In the EB-5 Reform and Integrity Act of 2022 (“RIA”), the term “rural area” is used to identify locations that are eligible for the lower investment threshold of US$800,000 rather than the base investment amount of US$1,050,000. It is designed to promote investment in infrastructure, development, and economic growth in less populated areas
According to the RIA, a “rural area” is any place that is:
- Not in a Metropolitan Statistical Area (“MSA”): According to the Director of the Office of Management and Budget, areas that might be otherwise be considered “rural” but are within the geographic area of a “MSA”, are ineligible for the rural area designation.
- Beyond the limits of towns or cities with 20,000 or more residents: An urban area is defined as the outside limit of any city or town with 20,000 or more residents.
This concept is important to encourage investment in rural communities that face challenges like lower population densities, restricted access to services, and fewer economic prospects in attracting the economic assistance they need. In adding rural areas to the EB-5 program, Congress hopes to drive investment to these areas which can benefit from this and other programs designed to address their particular needs.
Frequently Asked Questions About Rural Areas in the EB-5 Program
How is a rural area defined under the EB-5 RIA?
Under the EB-5 Reform and Integrity Act of 2022, a rural area is any location that satisfies both of the following: it is not located within a Metropolitan Statistical Area (MSA) as defined by the OMB, and it is outside the boundaries of any city or town with a population of 20,000 or more based on the most recent available census data. Both conditions must be met simultaneously.
What is the minimum EB-5 investment for a rural area project?
The minimum EB-5 investment for a project located in a rural area is $800,000 – $250,000 less than the $1,050,000 standard minimum that applies to projects outside a Targeted Employment Area. This is one of the primary benefits of selecting a rural project in the EB-5 program.
Do rural EB-5 projects receive priority visa allocation?
Yes. Under RIA 2022, 20% of the total annual EB-5 visa numbers are reserved specifically for rural area projects. This is an additional advantage beyond the lower minimum investment, and is a key reason why rural projects are particularly attractive to investors from countries without visa backlogs such as Vietnam and the Philippines.
Can an area that looks rural but is inside an MSA qualify?
No. Under RIA, the most critical requirement is that the area must not fall within the geographic boundaries of an MSA as defined by the OMB – regardless of how the area appears geographically. Many areas may have low population density and rural characteristics but still fail to qualify because they fall within an MSA boundary.
What is the difference between a rural area and a high unemployment TEA in the EB-5 program?
Both are Targeted Employment Areas (TEAs) and both qualify for the $800,000 minimum investment. The key difference is that rural area projects receive a 20% annual visa set-aside under RIA, while high unemployment TEA projects do not have a dedicated set-aside. The qualifying criteria are also completely different – rural areas are determined by population and MSA boundaries, while high unemployment TEAs are determined by unemployment rates relative to the national average.
If you have question about the EB-5 visa, contact us at info@enterlinepartners.com.
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