EB-5 Rural Priority Processing: Choosing a Rural EB-5 Project for U.S. Residency by Investment

March 21, 2024 · EB-5 · 9 min read

Under the current law, rural EB-5 projects receive priority processing and a dedicated share of visas (a visa set-aside). With EB-5 rural priority processing, immigrant petitions from investors in these projects may be adjudicated faster.

Under the current law, rural EB-5 projects — projects that are neither located in nor adjacent to a metropolitan statistical area or a city with a population of 20,000 or more — receive priority processing and a dedicated share of visas (a visa set-aside). EB-5 petitions from investors in these projects may therefore be processed faster. Investors should, however, weigh a range of other factors that affect both the immigration outcome and the prospects for repayment of capital.

EB-5 residency by investment is an increasingly popular route to the United States. An investment of US$800,000 in an EB-5 project in a Targeted Employment Area (TEA) can qualify the investor, their spouse and unmarried children under 21 for a U.S. green card, with access to U.S. education, healthcare, and other benefits available to permanent residents.

After the EB-5 Reform and Integrity Act of 2022 (RIA) was signed into law in March 2022, its incentives for investment in rural EB-5 projects drew strong interest from investors seeking U.S. residency.

Advantages of rural EB-5 projects: priority processing and reserved visas

A rural area is defined as an area outside a metropolitan statistical area and not adjacent to any area with a population of 20,000 or more. Previously, TEA projects shared a set-aside of roughly 30% of visas that covered both rural areas and high-unemployment areas. To encourage investment, the EB-5 Reform and Integrity Act of 2022 now reserves 20% of the annual EB-5 visa allocation for rural projects and requires priority processing of petitions from investors in rural projects. These provisions apply to petitions filed on or after March 15, 2022.

At the time this article was published, recent cases showed that rural EB-5 petitions often received Form I-526E approval much faster, in around 8–11 months, while recently approved standard petitions had taken about 3 years on average.

Faster, but other factors still matter

Reserved visas and priority processing show that the U.S. government wants to encourage investment in rural EB-5 projects. Petitions for rural projects are therefore likely to be approved sooner, which may allow the investor’s family to obtain U.S. immigrant visas earlier, subject to visa availability. Priority processing, however, covers only the first stage of the U.S. residency process. To support a successful immigration outcome and the prospects for repayment of capital, investors need to weigh a number of other factors.

The EB-5 pathway to U.S. residency has 2 stages: Form I-526E and Form I-829. Form I-526E is the investor’s immigrant petition; once it is approved, the investor and eligible family members may obtain a 2-year conditional green card and move to the United States. Form I-829 is the petition to remove the conditions and obtain a permanent green card. Form I-829 requires evidence that the EB-5 investment has created at least 10 full-time jobs for qualifying employees for each EB-5 investor in the project. Construction progress and the project’s ability to reach completion therefore directly affect the number of jobs created. To support approval of a permanent U.S. green card — the ultimate goal for investor families — investors should carefully assess not only the developer’s capacity and track record but also the project’s feasibility and commercial prospects.

Nextlink Rural Broadband: a rural EB-5 project from regional center operator CanAm

Having worked with the EB-5 program for more than 15 years, IMM Group has been looking for rural EB-5 projects strong enough to present to investors. Nextlink Rural Broadband is a project that meets IMM Group’s criteria: it is structured to support both the investor’s green card outcome and the prospects for repayment of capital.

At the time of writing, Nextlink Rural Broadband was the latest rural EB-5 project from regional center operator CanAm Enterprises. The project involves building and operating a high-speed fiber internet network across 13 rural areas of Texas, expected to serve roughly 35,000 residential and business customers in target areas that lack internet or high-speed internet. The project is seen as having strong commercial prospects and favorable conditions for rollout, since universal access to high-speed internet has been a U.S. government priority in recent years.

Total project capitalization is US$110 million, of which EB-5 capital is expected to be US$80 million, corresponding to 100 investors. The EB-5 offering is sponsored by CanAm Enterprises, one of the longest-established regional center operators, with an extensive track record. Although the project came to market only recently, its potential and the priority processing available to its petitions meant investor allocations were filling quickly at the time of writing. Interested investors should review the opportunity carefully and confirm current availability with IMM Group before making an investment decision.

At the time of writing, IMM Group also offered other EB-5 projects beyond rural projects that met program requirements, were assessed for green card petition risk and for capital preservation features, and offered growth potential — such as the Whisky Hotel in the heart of Hollywood and the Hutchinson Island Apartments residential project from the EB5 Capital regional center.

If you are considering the EB-5 Immigrant Investor Program, contact IMM Group or leave your details below. Our experienced advisors will provide detailed guidance and help assess the strength of your case. We will keep your personal data confidential and use the information you provide only to advise on your family’s case.

IMM Group

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