The EB-5 Immigrant Investor Program offers projects investments in certain geographic regions that qualify for a reduced investment threshold due to its need for economic growth and development. Understanding rural and high unemployment areas are crucial for potential EB-5 investors because it directly affects the financial planning of potential investors and the amount of capital they need to invest for their EB-5 petition.

A rural area is any area outside a standard metropolitan statistical area or town with a population of 20,000 or less. A high unemployment area is an area that experiences at least 150% of the national average unemployment rate.

Investors who invest in either of these two areas qualifies for the reduced investment amount of $800,000. Non-TEA projects require an investment of $1,050,000.

USCIS is responsible for designating rural and high-unemployment areas, which makes the EB-5 program accessible to a wider pool of investors. Currently, petitions for investors who invest in rural areas are experiencing faster processing times.

The EB-5 visas on the visa bulletin are divided into four categories. USCIS has set aside a quota for the three set-asides, which were created as per the EB-5 Reform and Integrity Act of 2022, including the rural and high unemployment areas. The third set-aside relates to infrastructure projects, which are sponsored by governmental entities that seek to construct, improve, and maintain public works such as airports, railways, and roads.

USCIS has set aside a quota for the three EB-5 set-asides as follows:

Rural TEAs – 20%
High unemployment TEAs – 10%
Infrastructure projects – 2%

The EB-5 unreserved category includes pre- and post-RIA investors who do not fit into the three new set-aside categories. It does not have a specific quota.

If you have any questions regarding the EB-5 process, please email us at rpatel@patellegal.com and jtrevino@patellegal.com.