EB5 INVESTMENT REQUIREMENTS CHANGING EFFECTIVE 21.NOV.2019

The U.S. Department of Homeland Security (DHS) is scheduled to publish in the Federal Register a final rule related to the employment-based, fifth preference (EB5) immigrant investor program that will dramatically increase the minimum investment requirements, among other changes. 

The final rule will apply only to I-526 petitions filed on or after November 21, 2019.

What is the EB-5 Visa program and what is changing?

The EB-5 Visa program allows foreign investors and their family members to obtain lawful permanent residence in the U.S. if they meet certain thresholds for investment in U.S. businesses that generate new jobs (or maintain jobs that would have otherwise been eliminated) in targeted areas for economic development. Congress permits approximately 10,000 EB-5 Visas to be issued per year.

The most notable change in the final rule is that the minimum investment amount will increase to $1.8 million for standard investments, and $900,000 for investments made in a targeted employment area (TEA). A TEA is a rural area or area of high unemployment. 

The rule modifies the original proposal that any city or town with a population of 20,000 or more may qualify as a TEA, to provide that only cities and towns with a population of 20,000 or more outside of metropolitan statistical areas (MSAs) may qualify as a TEA.

The final rule adds a provision to automatically adjust the minimum investment requirements every five years based on inflation.

The final rule includes several other changes to the EB5 program. It clarifies the rules regarding priority date retention in EB5 cases, and modifies how a TEA may be designated. 

The final rule also clarifies the rules regarding removal of conditions for derivative family members.

The final regulation changes are likely to include increased thresholds for investment by eligible foreign investors and will also likely limit the scope and availability of projects that are eligible to qualify investors for lower investment thresholds.

As these regulations are expected to take effect between 30-days and 60-days following publication in the Federal Register, foreign investors who are potential EB-5 Visa applicants should remain informed and act promptly to submit visa applications to United States Citizenship and Immigration Services.