The EB-5 Reform and Integrity Act of 2022 (“RIA”) reauthorized and reformed the EB-5 Immigrant Investor Program, a U.S. immigration program that offers foreign nationals a pathway to U.S. permanent residency through investment in American businesses that create jobs. A significant component of this program is the EB-5 Immigrant Investor Regional Center Program, which allows investors to consolidate their resources through designated Regional Centers and invest in projects that drive economic growth and job creation.

The Regional Center Program was introduced by Congress in 1992 as a pilot program to enhance the EB-5 visa classification. It was classified as a pilot program – a short-term “test” program – to allow for more flexibility for job creation based on the minimum investment.  Investments may be made into businesses or “projects” sponsored by Regional Centers, which are approved by the United States Citizenship Immigration Services.  Typically, these Regional Centers manage or oversee investment projects in sectors like technology, infrastructure, and real estate in specific geographic locations. Indirect and induced job creation can be included toward the 10 full-time jobs per investment, instead of just direct employment.  The ability to count indirect and induced job creation is one of the main benefits of the Regional Center Program. Large-scale economic development projects around the U.S. have benefited from the Regional Center Program’s increased investor appeal due to this flexibility in showing job creation.

Unlike the original, permanent, direct part of the EB-5 Immigrant Investor Program (once generally referred to as “Direct” EB-5, but now renamed as “Standalone Investor” by the RIA), the Regional Center Program continues to operate under temporary authorizations that require periodic renewal by Congress. This structure has led to periods of uncertainty, particularly when legislative approvals are delayed. The most recent reauthorization occurred on March 15, 2022, when President Joe Biden signed the EB-5 Reform and Integrity Act into law, extending the Regional Center Program until September 2027. This five-year extension aimed to provide stability and predictability for investors and developers alike.

This is part of a series on the EB-5 Reform and Integrity Act of 2022.  To read more in this series, click here.