Potential EB-5 Amount Increase Extended for a Limited Time

Published: March 25, 2019

U.S. Congress has significant traction in reform regarding the EB-5 program, which includes language regarding the minimum investment amount increase. As of February, Congress extended the EB-5 Program with no changes until September 30, 2019 at the latest. However, changes could be made sooner than that date.

The EB-5 Regional Center Program has skyrocketed in popularity over the last eight (8) years. As popularity has grown and demand for a limited allotment of EB-5 visas have grown, legislative changes have not kept up. In an effort to equalize supply and demand, there is now a high probability that there will be an increase in the minimum investment amount for the EB-5 program to take effect on September 30, 2019, although the industry is unsure about how much the increase will be.

Legislation Defined

The extension allows for the EB-5 program to continue running as is, with EB-5 investors earning their United States permanent residency with a $500,000 minimum investment. It allows developers, to continue to structure EB-5 capital raises with an opportunity to market EB-5 investors for EB-5 real estate development projects.

Proposal

The exact EB-5 policy changes made by this rule will not be known until a final rule is published. Some of the proposed changes include:

  • An increase to the minimum investment threshold: from $1,000,000 to $1,800,000 for standard investments and from $500,000 to $1,350,000 for investments in targeted employment areas (TEAs)
  • A shift in TEA designation authority from individual states to the Department of Homeland Security
  • A refined definition of “targeted employment area” to include metropolitan statistical areas, counties, cities, single census tracts, and limited groups of census tracts experiencing high unemployment rates
  • Under certain circumstances, the ability for investors with approved I-526 Petitions to keep their priority dates while filing new I-526 Petitions
  • The ability for spouses and children of petitioners to file I-829 Petitions even if they are not named on the investor’s petition

Potential Change

In light of these upcoming policy changes, now is the time to gather your source of funds documents, choose a regional center for partnership, and file your petitions before any potential changes go into effect. And since the minimum capital requirement is likely to increase substantially, now is the time for investors to make their investments.

To further assist in the pursuit of filing thorough, strong petitions as early as possible, Christian Tyler Properties has several tie-ups and agreements with lenders in different markets around the world that can secure financing for families who do not have the full investment amount liquid at this time.

For more information, please contact us at info@christiantylerproperties.com