Peachtree Group Receives I-956F approval from USCIS for EB-5 Palmdale Project
Peachtree Group secures I-956F approval from USCIS for its EB-5 Palmdale project. Learn how this project drives economic growth and investment opportunities.
The EB-5 Immigrant Investor Program’s intent is to stimulate economic growth and job creation in the United States by attracting foreign investment into various regions within the United States that are in need of economic stimulus and job creation.
To be eligible for permanent residency via the EB-5 Program, a foreign investor must invest a minimum of $1,050,000. This minimum investment can be reduced to $800,000 should the foreign investor invest in a Targeted Employment Area (TEA).
In this article we will:
- Explain what is a Targeted Employment Area (TEA)?
- The difference between High Unemployment TEA, and Rural TEAs.
- How to find a Targeted Employment Area.
- Why the EB-5 investment amount is lower for Targeted Employment Areas.
- What infrastructure projects have to do with TEAs.
What is a Targeted Employment Area (TEA)?
A TEA is a designation created by the U.S. Congress and enforced by the U.S. Citizenship and Immigration Services (USCIS) to attract investment in areas that experience high unemployment rates or in rural areas. Therefore, there are two types of TEAs; Rural Areas and High Unemployment Areas. TEAs must have at least an unemployment rate of 150% of the national average.
The EB-5 Reform an Integrity Act of 2022 (RIA) brought forward visa set-aside categories or also known as reserved visas. There is a set aside of 32% of all EB-5 Visas. It created an annual set-aside of 10% of all the EB-5 visas for investments made in high-unemployment TEAs and an annual set-aside of 20% of all the EB-5 visas for investments made in rural TEAs. These set-asides offer post-RIA investors a potentially immediately available visa upon I-526Eapproval, even if they are from a backlogged country and offer an investment minimum of $800,000.
High-Unemployment TEA
For an area to qualify as a high-unemployment TEA, an area must have an unemployment rate of at least 150% of the national U.S. average unemployment rate.
High-unemployment TEAs can now only include the census tract of the investment project and directly adjacent census tracts. This new definition was established by the EB-5 Reform and Integrity Act of 2022 (RIA). TEA designations are granted by The U.S. Citizenship and Immigration Services. High-unemployment designation is valid for two years and can be renewed in two-year increments.
The set-asides offer post-RIA investors a potentially immediately available visa upon I-526E or I-526 approval, even if they are from a backlogged country.
Rural TEA
A Rural TEA is an area that is outside of a metropolitan statistical area and beyond the outer boundary of a city or town with a population of 20,000 inhabitants or more. Rural TEAs encourage EB5 rural investment in rural areas that have a need for economic development and job creation.
Rural EB-5 petitioners are eligible for priority processing, although the exact timeline for processing is not yet defined by USCIS. The EB-5 Reform and Integrity Act of 2022 established an annual set-aside of 20% of all EB-5 visas for investments made in rural TEAs. This set-aside offers post-RIA investors a potentially immediately available visa upon I-526Eapproval, even if they are from a backlogged country. Additionally, rural EB-5petitions may receive priority processing, which is an average of a 12-monthprocessing time.
How do I find a targeted employment area?
A targeted employment area list can be found by using a TEA mapping tool. Invest in the USA (IIUSA), the EB-5 industry’s trade organization provides an interactive TEA mapping tool found here: https://iiusa.org/resources-data/targeted-employment-areas/. One can access the TEA map and review in-depth data about each census track. The map is updated annually with labor data released by the U.S. Bureau of Labor Statistics by county.
Why is the EB-5 investment amount lower for targeted employment areas?
The EB-5 investment amount in a Rural or High Unemployment Area TEA or Infrastructure project is reduced to $800,000 from $1,050,000 based on geographic and unemployment data issued by the U.S. Bureau of Labor Statistics.
Infrastructure Projects
In addition to targeted employment areas, infrastructure projects also have a visa set-aside of 2% of the total EB-5 visas, and they are treated similarly to TEA EB5 projects in terms of the required investment amount.
