EB-5 Immigrant Investor Program updated rules take effect November 21, 2019.
The USCIS is making major changes to the EB-5 Immigrant Investor Program.
Three significant factors played into the decision to revise the program, including economic inflation since the early 90s, the gerrymandering of TEAs (Targeted Employment Areas), and fears that the program itself has distanced itself from Congressional Intent.
“This rule also makes a technical correction to the inflation adjustment formula, so that future inflation adjustments will be based on the initial investment amount set by Congress in 1990, rather than on the most recent inflation adjustment.” (See Page 10 of the Unpublished Rule)
The minimum investment required under the EB-5 program has been raised from $1,000,000.00 to $1,800,000.00 ($1 million to $1.8 million). Accordingly, the minimum for investments made in a targeted employment area has also been raised to account for inflation, from $500,000.00 to $900,000.00 ($500k to $950k).
“DHS will eliminate state designation of high unemployment areas. DHS also amends the manner in which investors can demonstrate that their investments are in a high unemployment area.” (See Page 18 of the Unpublished Rule)
The USCIS fears the EB-5 Immigrant Investor Program is losing touch with Congressional intent. Former USCIS Acting Director, Ken Cuccinelli, stated,
“Since its inception, the EB-5 program has drifted away from Congress’s intent. Our reforms increase the investment level to account for inflation over the past three decades and substantially restrict the possibility of gerrymandering to ensure that the reduced investment amount is reserved for rural and high-unemployment areas most in need. This final rule strengthens the EB-5 program by returning it to its Congressional intent.” (Ken Cuccinelli on the remodeling of the EB-5 program)
If you or someone you know are thinking about making an EB-5 investment, Christians Law, PLLC is here to help. Tyler Christians is an experienced EB-5 attorney and can help you navigate the EB-5 Immigrant Investor Program process.
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Christians Law, PLLC is an immigration and criminal defense law firm with offices in Falls Church, Virginia, and Oklahoma City, Oklahoma.