2 years ago, Congress united to create the EB-5 Reform and Integrity Act (RIA) of 2022, enhancing the nation’s ability to attract foreign investment. Since its passage, the act has significantly increased petition volume, especially from Chinese and Indian investors. This bipartisan breakthrough has increased the flow of capital to projects producing jobs and improving communities in high-unemployment areas and rural locations.
- Oliver Yang, an immigration lawyer and Co-Chair of Reid & Wise LLC’s immigration department
The RIA framework will remain in use until 2027 when Congress will have the ability to reauthorize it. Experts like F. Oliver Yang, an immigration lawyer and Co-Chair of Reid & Wise LLC’s immigration department, advocate for RIA extension. In just two years, the bill has already proven its effectiveness many times over. EB-5 is now one of the fastest options for applicants to receive permanent residence for themselves, their spouse, and their children. However, it’s still important for experts to stay informed about how this immigration pathway can be further improved.
The EB-5 Immigrant Investor Program is an American visa scheme with unique advantages for foreign nationals interested in gaining permanent residency. The program offers high-net-worth investors an accelerated path to permanent residency without the need for a sponsor.
Since its establishment in 1990, EB-5 has stimulated immense economic growth in the American economy, encouraging wealthy individuals to fund commercial enterprises across a variety of sectors. During economic hardships like the 2008 financial crisis, foreign investors helped the nation bounce back from its losses and regain global competitiveness.
The EB-5 program has undergone several changes to minimize risk and ensure compliance. Many of these improvements have served the American economy well, enabling the government to increase the minimum investment to $800,000 and require the creation or preservation of at least 10 domestic jobs per investor. Whether instated in rural or high-unemployment areas, or through an infrastructure project, these investments have tangible impacts.
Data following the passage of RIA shows a strong uptick in petition filing and investment, specifically from Chinese and Indian investors. Chinese investors account for over 50% of I-526E petitions from October 2021 to July 2024. Case filings increased by 215% in 2023, finally matching pre-pandemic investment levels. In the last few years, there have been 6,500 individual EB-5 applications, which have injected an estimated $5 billion into the US economy as a result.
Many foreign nationals are hopeful about the EB-5 program after recent reforms. Compared to other employment-based visa categories, EB-5 is an attractive option for a broader variety of individuals. Oliver Yang, who has supported thousands of clients through investment-based and employment-based immigration, calls the program one of the only realistic pathways to permanent residency for many individuals who would have a hard time qualifying for other green card options.
“Since RIA was passed, EB-5 has become one of the few visa programs that foreign nationals have an easier time qualifying for. Compared to other employment-based visas, EB-5 has less of a backlog and higher approval rates, now allowing investors to stay in the US while their green card is processed. This is a major improvement for those already residing in the country on other short-term visas, such as F-1 and H-1B, looking to gain the benefits of permanent residency for themselves, their spouse, and their children,” Oliver says.
Oliver predicts the upward trend post-RIA will continue unaffected until business immigration returns to the ballot. The last bipartisan attempt at major immigration reform happened in 2013, and it was ultimately a failure due to rejection from the House of Representatives. This is why RIA is a landmark legislation in the nation’s history. If the principles of this legislation remain unchanged for the foreseeable future, foreign investors will have an outsized impact on economic and social development in countless cities.
At the moment, foreign investment is booming in rural areas that have been commonly overlooked in preference of metropolitan hubs. Industries like real estate development, hospitality and tourism, and manufacturing remain the most popular options for investment, but the more immigrants capable of contributing there are, there will be more diversity in where capital is applied. Oliver adds to this point, arguing that several interrelated factors are influencing the EB-5 landscape.
“Concurrent filing, Regional Center program renewals, long wait times for other green card options, and layoffs in the tech industry are just a few things diversifying investor demographics and project development. Chinese and Indian nationals continue to lead investment contributions, but emerging markets from South America are becoming more prominent,” he says. These changes are reshaping the future EB-5 market gradually, creating trends that will be important for legal experts and immigration officers to take heed of when proposing new legislation.
Contrary to popular narratives, immigration is not always a controversial topic. Business immigration initiatives, such as the EB-5 program, are an excellent example of this. They incentivize foreign investment and attract world-class talent that advances American objectives. Oliver Yang and other professionals specializing in this work are advocating for more organizations, businesses, and individuals to recognize the historic impact of immigrants on the nation’s growth and advocate for sensible legislation comparable to RIA in the future.
