EB-5 Integrity Fund and Regional Center Reauthorization: 2025 Update for Turkish Investors

The EB-5 Immigrant Investor Program provides a pathway to U.S. permanent residence (a "green card") for foreign nationals who make a qualifying investment in a new commercial enterprise that creates at least 10 full-time jobs for U.S. workers.

The program has two pathways:

1. Direct investment: The investor directly invests in and manages a new commercial enterprise
2. Regional Center program: The investor invests through a USCIS-designated Regional Center, which pools investor capital for larger projects

The EB-5 program has been a significant pathway for Turkish investors seeking U.S. permanent residence. However, the program underwent fundamental restructuring in 2022, and Turkish investors must understand the current framework before making investment decisions.

The EB-5 Reform and Integrity Act of 2022 (RIA), enacted as part of the Consolidated Appropriations Act of 2022, made the most significant changes to the EB-5 program since its creation in 1990.

1. Permanent Reauthorization of the Regional Center Program The Regional Center program, which had operated under temporary authorizations since 1992, was permanently reauthorized under the RIA. This provides long-term certainty for investors and Regional Centers.

2. Increased Investment Minimums

• Standard investment: $1,050,000 (increased from $1,000,000)
• Targeted Employment Area (TEA) investment: $800,000 (increased from $500,000)
• TEAs include rural areas and areas with high unemployment

3. Set-Aside Visa Allocations The RIA created set-aside visa allocations for specific investment categories:

• 20% of EB-5 visas: Reserved for rural area investments
• 10% of EB-5 visas: Reserved for high unemployment area investments
• 2% of EB-5 visas: Reserved for infrastructure projects

These set-asides are significant because they can reduce wait times for investors in qualifying categories — particularly for investors from countries with high EB-5 demand (China, India) where visa backlogs are severe.

4. The Integrity Fund The RIA established the EB-5 Integrity Fund, funded by a $10,000 annual fee paid by each Regional Center. The fund is used to:

• Conduct audits and site visits of Regional Centers
• Investigate fraud and misuse of the program
• Enhance USCIS oversight of Regional Center operations

5. Enhanced Investor Protections The RIA enhanced investor protections, including:

• Mandatory disclosure requirements for Regional Centers
• Prohibition on certain conflicts of interest
• Enhanced reporting requirements
• Investor rights in the event of Regional Center termination

6. Direct Filing with USCIS The RIA allows investors to file their I-526E petition (the initial EB-5 petition) concurrently with the Regional Center's I-956F project approval petition, potentially reducing processing times.

Turkish investors must select a USCIS-designated Regional Center and a specific project within that Regional Center. Key due diligence considerations include:

• Regional Center's track record and financial stability
• Project's business plan and job creation projections
• Escrow arrangements and investor protections
• Management team experience
• Exit strategy and projected returns

The I-526E petition demonstrates that:

• The investment meets the minimum investment requirement
• The investment is in a qualifying new commercial enterprise
• The investment will create at least 10 full-time jobs
• The investor's funds are lawfully obtained

Processing time: USCIS processing times for I-526E petitions have varied significantly. As of early 2025, processing times range from 12 to 36 months, depending on the complexity of the petition and USCIS workload.

Once the I-526E is approved:

• Investors outside the U.S.: Apply for an EB-5 immigrant visa at a U.S. consulate (including the U.S. Consulate in Istanbul or Ankara)
• Investors in the U.S.: File Form I-485 (Application to Register Permanent Residence) to adjust status

Visa availability: EB-5 visas are subject to annual numerical limits. Turkish nationals are generally not subject to significant backlogs (unlike Chinese or Indian nationals), which means visa availability is typically not a significant constraint for Turkish investors.

Upon approval, the investor and qualifying family members receive conditional permanent residence (a two-year green card). Conditions are based on the investment remaining at risk and the job creation requirements being met.

Within 90 days before the two-year conditional green card expires, the investor files Form I-829 to remove conditions. The I-829 demonstrates that:

• The investment was sustained throughout the conditional period
• The required jobs were created and maintained

Upon approval of the I-829, the investor receives unconditional permanent residence (a 10-year green card, renewable indefinitely).

A Targeted Employment Area (TEA) is either:

• A rural area: Any area not within a metropolitan statistical area (MSA) or the outer boundary of any city or town with a population of 20,000 or more
• A high unemployment area: An area that has experienced unemployment of at least 150% of the national average rate

Under the RIA, TEA designations are made by USCIS (not by state governments, as was the case before the RIA). This change was intended to reduce manipulation of TEA designations.

The collapse of several Regional Centers in prior years — including cases involving fraud and misappropriation of investor funds — underscores the importance of thorough Regional Center due diligence.

Regional Center track record:

• How many projects has the Regional Center completed?
• Have investors received their capital back?
• Have investors received their green cards?
• Has the Regional Center ever been subject to SEC or USCIS enforcement action?

Project-specific due diligence:

• Is the project's business plan credible and supported by market analysis?
• Are the job creation projections realistic?
• What is the project's capital stack (equity, senior debt, EB-5 capital)?
• What are the escrow arrangements?
• What are the investor protections in the event of project failure?

Legal and compliance review:

• Has the Regional Center's offering been reviewed by experienced securities counsel?
• Is the offering registered or exempt from registration under federal and state securities laws?
• Are the disclosure documents complete and accurate?

Once a Turkish investor obtains U.S. permanent residence, they become a U.S. tax resident and are subject to U.S. income tax on their worldwide income. This is a significant consideration for Turkish investors with substantial income or assets outside the United States.

Turkish investors should engage U.S. tax counsel before obtaining permanent residence to:

• Assess the U.S. tax implications of their existing assets and income streams
• Consider pre-immigration restructuring to minimize U.S. tax exposure
• Understand the interaction between U.S. and Turkish tax obligations under the Turkey-U.S. Tax Treaty
• Plan for FBAR and FATCA reporting obligations

U.S. permanent residents must report:

• FBAR: Foreign bank accounts with aggregate balances exceeding $10,000 at any point during the year
• FATCA: Foreign financial assets exceeding specified thresholds

Turkish investors with Turkish bank accounts, investment accounts, and business interests must comply with these reporting requirements after obtaining permanent residence.

1. Start early: The EB-5 process takes several years from initial investment to unconditional permanent residence. Turkish investors who want U.S. permanent residence should begin the process well in advance of when they need it.

2. Engage experienced counsel: EB-5 is a complex program with significant legal, financial, and immigration dimensions. Engage counsel with specific EB-5 experience.

3. Conduct thorough due diligence: The history of EB-5 fraud underscores the importance of thorough Regional Center and project due diligence. Do not invest based solely on marketing materials.

4. Plan for U.S. tax obligations: Understand the U.S. tax implications of permanent residence before investing.

5. Consider the set-aside categories: Turkish investors who qualify for rural or high unemployment area investments may benefit from the set-aside visa allocations, which can reduce wait times.

The EB-5 program under the 2022 Reform and Integrity Act offers Turkish investors a viable pathway to U.S. permanent residence, with enhanced investor protections and permanent reauthorization of the Regional Center program. However, the program's complexity — and the history of fraud in the EB-5 space — requires careful due diligence and experienced legal guidance.

ULF New York advises Turkish clients on EB-5 investment structuring, Regional Center due diligence, immigration strategy, and pre-immigration tax planning. Contact us to discuss whether EB-5 is the right pathway for your U.S. immigration goals.

This article is for informational purposes only and does not constitute legal, immigration, or tax advice. EB-5 regulations and USCIS processing times continue to evolve; consult qualified counsel for current guidance.