The EB-5 Reform and Integrity Act of 2022 defines between "targeted employment areas” and “infrastructure” projects; however, infrastructure projects are treated similarly to TEA projects as they have the same investment amount of $800,000 and also have a visa set-aside of 2% of the total EB-5 visas.
Peachtree Group Projects
Peachtree Group projects are in Targeted Employment Areas. Current projects include:
Taking the Next Steps with Peachtree
Here’s how you can begin your journey to U.S. residency with an EB-5 investment, guided every step of the way by Peachtree Group's expertise and dedication to simplicity, transparency, and success. Learn more about The Peachtree Advantage.
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Start by visiting our website where you can learn more about our specific EB-5 investment opportunities.
We designed our site to be user-friendly and simple.
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When we’ve got your information, one of our investor relations managers will reach out to you.
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ATLANTA, GA – Peachtree Group ("Peachtree") has received its I-956F approval from U.S. Citizenship and Immigration Services (USCIS), the government agency that oversees the EB-5 Immigrant Investor Program, for the firm’s TownePlace Suites by Marriott in Palmdale, Calif., which is currently under construction.
The I-956F approval, granted by USCIS, marks a crucial step in Peachtree’s ongoing efforts to facilitate investment opportunities through the EB-5 program, which is designed to promote economic growth and job creation in the U.S. This is the second hotel development for which Peachtree has received approval, having previously secured it for its Home2 Suites by Hilton development in Boone, N.C.
"We are excited to receive USCIS approval for our Palmdale project," said Adam Greene, EVP of EB-5 at Peachtree. "This achievement underscores our continued commitment to delivering high-quality developments that drive economic growth and create meaningful opportunities for investors and local communities alike."
The TownePlace Suites by Marriott in Palmdale is expected to be a premier extended-stay hotel, offering modern accommodations and amenities tailored to the needs of both business and leisure travelers. The hotel is slated for completion by spring 2025.
“We focus on hotel development because the sector has proven to be exceptionally resilient, offering agility and flexibility in navigating economic challenges. With limited new hotel supply and surging travel demand, new assets are positioned to outperform, especially in the post-COVID era, where strong fundamentals and market dynamics create significant opportunities. The forecast of global travel spending reaching $15.5 trillion over the next decade, outpacing inflation, further underscores the long-term potential of the hospitality industry, making it a highly attractive investment opportunity,” said Greene.
Peachtree launched its EB-5 program in 2023 as a key financing tool to support job-creating projects nationwide. The firm remains committed to delivering high-quality investment and development opportunities through its expanding portfolio of EB-5 projects.
“The TownePlace Suites development, like the Home2 Suites, includes a substantial owner equity investment. This alignment of interests with our EB-5 investors fosters a shared commitment, reinforcing confidence in the project’s success and reassuring all stakeholders," Greene added.
The EB-5 visa program allows foreign investors to obtain a green card in exchange for making a significant investment in a new commercial enterprise that creates jobs in the U.S. Under the program, foreign nationals who invest a minimum of $800,000 in a U.S.-based project that creates or preserves at least 10 full-time jobs for U.S. workers are eligible to apply for permanent residency.
About Peachtree Group
Peachtree Group is vertically integrated investment management firm specializing in identifying and capitalizing on opportunities in dislocated markets, anchored by commercial real estate. Today, the company manages billions in capital across acquisitions, development and lending, augmented by services designed to protect, support and grow its investments. For more information, visit www.peachtreegroup.com.
What is Form I-829 for EB-5?
A detailed guide to understanding the I-829 form and its critical role in the EB-5 Immigrant Investor Program. It includes an overview of the I-829 form, the conditions for removing the conditional status of a green card, and the specific information and documents required for the application.
