Industry Stakeholders Regional Centers and Investors Now Have a Secure Path Forward:
• On August 24, 2022, the U.S. Department of Homeland Security entered into a settlement agreement in litigation brought by multiple Regional Center plaintiffs EB-5 Trade Association Invest in the USA (IIUSA) in the U.S. District Court for the Northern District of California. Once approved by the Court, the terms of the settlement agreement will go into effect.
• Previously approved regional centers now have 100% certainty about their status, as earlier Regional Center Program resumption was only provisional.
• Regional centers must submit applications for Regional Center designation under the new regulations if they have not already done so by the end of 2022 to immediately sponsor new EB-5 projects and investors at the current investment minimums of US $800,000 or US $1.05 million depending on the specific project.
• Regional centers must comply with the EB-5 Reform and Integrity Act of 2022 and its increased compliance and reporting requirements, which provides increased security for investors.
• Investors may submit EB-5 Immigrant Investor Petitions and be assured of processing as well as their ability to concurrently Adjust Status (apply for a “Green Card”) if they are in the U.S. in a temporary employment-based or student status.
• Investors may be assured of “priority processing” in the case of rural projects which targets approvals in as little as 120 to 240 days.
Chris Costa
Senior Associate at Drummond Advisors
