Securities compliance considerations when preparing offering documents in a post-RIA world
As the disclosure of obligations increased significantly under RIA , the new regulation caused some uncertainties , including promoter fees , the sustainment period , filing deadlines and job creation priority .
By Ronald R . Fieldstone and Rohit Kapuria
The EB-5 Reform and Integrity Act of 2022 ( RIA ) had much guidance that would seem intuitive and much that remains unclear as a result of the absence of definitive guidance from USCIS on a number of interpretive matters related to the RIA ’ s requirements .
The RIA brought forth special set-asides that include 20 % or 2,000 visas per year for rural projects and 10 % or 1000 visas for TEA projects and 2 % for infrastructure projects .
These set-asides enable Mainland Chinese and Indian nationals to be current for a period of time in investing in these projects and also receive priority processing . Pre-RIA investors do not get this benefit and are subject to a multi-year retrogression .
As a result , especially for rural projects that already have two years of visas for the current and past fiscal years together with excess visas that add on to these numbers , the demand for these investment opportunities has increased dramatically , Many of the rural projects are in high end markets that make the opportunity that much more attractive .
The new provision of the RIA also allows concurrent filing for those EB-5 investors who are in the U . S . If the EB-5 investor is
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