​What is EB-5?

The fifth employment-based preference (EB-5) immigrant category was created by congress in 1990 to stimulate the U.S economy through job creation and capital investment by qualified foreign investors who wish to immigrate to the United States with permanent residency upon fulfillment of program requirements. 

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In 1992, Congress enhanced the economic impact of the EB-5 program by permitting the designation of Regional Centers to pool EB-5 capital from multiple foreign investors for investment in USCIS-approved economic development projects within a defined geographic region. Today, 95 percent of all EB-5 projects are sponsored by Regional Centers.​​​​

 

In March 15, 2022, the EB-5 Reform and Integrity Act of 2022 (RIA) was signed into law, authorizing it through September 30, 2027, in which RIA provide for:

• Increased investment amounts to $800,000 for Targeted Employment Areas (TEA, rural or high unemployment-regions), and $1,050,000 for non-TEA.

• Certain visa set asides for rural, high unemployment census tract, and infrastructure project

• Heightened compliance standards of regional centers, new & job creating enterprises

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What is the typical EB-5 Visa processing timeline?

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What are the EB-5 investment requirements?

Capital requirements:

• If in Targeted Economic Area (TEA, a rural or high unemployment-region), $800,000

• Outside TEA, $1,050,000

• Maintain capital at risk requirement

• Source of funds information is a requirement for applications

• The applicant may include all immediate family members in their petition

Job Requirements:

• Every investment, must generate at least 10 full time jobs

• Economic regional input-output expenditure model system is employed to determine the jobs created and the impact of a project on the surrounding local economy

• In many instances, W-2’s of workers in the operating jobs are counted

Time Requirements:

• The overall investment process is at least 5 years

• The project construction periods are typically over two years

• If capital has not been invested or there are fewer than anticipated jobs created, the investors will not qualify for a permanent residence status

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What is the source of fund criteria?

​The USCIS requires that investors prove that (1) the source of the invested capital is “lawful,”and (2) the investor has a “level of income” or has accumulated sufficient wealth that would enable the investor to invest. An investor's “self-serving” declarations are not enough to satisfy USCIS requirements for proof of either lawful source of funds or sufficient funds to invest. All claims to the source of funds must be properly and thoroughly supported with documentation and other evidence of how the money was earned.

 

In addition to proof of the lawful source of the investor's funds, the USCIS insists on documentation that links the invested funds to the investor. It is best to be able to provide every document necessary to trace the invested funds from their source overseas to the investment in the U.S. The following documents may be used to meet this requirement:

• Wire transfer receipts;

• Deposit receipts;

• Bank statements showing withdrawal of funds from one account and deposit offunds into another account;

• Letter from bank confirming funds transfer

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How has the EB-5 program contributed to the economy?

From 2016 - 2019, the EB-5 program spurred:

• $17.5 billion in EB-5 investment

• $75.2 billion in total economic investment (including matching funds)

• 1.7 million jobs created

• $122 billion in wages paid to U.S. workers

• $184 billion in contribution to U.S. GDP

• 45 jobs created per EB-5 investor, on average

• 3.3x return on every EB-5 dollar invested

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What role does a regional center play in an EB-5 project?

A Regional Center is a public or private enterprise (e.g. any economic entity or regional governmental agency) with a target investment program in a defined geographic region.

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The main benefit of having a Regional Center associated with a project is to be able to benefit from a more expansive concept of job creation, which includes both “indirect” and “direct” jobs as defined below:

• Direct jobs are actual identifiable jobs for qualified employees located within the commercial enterprise into which the EB-5 investor has directly invested his or her capital.

• Indirect jobs are those shown to have been created collaterally or as a result of capital invested in a commercial enterprise affiliated with a regional center by an EB-5 investor

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What are the key terms under the 2022 EB-5 integrity and reform act?

EB-5 Reform and Integrity Act of 2022 reauthorized the EB-5 Regional Center Program through September 30, 2027, and made significant updates to visa allocation. Of the annual 10,000 EB-5 visas, the Act now reserves 20% for rural investments, 10% for high-unemployment targeted employment areas (TEAs), and 2% for infrastructure projects. Unused visas within these set-asides roll over within their categories and, after two years, into the general EB-5 pool, aiming to reduce backlogs and encourage investment in underserved areas.

 

A major benefit for investors under the Act is the ability to file for adjustment of status (AOS) concurrently with their EB-5 immigrant petition (I-526) if a visa is immediately available. This means eligible applicants already in the U.S. can apply for a green card without waiting abroad, and also apply for work and travel authorization during processing. Additionally, the law provides limited relief under INA §245(k) for certain minor immigration status violations, expanding flexibility for maintaining eligibility.

 

The Act also safeguards investors’ immigration progress by allowing them to retain their priority date if a regional center or project is terminated, provided they reinvest within 180 days in a compliant project. It further protects dependent children from aging out, preserving their eligibility even if they turn 21 during the process. These changes modernize the EB-5 visa process, offering investors more certainty and streamlined paths to permanent residency.

 

Who benefit the most from the adjustment of status (AOS) provisions under the 2022 EB-5 Reform and Integrity Act?

F-1 (student), H-1B (work), L-1 (intra-company transferee), E-2 (treaty investor), or other long-term visa holders.

 

Because the Act allows concurrent filing of the I-526 immigrant petition and I-485 adjustment of status, these investors no longer have to wait for I-526 approval before applying to adjust to permanent residency. They can file both simultaneously (if a visa is available in their category) and also apply for employment authorization (EAD) and advance parole (travel permit), which gives them work and travel flexibility while waiting.

 

The biggest winners are investors from China, India, and Vietnam who are already in the U.S. on long-term visas. They can start their green card process sooner, secure EAD/AP, and protect against aging-out children without being forced to return home to wait.