Immigrant Investor Program, EB-5, was created by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors. Under a pilot immigration program first enacted in 1992 and regularly reauthorized since, certain EB-5 visas also are set aside for investors in Regional Centers designated by USCIS based on proposals for promoting economic growth. On March 15, 2022, the United States enacted the EB-5 Reform and Integrity Act of 2022 (the 2022 Act) as part of a large omnibus budget package of legislation. It provides a 5-year reauthorization of the Regional Center Program with substantial changes, marking an achievement long-awaited by the Regional Center industry. All EB-5 investors must invest in a new commercial enterprise (any enterprise established after Nov. 29, 1990 or a new business). Commercial enterprise means any for-profit activity formed for the ongoing conduct of lawful business including, but not limited to:
Infrastructure Projects
For regional center-based petitions, investors may qualify for the reduced investment amount by investing in an infrastructure project. These projects are ones:
- That are administered by a governmental entity (such as a federal, state, or local agency or authority);
- Where the governmental entity, which serves as the job-creating entity, contracts with a regional center or new commercial enterprise to receive capital investment under the regional center program from investors or the new commercial enterprise; and
- That involve financing for maintaining, improving, or constructing a public works project.
USCIS determines whether a project meets the definition of infrastructure project during adjudication of the Application for Approval of an Investment in a Commercial Enterprise. A standalone investor cannot establish eligibility through an infrastructure project.
LEGAL UPDATE: On March 15, 2022, the United States enacted the EB-5 Reform and Integrity Act of 2022 (the 2022 Act) as part of a large omnibus budget package of legislation. It provides a 5-year reauthorization of the Regional Center Program with substantial changes, marking an achievement long-awaited by the Regional Center industry. The 2022 Act has major implications for existing and future investors, regional centers, developers, and promoters.