Form I-829, Petition by Investor to Remove Conditions on Permanent Resident Status is filed by EB-5 investors to remove the conditions on their two (2) year green cards. The investors obtained the conditional green cards through their investment in a new commercial enterprise. Filing the Form I-829 is a crucial step in the EB-5 investor’s immigration process as once approved it allows the investors, along with their spouses and unmarried children under twenty-one (21), to achieve permanent residency in the United States. In this article, we explore the I-829 Form in detail, covering its purpose, eligibility requirements, necessary documents, filing timeline, common challenges, and practical tips for a successful submission.
Overview of the I-829 Form
Due to the conditional nature of the EB-5 investors’ permanent resident status, between 21 – 24 months after receiving the conditional green card, the EB-5 investors have to file an I-829 EB5 Form with USCIS to remove the condition on their permanent resident status. The EB-5 investors provide documentation to demonstrate they fulfilled the program’s requirements, including proof they sustained their investment and created the required number of jobs. The I-829 form is the final step in the EB-5 investors’ immigration process, and once approved investors become unconditional permanent residents of the United States.
Conditions for Removing Conditional Status
To successfully remove the conditions on the green card, the following requirements must be met:
- Invested Capital: The EB-5 investor must show they have invested or are actively in the process of investing the required capital; and the capital was made available to the business(es) most closely responsible for job creation.
- Sustained Investment: The EB-5 investors must show they have sustained their investment in the new commercial enterprise for two (2) years from the time their investment was made available to the entity most closely responsible for creating the jobs.
- Job Creation: The EB-5 investors must also show at least ten (10) full time positions for qualifying employees have been directly or indirectly created or will be created within a reasonable time. In the case of a troubled business, the EB-5 investors must submit evidence showing the number of existing employees were maintained at no less than the pre-investment level during the period of the EB-5 investors’ conditional permanent residence.
Specific Information and Documents Required
When filing Form I-829, the EB-5 investor needs to provide a variety of documents to support their petition, including:
- Investment Evidence: Proof that the EB-5 investors’ capital contribution has been invested and sustained which may include but is not limited to: financial statements, bank statement, contracts, federal or state income tax returns.
- Job Creation Documentation: The evidence needed to prove job creation is determined by the type of investment, direct or through a regional center.
- The documentation for jobs created indirectly as a result of an investment in a regional center may include, but is not limited to: tax and financial statements, expenditure and revenue reports, construction draws, invoices and receipts, bank statements, quarterly reports etc. In addition, at the I-829 stage, an Economic Impact Report is generally commissioned to evaluate the actual number of jobs created from the construction and operation of the Project selected by the EB-5 investors. This report is generated based on the actual EB-5 eligible costs spent on the Project, as well as the actual revenue generated by the Project. This report is different than the initial Economic Impact Report provided to USCIS with the Form I-956F, Application for Approval of an Investment in a Commercial Enterprise filing as the inputs for calculating the jobs are no longer projections, but actual costs incurred during development of the Project and actual revenue generated during the second or third year of the Project’s operation.
- The documentation of jobs created directly by the new commercial enterprise may include but is not limited to: payroll records, W-2s, employer’s quarterly federal tax returns, Forms I-9s, identification documents of the direct employees or any other evidence showing the required jobs were created or preserved.
- Personal Information: Identification documents, such as copies of the applicant’s passport, green card, and any previous immigration documentation.
Timeline for Filing the I-829 Form
The I-829 form must be file within the 90-day period immediately before the second anniversary of the EB-5 investor’s admission as a conditional permanent resident. Filing early or late may result in complications or even the termination of the EB-5 investor’s conditional permanent resident status, so it is critical to adhere to this timeline.
I-829 Processing Time
The processing time for Form I-829 is listed on USCIS website. During this period, USCIS reviews the I-829 petition, request additional evidence, if necessary, and eventually reach a decision. It is important to note that while the EB-5 investor’s I-829 petition is pending, the conditional permanent residency status is automatically extended for the period indicated on the EB-5 investor’s filing receipt. After filing the I-829 Petition, the EB-5 investor receives a filing receipt notice from USCIS, which should accompany their expired green card.
