories. However, the supply of EB5 set-aside visas is limited, and these categories may also become oversubscribed. Investors considering an EB-5 investment must file their petitions without delay while the reserved visas are still available.

Each of these investments has unique risks and benefits for investors, as discussed below.

Rural Area Investments

To qualify as a rural area, an area must not have more than 20,000 residents, not border a city or town with a population of 20,000 or more, and not be located within a metropolitan statistical area according to the most recent 10-year census of the United States.

Investing in a rural TEA project has multiple advantages and is one of the best options for foreign investors to expedite their immigration journey.

Low Investment Amount

As mentioned earlier, rural TEA projects qualify for the reduced minimum investment amount of $800,000, which means considerable savings for investors at the outset.

Priority Processing

In addition, rural EB-5 investments are eligible for priority processing of Form I-526E by USCIS. Of all other EB-5 investment categories, rural TEA petitions are adjudicated first, ensuring the shortest processing time for rural EB-5 investors. Due to priority processing for rural projects, many EB-5 investors and their family members have been approved for U.S. Green Cards in a matter of months.

Maximum Reserved Visa Quota

Another key benefit of a rural TEA investment is that it qualifies for 20% of the annual EB-5 visa quota, the largest share among the three set-aside visa categories. As the demand for rural EB-5 projects has historically been lower than for high-unemployment TEA projects, the reserved quota under this category is expected to last the longest, reducing the chances of a backlog in this category.

Faster processing for rural EB-5 petitions is particularly advantageous for investors applying from outside the United States, as they often face longer waiting times than investors already in the United States. This is because investors in the United States on non-immigrant visas can benefit from the concurrent filing provision of the RIA.

While rural EB-5 investments are an excellent option for investors looking for fast visa processing, they also have some inherent risks, such as financial viability due to low population, unpredictability of construction costs, and difficulty in securing financing.

To increase their chances of immigrating successfully and getting their money back, EB-5 investors must research carefully and invest in profitable and fully financed projects executed by reputed developers.

High-Unemployment Area Investments

A high-unemployment TEA is an area that has an average unemployment rate of 150% above the national average at the time an investor files their EB-5 petition.

Historical Preference for High-Unemployment TEA Investments

Before the RIA introduced significant incentives for rural TEA investments, high-unemployment urban TEA projects dominated the EB-5 market. Typically, large real estate urban TEA projects developed by major companies were considered a safe option for EB-5 investors as they were often fully capitalized and had significant job creation.

Post-RIA, although there is an increase in the demand for rural TEA investments, urban TEA projects continue to remain popular among investors. Recent data from USCIS reveals that urban TEA projects are more than twice as popular as rural TEA projects.

Pros and Cons of Urban TEA Investments

Just like rural EB-5 investments, urban TEA investments are also eligible for reduced minimum capital criteria and set-aside visa quota.

However, as the set-aside visa allocation for high-unemployment TEA investments is only 10% of the total EB-5 visas, this category may soon become significantly oversubscribed and face long processing delays, especially for investors from China and India.

In comparison, rural TEA investments have a larger (20%) visa allocation, and with lower demand, the rural EB-5 visa category is not expected to face backlogs for a longer time. Because of this, for investors from high-demand countries, rural TEA investments could be a better option for faster immigration to the United States.

However, investors already in the United States on non-immigrant visas can opt for urban TEA projects as they will not practically be affected by the long waiting time in case of backlogging. Such investors can exercise the concurrent filing option to adjust their status.

Under the concurrent filing provision, investors are allowed to file their adjustment of status petition (Form I-485) along with their EB-5 petition, after which they can apply for work and travel permits. Within a few months, they can receive their work and travel authorization and enjoy Green Card benefits while their EB-5 petition is being processed.

Infrastructure Project Investments

The EB-5 infrastructure project investment is a new category created by the RIA in March 2022.

An infrastructure project is defined as one that is administered by a federal, state, or local government entity and involves the development of a public works project. This new category aims to support infrastructure development projects across the United States.

Investments in qualifying public infrastructure projects are eligible for the reduced investment amount criteria of $800,000 and have access to 2% of the annual EB-5 visa quota as reserved visa set-asides.

However, this category only applies to immigrant investors who file EB-5 petitions through regional centers.

Infrastructure project investments being a relatively new category, there is still some ambiguity about the eligibility criteria for projects. The demand for this category is low, with only a few projects qualifying under the infrastructure classification.

Contact EB5AN for More Information

Both rural and urban TEA projects offer an excellent opportunity for investors to fast-track their immigration journey at a lower investment cost. Even so, each investor has unique needs, and EB5AN can help you find the right project for your individual immigration and financial goals.

EB5AN has helped more than 2,300 families from 60 countries relocate to the United States as lawful permanent residents. Our expert team has more than a decade of experience and offers clients first-rate, low-risk EB-5 regional center projects with a 100% USCIS project approval rate.

For more information on TEA investments, please book a free call with our expert team today.