EB-5 Reform Act Offers Paths for Investors After Regional Center Closure

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Key Takeaways

• USCIS provides a 180-day window for EB-5 investors to act after regional center termination to preserve immigration eligibility.
• The EB-5 Reform and Integrity Act of 2022 offers protections for good-faith investors, including reassociation or reinvestment options.
• Pre-RIA and post-RIA investors must meet specific requirements, with stricter rules applying to petitions filed after March 15, 2022.

The termination of a regional center can significantly impact EB-5 investors, particularly those with pending applications. Regional centers play a central role in the EB-5 Immigrant Investor Program by pooling investments into job-creating projects across the U.S. 🇺🇸. When one is terminated, investors may face uncertainty about their eligibility and the status of their immigration journey. Thankfully, recent legislative changes under the EB-5 Reform and Integrity Act (RIA) have introduced measures to assist good-faith investors in maintaining their eligibility under certain conditions.

Protections for Investors Under the EB-5 Reform and Integrity Act

EB-5 Reform Act Offers Paths for Investors After Regional Center Closure

The EB-5 Reform and Integrity Act of 2022 brought critical changes, aiming to safeguard investors when a regional center’s designation is terminated. Section 203(b)(5)(M) of the Immigration and Nationality Act (INA) provides mechanisms for preserving eligibility as long as the investor has acted in good faith. This includes protections for compliance with program rules even when the termination was beyond the investor’s control.

Notification and the 180-Day Response Window

When a regional center is terminated, the United States Citizenship and Immigration Services (USCIS) notifies impacted investors. The notification triggers a 180-day period during which investors must take concrete steps to preserve their eligibility. Quick action within this window is essential, as missed deadlines may jeopardize an investor’s petition and future U.S. immigration prospects.

Options Available to Affected Investors

Depending on the circumstances, affected investors have several pathways to maintain eligibility and continue pursuing their U.S. residency through the EB-5 program.

For Pre-RIA Investors

Investors whose I-526 petitions were filed before March 15, 2022 (prior to RIA’s enactment), often benefit from more favorable options. These individuals may complete the process with fewer disruptions if certain conditions are met.

Project Completion and Job Creation: If the commercial project has already been completed or is progressing according to the business plan, and sufficient jobs have been created as required, investors may be eligible without needing adjustments to their petition. Such cases typically depend on sustaining capital investment until the required job creation benchmarks are fulfilled.
Administrative Non-Compliance: When the regional center termination stems from administrative issues, such as failing to pay the EB-5 Integrity Fund fee, pre-RIA investors may still qualify on a case-by-case basis. This flexibility does not apply if the termination was tied to fraud or significant violations.

For Post-RIA Investors

For those who filed their I-526E petition after the RIA’s implementation on March 15, 2022, stricter requirements apply. Two primary options are available in these cases:

Reassociating With a New Regional Center: Post-RIA investors must find another USCIS-approved regional center willing to associate with their new commercial enterprise (NCE), within the 180-day response period. This ensures continued oversight and compliance.
Reinvestment: Alternatively, these investors may choose to make a qualifying new investment in another eligible NCE. However, this must also occur within the 180-day window, meeting the program’s strict rules for investment levels and project approvals.

Both options require careful selection of a new regional center or NCE. Investors should verify that the new entity has no history of regulatory issues or risks of non-compliance.

Investors With Conditional Permanent Residency

For EB-5 investors who have already obtained conditional permanent resident status, the regional center’s termination does not immediately affect their status. These individuals may continue progressing toward permanent residency by filing Form I-829 to remove conditions. Success depends on demonstrating compliance with EB-5 requirements, especially in terms of job creation.

Conditional residents are encouraged to stay alert to timelines and ensure they submit detailed supporting evidence when filing their I-829 petition. If the terminated regional center’s project fulfilled all necessary requirements, there may be minimal disruptions to their immigration process.

Restrictions and Special Considerations

While the RIA offers meaningful pathways to maintain eligibility, certain limitations and specific scenarios warrant careful attention.

