The EB-5 Reform and Integrity Act created three set-aside categories with distinct benefits. In today’s constrained visa environment—where demand increasingly outpaces supply—choosing the right set-aside pathway has become a strategic decision that significantly impacts both immigration timelines and investment outcomes.
Peter Calabrese, CEO of CanAm Investor Services, and Jennifer Hermansky, National EB-5 Committee Chair for AILA and Shareholder at Greenberg Traurig, compared these pathways to help investors make informed choices in an increasingly competitive landscape.
Understanding the Constrained Visa Environment
The EB-5 program operates under fixed annual visa limits—approximately 10,000 visas per year. When demand exceeds supply, retrogression occurs: processing times extend and investors face potentially years-long waits.
The three set-aside categories encourage investment in specific project types:
- Rural Area Projects: Counties/cities with populations under 20,000
- High Unemployment Area (TEA) Projects: Areas with unemployment 150% of national average
- Infrastructure Projects: Government-administered public works
Each receives dedicated visa allocations, theoretically insulating them from broader retrogression. However, as demand surges—particularly for rural projects—even set-aside categories face growing pressure.
“There’s very likely going to be retrogression,” Calabrese noted. “That’s just a matter of the demand making its way through.”
Side-by-Side Comparison
| Factor | Rural | High Unemployment (TEA) | Infrastructure |
| Investment Amount | $800,000 | $800,000 | $800,000 |
| Annual Visa Allocation | ~2,000 (20%) | ~1,000 (10%) | ~200 (2%) |
| Current Demand | High | Moderate | Minimal |
| Project Availability | Abundant | Good | Extremely Limited |
| Retrogression Risk | Growing | Moderate | Minimal |
| Geographic Flexibility | Rural areas only | Urban & suburban | Depends on project |
| Track Record | Extensive | Extensive | Very Limited |
Investment Amounts: Equal Across All Set-Asides
All three set-asides offer the same $800,000 investment threshold—a $250,000 savings (24% reduction) compared to non-set-aside projects at $1,050,000.
“Like the other types of set-aside categories—the high unemployment and also the rural—these investors get the benefit of the $800,000 investment,” Hermansky explained.
Since investment amounts are uniform, visa availability, timing, and project quality become the critical differentiators.
Visa Allocations: Where Categories Diverge
The most significant difference is the number of visas reserved for each category:
Rural Projects: 2,000 annual visas (20%)
- Largest allocation with most cushion
- High demand reducing available reserve
- Best for volume, facing growing competition
TEA Projects: 1,000 annual visas (10%)
- Moderate allocation with balanced demand
- Some accumulation year-over-year
- Middle ground between volume and scarcity
Infrastructure Projects: 200 annual visas (2%)
- Smallest allocation in absolute terms
- Minimal demand creates substantial reserve
- Best visa availability relative to utilization
The Rollover Advantage
“Unused visas from one fiscal year roll over to the next,” Calabrese noted, “creating an accumulating reserve.”
For infrastructure specifically, years of minimal usage have created a substantial reserve—a strategic advantage for early investors in qualifying projects.
Retrogression Outlook: Critical for Timeline Planning
Rural Projects: Growing Pressure
- Currently largely current but demand building
- Thousands of I-526E petitions filed
- Potential retrogression within 1-3 years
- First-mover advantage matters
TEA Projects: Moderate Risk
- Generally current with manageable demand
- Lower near-term retrogression risk than rural
- May see spillover from rural constraints
- Safer bet for timeline-sensitive investors
Infrastructure Projects: Minimal Risk
- Visas fully available with virtually no utilization
- Could remain current 5-10+ years
- Best outlook for timeline certainty
- Early investors at front of any future queue
Strategic Decision Framework
Choose the right set-aside based on your priorities:
If Your Priority Is: Immigration Timeline
- Maximum urgency (need green card ASAP): → Infrastructure (if available) or TEA
- Moderate timeline (willing to wait 1-3 years): → TEA or Rural
- Flexible timeline: → Choose based on project quality
- Overall best choice: Infrastructure (if accessible) or TEA for the best visa outlook and processing certainty
If Your Priority Is: Project Selection
- Need many options: → Rural (dozens of projects)
- Moderate options sufficient: → TEA
- Willing to wait for strategic opportunity: → Infrastructure
- Overall best choice: Rural due to the abundant project supply
If Your Priority Is: Risk Tolerance
- Low risk (must have visa certainty): → Infrastructure > TEA > Rural
- Moderate risk: → TEA
- Focused on other factors: → Rural offers most selection
- Overall best choice: TEA, which has a balance of availability, selection, and proven track record
If Your Priority Is: Geography
- Must be in/near major city: → TEA (only urban option)
- Open to rural locations: → Rural or Infrastructure
- No preference: → Any set-aside works
EB-5 Due Diligence Checklist by Category
Rural Projects:
- Verify population under 20,000
- Assess job creation methodology
- Evaluate rural location market demand
TEA Projects:
- Confirm unemployment meets 150% threshold
- Monitor designation maintenance
- Review economic reports
Infrastructure Projects: –
- Confirm governmental entity is borrower (critical)
- Verify public works definition met
- Assess government creditworthiness
“Even though it’s an infrastructure project and it is a government entity that is going to ultimately be the JCE, it doesn’t mean it’s guaranteed,” Calabrese emphasized. “Your at-risk provision is still very much a part of an infrastructure EB-5 project.”
The Bottom Line
Each EB-5 set-aside offers $800,000 investment threshold but differs significantly in visa allocations, project availability, and retrogression outlook:
- Rural: Most visas, highest availability, growing retrogression risk
- TEA: Moderate visas, good availability, moderate risk
- Infrastructure: Fewest visas, minimal availability, lowest retrogression risk
In a constrained visa environment, the right choice depends on your priorities: project selection, timeline certainty, geographic preferences, and risk tolerance.
For investors who can identify qualifying infrastructure projects, the category offers compelling advantages—particularly dedicated visas and minimal competition that could keep processing current for years.
For most investors, the strategic choice will be between rural’s abundant selection and TEA’s balanced approach, with careful attention to timing given evolving retrogression.
The key is making an informed, strategic decision rather than a reactive one—and acting decisively once that decision is made.
About the Speakers
Peter Calabrese is the Chief Executive Officer of CanAm Investor Services, LLC, the FINRA registered broker-dealer affiliate of CanAm Enterprises, one of the most successful regional centers in the EB-5 program’s history. Prior to joining CanAm in 2015, Mr. Calabrese worked for 15 years in institutional sales and trading, focusing on equity derivatives and volatility products with firms including ICAP and WallachBeth Capital. He earned a Bachelor’s degree in Business Economics from Brown University and holds FINRA Series 7, 24, 63, and 66 licenses. Under his leadership, CanAm Enterprises has raised over $3 billion in private placement funds and created more than 100,000 U.S. jobs through its EB-5 projects.
Jennifer Hermansky is a Shareholder at Greenberg Traurig LLP in Philadelphia, where she focuses on employment-based immigration and leads the firm’s EB-5 practice. She has structured over $3 billion in EB-5 capital raises and has successfully guided thousands of families through the EB-5 process, filing I-526, I-526E, and I-829 petitions for both regional center and direct EB-5 investors. Currently serving as the National EB-5 Committee Chair for the American Immigration Lawyers Association (AILA), Ms. Hermansky is a recognized thought leader who frequently speaks at national and international conferences. She has been named to EB5 Investors Magazine’s “Top 25 Attorneys” multiple times since 2013 and earned her law degree cum laude from Drexel University’s Earle Mack School of Law.
