EB-5 Reserved Categories

Understanding Reserved Categories of the EB-5 Program and How They Can Accelerate the Green Card Process in the U.S.

In March 2022, the U.S. Congress enacted the EB-5 Reform and Integrity Act (RIA), marking a significant shift in U.S. immigration policy. The legislation introduced three distinct categories of reserved EB-5 projects: rural, high-unemployment, and infrastructure projects.

By directing investments to these specific areas, known as Targeted Employment Areas (TEA), the RIA aims to stimulate economic growth in underserved regions while shortening the processing time for EB-5 investors to obtain their green card.

Here are the three set-asides: 

  1. Rural Areas

A project qualifies as rural if it is located in an area that meets two main conditions. First, the area must have a population of fewer than 20,000 residents; second, it must be outside of a Metropolitan Statistical Area (MSA) and not adjacent to a city or town with a population of over 20,000. This designation aims to channel investments into less densely populated areas, stimulating economic development and job creation in peripheral regions.

  • Reserved Visas: 20% of EB5 visas. 
  • What It Means
  • Investments in areas classified as rural.
  • These areas are prioritized to encourage economic growth in underdeveloped regions. 
  • Benefit: Reduced competition for visas due to lower demand in rural areas. 
  1. High Unemployment Areas (TEAs)

For a project to be classified as high-unemployment, it must be located in an area where the unemployment rate is at least 150% of the national average, based on data from the U.S. Census Bureau and the U.S. Bureau of Labor Statistics. This ensures that EB-5 investments are directed toward regions most in need of economic revitalization.

  • Reserved Visas: 10% of EB5 visas. 
  • What It Means
  • Investments in areas with unemployment rates at least 150% of the national average
  • Promotes job creation in economically distressed communities. 
  1. Infrastructure Projects

Infrastructure projects are defined by their management and purpose. To qualify, a project must be managed by a government entity and involve the financing, maintenance, improvement, or construction of public works projects. This category underscores the EB-5 program’s commitment to enhancing national infrastructure, ranging from transportation systems to utilities and beyond.

  • Reserved Visas: 2% of EB5 visas. 
  • What It Means
  • Investments in public infrastructure projects, such as transportation, utilities, or facilities that benefit the public. 
  • Typically involves partnerships with government entities. 

 

Why These Set-Asides Matter 

  • These reserved visas are separate from the general EB5 visa pool, which can help applicants avoid long wait times. 
  • If you qualify for a set-aside, you may have a faster path to receiving your visa, particularly if demand is high in the general category. 

 

Explore EB-5 TEA Projects

For investors seeking to participate in the EB-5 program through investments qualifying under the TEA designation, there are currently available TEA projects that meet the investment requirements of the EB-5 program.

These projects provide unique opportunities to invest in regions that benefit from economic development incentives, offering a pathway to U.S. permanent residency while making a positive economic impact.

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