Key Changes in the EB–5 Reform and Integrity Act of 2022
Section 2: EB-5 Visa Reforms
- The new EB-5 changes include minimum investment amounts, visa set-asides, TEA designations.
- TEA designations will be determined by DHS
- TEA designations can be relied upon for 2 years
- The investment amount for TEA is $800,000, and for non-TEA investment, the amount is $1,050,000
- Investments made in rural areas will be reserved for 20% of EB-5 visas>
- TEA infrastructure projects will qualify as TEA
Section 3: EB-5 Visa Reforms
This section will now include regional center record keeping and audits, business plans (exemplar filings), reauthorisation terms, direct and third-party promoters, compliance with securities laws, integrity fund, and fund administration.
Some new changes include:
- Rural investments will now receive priority processing
- The NCE can redeploy funds anywhere in the United States
- The Regional Center Program will be authorised until September 2027
- Investors will get annual statements from the Regional Center
- Construction jobs that last for less than 2 years will be counted as the percentage they made during those years
- Before accepting investors, DHS will require business plans, and investors can refer to them while filing their I-526 petition
- It should include a believable business plan, documents filed with SEC and state securities regulators, the offering package, economic analysis and marketing materials
- Additionally, conflicts of interest, material risks, in-depth details of compensation to be paid with the description of services, and contact information
- Should also include the procedures and policies of the Regional Centres, internal investigations to follow the security federal and state laws
- A fee of $1,000 needs to be paid for each I-526 petition
- Reg S is not included in the U.S. jurisdiction
- If there are less than 20 investors in preceding years, the regional investors will have to pay an annual fee of $10,000; if not, then $20,000
- 3rd-party promoters should register with USCIS. Their contact information should be included; however, that can be made public. Investors must acknowledge everything before signing the disclosure form
- If more than one investor makes direct investments, they should enlist for a regional center
- Unless and until the NCE is controlled by a broker-dealer or investment advisor or the NCE commissions an annual audit, all offerings should have a fund administrator
What Does This Mean for People Who Have Already or Were Thinking of Submitting Their Application?
How Has Nysa Global Helped Its Clients During This Period?
In 2018, in the expedited EB-5, where the average I-526 approval took 6 months for us, the investor’s further work was pending. Now that the program has reopened, it will process for the next stage.
We are also happy to say that we managed to file direct EB-5 investments in the $500,000 limit for our investors from India – all this during the suspension period of the Regional Center Program, and while the minimum investment amount was reduced back to $500,000.
Therefore, the investors are benefitting since they have managed to file the EB-5 at substantially less than others!
We authorise for 5 years starting at $800,000 minimum investment for TEA rural and $1 million for the non-TEA. Investors who filed and were approved previously and are waiting for their visa allocations suspended during the shutdown period of the Regional Center, the good news for you is that you will now move to the next step!
No worries for those who missed the chance. With the Regional Center Program reauthorised, Nysa Global offers both types of EB-5 visa – Regional Center and Direct Investment at their respective costs with the best projects to choose from.
Get in touch with us to know more!