No Voluntary Termination Option for Investors

Investors cannot request USCIS to terminate their associated regional center to access amendment or reassociation options. However, regional centers themselves may voluntarily withdraw their designation, subsequently leading to termination. Investors impacted in such situations remain bound by the 180-day rule for response and action.

Single Amendment Opportunity

Once an investor responds to termination-related notifications and amends their petition accordingly, further amendments are typically not allowed. USCIS enforces this one-time adjustment rule strictly, and any additional changes could lead to ineligibility.

Ineligibility for Knowing Participants

Not all investors qualify for the protections under INA 203(b)(5)(M). Specifically, those who knowingly participated in fraudulent activities or misconduct that contributed to their regional center’s termination are excluded from preserving their immigration benefits.

Policy Changes and Developments: 2024 Updates

Recent policy updates by USCIS mark growing enforcement efforts in the EB-5 program. In July 2024, USCIS revised policy guidance related to sanctions, including the suspension or debarment of regional centers due to compliance failures. These updates, reflected in Volume 6, Part G of the USCIS Policy Manual, strengthen oversight to protect investors and ensure integrity in the EB-5 program.

Integrity Fund Fee Enforcement

In 2024, USCIS heightened enforcement regarding the mandatory EB-5 Integrity Fund fees. Regional centers failing to pay these fees have faced terminations. This policy is not without controversy—one legal challenge in Montana resulted in a federal court ruling that deemed summary terminations without reasonable penalties “arbitrary.” While this ruling creates legal uncertainty, USCIS continues its adherence to these requirements.

Key Steps for Investors

Investors whose regional center is terminated are urged to take prompt and strategic action. Some practical steps include:

Seek Expert Legal Advice: Consulting an experienced EB-5 immigration attorney is critical. These professionals can assess the circumstances of the regional center’s termination and guide investors through appropriate next steps.
Review Investment Status: Investors should carefully evaluate their NCE investment and evidence of job creation to understand the viability of their eligibility.
Respond Within Deadlines: The 180-day rule is a strict requirement, and failure to act within this timeframe could result in denial of one’s pending I-526E petition.
Find a New Regional Center: Investors needing reassociation should conduct thorough research to ensure they align with reputable centers with a strong compliance history.
File Updated Petitions: When required, amendments to the I-526E petition should be completed promptly, reflecting changes in the NCE or project.

The EB-5 Landscape: Moving Forward

The EB-5 program remains dynamic, with ongoing developments that continue to affect investors and regional centers alike. Investors are advised to stay informed, particularly about USCIS’s periodic updates on compliance and enforcement. Partnerships with seasoned legal representatives also provide a safeguard against sudden disruptions.

In summary, good-faith investors impacted by a regional center’s termination have viable options under the protections introduced by the EB-5 Reform and Integrity Act. Taking timely action, whether through reassociation, reinvestment, or petition amendment, is paramount to meeting program requirements and securing U.S. residency. As discussed on VisaVerge.com, the RIA has significantly improved safeguards while promoting accountability among regional centers and investors. For official updates and resources relating to the EB-5 program, USCIS’s dedicated EB-5 Program webpage (USCIS EB-5) serves as an authoritative source.

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EB-5 Immigrant Investor Program → A U.S. visa program allowing foreign investors to obtain green cards by investing in job-creating projects.
Regional Center → Designated entities under the EB-5 program that pool investments for economic development and job creation in specific areas.
I-526 Petition → An immigration form filed by EB-5 investors to demonstrate their investment in a qualifying project and intent to immigrate.
Conditional Permanent Residency → A temporary two-year residency status granted to EB-5 investors, requiring compliance with job creation and other program requirements.
EB-5 Reform and Integrity Act (RIA) → A 2022 law introducing protections and stricter regulations for both investors and regional centers in the EB-5 program.

This Article in a Nutshell

EB-5 Investors: Navigating Regional Center Terminations

When EB-5 regional centers are terminated, investors face uncertainty. The EB-5 Reform and Integrity Act provides safeguards, including reassociation or reinvestment options within 180 days. Acting quickly, consulting legal experts, and choosing reputable regional centers are crucial. These protections help eligible investors maintain their U.S. immigration journey despite unexpected program disruptions.