In 1990, under the Immigration and Nationality Act (INA), the U.S. Congress created the fifth employment-based preference (EB5) immigrant visa category for qualified foreign investors seeking to invest in a business that benefits the U.S. economy by creating or preserving at least 10 full-time jobs. Thus, the EB5 Program was born.
Following the March 2022 enactment of the EB5 Reform and Integrity Act (RIA) which witnessed major updates, the EB5 Immigrant Investor Program has opened up more opportunities for rural investors who now have a viable route forward for speedy processing of the EB-5 petition over non-rural investors.
As a foreign investor interested in receiving a U.S. Green Card through real estate investment. The EB5 Visa Program may be perfect for you. There are tons of great benefits to the EB-5 visa program, and Houston EB5 makes the process of getting your EB5 Visa simple.
Here are 5 most important E-B5 updates;
· INVESTMENT AMOUNT (Diversify your investment)
EB5 Investment has proven to be a great portfolio diversification investment for an investor who intends to immigrate to the United States. Following the new policy and reforms, the EB5 minimum investment in eligible employment areas (rural or highly unemployed areas) is currently $ 800,000. Standard or non-TEA investments are $ 1,050,000.
· PRIORITY PROCESSING (Get approval within 12 months)
Priority processing under the new law only applies to rural EB-5 investments. Other EB-5 investments are processed within the normal time frames, approximately two years. New applicants who invest in rural designated projects would benefit from priority processing with 6-12 month according to the new reforms. In February 2023, the first I-956F approval for a rural EB-5 project under the new reform was issued by the USCIS under 9 months.
· ADJUSTMENT OF STATUS (Stay in the US)
This new perk allows investors to choose to remain in the U.S. and apply for a Green Card without having to travel and wait in their country of origin. This ability to adjust your visa status from within the U.S. is stirring interest from potential EB-5 investors with temporary residency currently residing in the U.S. on any non-immigrant visas. This is a huge benefit to families with children who would like to avoid disruption to their child’s academic schedules and social development.
· INVESTMENT PROJECT (Right project Right EB5 investment)
The most important aspect of the rural EB5 Investment is the investment project.
The Frederick is a $175,600,000 multi-use development consisting of 200 Hotel Units, 38 Condominium, 220 for-rent multi-family units, and 29,300 square feet of retail space developed by DC Partners, an award-winning real estate development company with a strong track record of developing over 5 successful EB5 projects.
The Frederick aims to utilize the last remaining parcel of land on Main Street to meet the burgeoning demand for hotel, residential, and retail space in Fredericksburg, Texas. The 22-acre parcel has been thoughtfully laid out to achieve an efficient, spacious, and great amenities landmark. Each component will have a distinct design to match the different architectural styles from several areas found in Fredericksburg.
PROJECT STRENGTHS
· Strong hotel brand with national flag
· Strong market fundamentals in Texas, Central Texas, and Fredericksburg
· Strong drive-in market from all Texas cities
· Recession and Pandemic Resistant
· Tapping into the need for conference and ballroom space
· Trends in resort, nature, and wellness travel
· Last remaining piece of empty land on Main Street in Fredericksburg
· Low financing, construction, and land costs, yet above average anticipated rents and condo sales rates
· Investor Protection (Guaranteed investment)
This is the most interesting part for us. Having to be on the investor's side, helps us answer the right FAQs about viability, fraud, and investor apathy. Here are the major investor protection in the new EB5 reforms
· New Reporting Requirement
· New Active Oversight Activities
· Severe Consequences for Non-Compliance
· Protections against Terminated or Debarred EB-5 Projects and Regional Centers
· Guaranteed Processing if the Regional Center Program Lapses
Concluding Thoughts
As a qualified lawyer and EB5 advisor for over a decade, while I encourage potential EB-5 investors to act fast or chose this program as the safest way to US residency through investment, they would still benefit from thorough due diligence on topics varying from risk evaluation, and profitable EB-5 Project. It is valuable to use trusted and established regional centers like Houston EB5 their resources to avoid unnecessary risks or mistakes in the process.
Because of the EB-5 Reform and Integrity Act of 2022, foreign nationals can make EB-5 investments with far greater confidence. Under the Act, the EB-5 industry will become more transparent and accountable. These reforms help protect investors against many of the most serious risks associated with EB-5 foreign investments.Join Houston EB5 on May 11 for Lagos EB5 Connect and get the opportunity to meet the team from Texas, learn about the EB5 advantage and meet the most talked about EB5 Rural Project “The Frederick”