Changes that will happen in EB-5 laws post-November 21, 2019 The United States Congress has provided a fast-track route to the U.S. Green Card for the applicants in order to promote economic growth. Under the Immigration Act of 1990, the EB-5 or EmploymentBased Immigration: Fifth Preference is meant to stimulate the U.S. economy through job creation and capital investment by Foreign Investors. All EB-5 investors must invest in a new commercial enterprise that was established: ● ●
After November 29, 1990; or On/ before November 29, 1990, that was: 1) Reconstructing or Reorganizing a Purchased or an existing business such that a new commercial enterprise results; 2) Or, expanding through investment such that there is at least a 40% increase in the number of employees or the net worth.
On July 24, 2019, United States Citizenship and Immigration Services (“USCIS”) published a final rule “EB-5 Immigrant Investor Program Modernization.”The final rule becomes effective on November 21, 2019.Changes that will happen in EB-5 under the final rule will include: Capital Investment Requirements A major change in the EB-5 visa policy is seen in the capital investment requirements with implementation from November 21, 2019. Here the capital means cash, equipment, inventory, cash equivalents, other tangible property and indebtedness secured by assets owned by the immigrant investors. The minimum investment amounts by filing date and investment location are: Petition Filing
Targeted Employment Area High-Employment Investment Amount Investment Amount
Before Nov 21, 2019
$500,000
$1,000,000
On/After Nov 21, 2019
$900,000
$1,800,000
Area
This is the first increase in these amounts since 1990. TEA Designation: The new regulations grant USCIS the authority to designate TEAs and remove all state involvement. TEAs will be limited to the immediate area around an EB-5 project, and will only allow for the addition of adjacent census tracts if: 1. The New Commercial Enterprise is located in more than one census tract; and 2. The weighted average of the unemployment rate for the tract or tracts is at least 150% of the national average. This will mean that projects that were formerly contained within areas that were designated as TEAs, may not be classified as TEAs under the new regulations. Retention of Priority Dates Some pending EB-5 petitions may need to be resubmitted.Therule offers greater flexibility to immigrant investors who have a previously approved EB-5 immigrant petition. When they need to