Common Challenges and Practical Tips
Filing Form I-829 can be complex, and applicants may face several challenges, including:
- Incomplete or Inconsistent Documentation: Ensure that all required documents are complete, accurate, and consistent throughout the petition.
- Prove Job Creation: Demonstrating the investment has created or preserved ten full-time jobs can be challenging, especially in projects that face delays or other complications. The EB-5 investor who select to invest in one of Peachtree Group’s projects should be assured that all the project related documents necessary for their Form I-829 filing are collected, reviewed and assembled into an I-829 Template by Peachtree. The I-829 Template will be provided to our EB-5 investors well in advance of their 90-day filing window.
- Meet the Filing Deadline: Missing the 90-day filing window jeopardizes the chances of removing the conditions on the green card.
Practical Tips for a Successful Submission
- Start Early: EB-5 investor should begin gathering the necessary documentation well in advance of the filing deadline to ensure that everything is in order.
- Consult with Experts: EB-5investors should work with their immigration attorneys and consultants experienced in the EB-5 process to prepare their petition and provide guidance. If you don’t have an immigration attorney, Peachtree Group can recommend several that have collaborated with us in the past.
- Double-Check All Information: Review form and documents for accuracy and consistency before these are submitted to USCIS.
- Stay Informed: Keep up to date with any changes in immigration laws or USCIS policies that could affect the petition.
Frequently Asked Questions
What is the I-829 Form?
The I-829 Form is a petition filed by EB-5 investors to remove the conditions on their permanent resident status. It is the final step in the EB-5 process, allowing investors to obtain an unconditional green card if the EB-5 Program's requirements are met.
How Do I Fill Out the I-829 Form?
To fill out the I-829 Form, the EB-5 investors must provide personal information, details about their investment, and evidence they have sustained the investment and created the required number of jobs. The I-829 Filing is a voluminous filing, containing numerous exhibits which generally include financial statements, tax returns and bank statements for numerous years, as well as constructions draws, expenditure reports, revenue repots and a job creation analysis, encompassing thousands of pages of supporting documents.
Why Do You Need to Fill Out the I-829 Form?
Filling out the I-829 form is necessary to remove the conditions on the EB-5 investor’s green card. if this petition is not filed, the conditional resident status will expire, and the investor will lose the ability to become a permanent resident of the United States.
What Happens After the I-829 Form is Approved?
Once the I-829 Form is approved, the EB-5 investor, their spouse, and their unmarried children under 21 become permanent resident of the United States of America. This status grants EB-5 investors many rights and privileges, including the ability to live and work in the United States, to own property, attend public school and colleges, and be protected by the laws of the United State and of the State where the EB-5 investors reside.
Additional Resources
For more information about the I-829 Form and the EB-5 Immigrant Investor Program, consider consulting the following resources:
- USCIS Website: Access official forms, instructions, and updates on processing times.
- A Simple Guide to EB-5 Immigration by Investment
- Immigration Attorneys: Seek legal advice from professionals specializing in EB-5 cases. If you are not familiar with an immigration attorney, contact Peachtree Group, our team can give you contact information for several knowledgeable lawyers.
- Contact Peachtree Group: Contact Peachtree Group for guidance on specific investment opportunities and compliance requirements.
EB-5 Investment Thresholds Set to Rise: What You Need to Know
The EB-5Immigrant Investor Program, established in 1990, has undergone significant changes with the EB-5 Reform and Integrity Act of 2022 (RIA). Understanding this law is crucial for potential investors as it includes insight into how the United States government will handle increases in the minimum EB5 investment amount moving forward. Increases are expected to take effect in January 2027, less than two and a half years from now.
The EB-5 Immigrant Investor Program, established in 1990, has undergone significant changes with the EB-5 Reform and Integrity Act of 2022 (RIA). Understanding this law is crucial for potential investors as it includes insight into how the United States government will handle increases in the minimum EB5 investment amount moving forward. Increases are expected to take effect in January 2027, less than two and a half years from now.
