On Friday, 11 March 2022, the United States Congress officially announced the reform and reauthorisation of the EB-5 Regional Center programme until 30 September 2027. Following the relapse of the EB-5 Regional Centre Program in 2021, countless High Net Worth investors and their families were left in limbo for the approval of their Immigrant Petitions and Adjustment of Status filings, this game-changing announcement is the first long-term reauthorisation this programme has had since 2015.
Senators Grassley and Leahy have managed to finalise the new legislation known as the EB-5 Reform and Integrity Act of 2022. According to new regulation, indirect jobs will account for up to 90% of the job creation or up to 75% where construction of the project is less than two years. There will also be a change to visa allocations where 20% of the total will be reserved for individuals who invested in projects that are considered as rural and will be given priority processing, 10% in high unemployment areas and 2% for infrastructure projects.
This decision brings numerous changes to the holistic programme and includes the adjustment of the minimum investment amount, new compliance guidelines for Regional Centers, updates on the Targeted Employment Area (TEA) regulations and protection for future investors and new applications.
- A minimum investment amount of $800 000 in Targeted Employment Areas (TEA’s) or $1,050,000 for standard EB-5 investments
- Grandfathering clauses which ensure protection of your application filed before September 30, 2026. This allows you to continue with your application in the event of a lapse in the program.
- In terms of funding your application, gifts are still permitted, and are not restricted to family members.
- In the event of a Regional Centre or new commercial enterprise (NCE) shutting down, there are processes in place for switching projects efficiently.
- The new legislation will ensure a stricter and more transparent system.
These changes will come into effect immediately so that new investors can take advantage of the new legislation and start their application to gain their Green Cards. Pending Investor Immigrant Petitions will not be subject to the changes or higher investment amounts and adjudications of these petitions will resume as soon as the bill is signed by President Biden.
“The EB-5 Investor Programme has proven to be a catalyst in economic foreign investment reform into America, while providing an extraordinary pathway for business owners and wealthy families to truly become part of the American life. The reauthorisation will not only allow us to get on with processing and completing final approval steps, but it will also give new investors more benefits,” explains Stuart Ferguson, Director of 12 Star Capital.
With a lowered entry threshold, new transparent system and a range of other benefits, investing in the EB-5 Investor Program is an easy decision knowing that you and your family can effortlessly immigrate to the US without uncertainty. Let 12 Star Capital pave the way with an expert team and seamless process that will guide you through this journey.