Current EB5 Investment Amount
Historically, the required EB5minimum investment was $1 million for non-targeted employment areas and $500,000 for projects in targeted employment areas (TEAs), regions characterized by high unemployment or rural status. The Reform and Integrity Act of 2022 raised these thresholds significantly to reflect economic changes since the program's inception. The new minimum EB 5visa investment amount requirement is now $1,050,000, reduced to $800,000 for TEAS] and qualifying infrastructure projects.
A Mandate for Automatic Adjustment Jan. 1, 2027
A notable requirement in the RIA law mandates automatic adjustments of the investment thresholds every five years, beginning January 1, 2027. These adjustments will be based on the cumulative annual percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) reported by the Bureau of Labor Statistics. This ensures that the investment amounts remain aligned with inflation and economic conditions, preventing another extended period without adjustment.
Using CPI data from January 1, 2022, through July 31, 2024, we can understand the impact of inflation on the investment thresholds. As of July 31, 2024, the CPI-U index was recorded at 314.340, reflecting a 12.75% cumulative change since December2021 when it was 278.802. This real-time data provides valuable insights into how inflation influences the EB-5 investment requirements.
The increased thresholds and automatic adjustments reflect public policy choices by Congress to ensure the EB-5 program remains practical and reflects current economic conditions. This means a higher initial investment. Understanding the automatic adjustment helps investors plan their finances better, knowing that the requirements will evolve with inflation.
Planning for an Increase to EB5 Investment Amount
The changes brought by the RIA mark a significant shift in the investment landscape for prospective EB-5 investors. The program aims to remain relevant and economically viable by incorporating automatic adjustments based on inflation. Investors should stay informed about these changes and consider potential future increases in their planning.
So what will increases look like? According to the Peachtree Group EB-5 team’s conservative calculations, in January 2027, we expect the lowest investment threshold will increase from $800,000 to between $900,000 to $975,000. Here’s how we came to this conclusion.
Projected EB-5 TEA Amount in 2027
To set a baseline, the Peachtree Group team reviewed the relevant CPI index numbers from Dec. 21, 2021 to August 14, 2024, and projected future CPI increases based the Federal Reserve’s target inflation rate of 2% per year to demonstrate the projected CPI number (blue line).
Using this data the team created lines for the project amount of the targeted employment area amount and reviewed three scenarios:
Under the latest inflation rate reported for July 2024 (1.4% per year), the investment threshold as of January 1, 2027 would increase to $900,000. (yellow line)
If inflation settles at the Federal Reserve’s target of 2% per year from today, the investment threshold would be $900,000 as of January 1, 2027 (green line)
If inflation continues at the cumulative average rate since the reference date of January 1, 2022(4.9% per year), the investment threshold as of January 1, 2027 would increase to $975,000 (red line)
Using the law and statistics and extrapolation to 2027, we reach our conclusion that we expect as of January 2027, the lowest investment threshold will increase to between $900,000 to $975,000.
What Can You Do Now?
No one can be certain of what the future holds, even when hypothesizing based on historical data. However, what we do know is there will be automatic adjustments to the minimum EB5 investment amount per the RIA and those adjustments are expected to take effect in January 2027, less than 2.5 years from today.
To lock in the lower EB5 investment amount, it is important to get the process started. Peachtree Group is an integrated investment management firm specializing in identifying and capitalizing on opportunities in dislocated markets, anchored by commercial real estate. Today, we manage billions in capital across acquisitions, development, and lending, augmented by services designed to protect, support, and grow our investments.
Our EB-5 Team has more than30 years combined experience in EB-5 investments managing over $2 billion in EB-5 transactions. Learn about the Peachtree Advantage and let us help you navigate the difficult EB-5 process before investment amounts rise.
Taking the Next Steps with Peachtree
Here’s how you can begin your journey to U.S. residency with an EB-5 investment.
Visit Our Website
Start by visiting our website where you can learn more about our specific EB-5 investment opportunities.
We designed our site to be user-friendly and simple.