On July 24, 2019, new EB-5 Immigrant Investor regulations were published in Federal Register.
The final rule will become effective on November, 21, 2019.
Major changes to EB-5 in the final rule include:
Raising minimum investment amounts: the standard minimum investment level will increase from $1 million to $1.8 million, the first increase since 1990, to account for inflation.
The rule also keeps the 50% minimum investment differential between a TEA and a non-TEA, thereby increasing the minimum investment amount in a TEA from $500,000 to $900,000. The final rule also provides that the minimum investment amounts will automatically adjust for inflation every five years.
The final rule outlines changes to the EB-5 program to address gerrymandering of high-unemployment areas (which means deliberately manipulating the boundaries of an electoral constituency). As of the effective date of the final rule, DHS will eliminate a state’s ability to designate certain geographic and political subdivisions as high-unemployment areas; instead, DHS would make such designations directly based on revised requirements in the regulation limiting the composition of census tract-based TEAs. These revisions will help ensure TEA designations are done fairly and consistently, and more closely adhere to congressional intent to direct investment to areas most in need.
Clarifying USCIS procedures for removing conditions on permanent residence: The rule revises regulations to make clear that certain derivative family members who are lawful permanent residents must independently file to remove conditions on their permanent residence. The requirement would not apply to those family members who were included in a principal investor’s petition to remove conditions. The rule improves the adjudication process for removing conditions by providing flexibility in interview locations and to adopt the current USCIS process for issuing Green Cards.
Allowing EB-5 petitioners to keep their priority date: The final rule also offers greater flexibility to immigrant investors who have a previously approved EB-5 immigrant petition. When they need to file a new EB-5 petition, they generally now will be able to retain the priority date of the previously approved petition, subject to certain exceptions.
Once an investor has obtained an immigrant visa through an I-526 petition and become a conditional resident, he or she can no longer use the priority date of that I-526 petition if he or she files a new I-526 petition. The regulations only offer protection to investors whose I-526 petitions have been approved, and who have not yet obtained conditional residence.
The regulations will be in effect and apply to all I-526 petitions filed on or after November 21, 2019. Any petition filed before that date will be subject to the current rules.
Read more here.
The final rule will become effective on November, 21, 2019.
Major changes to EB-5 in the final rule include:
Raising minimum investment amounts: the standard minimum investment level will increase from $1 million to $1.8 million, the first increase since 1990, to account for inflation.
The rule also keeps the 50% minimum investment differential between a TEA and a non-TEA, thereby increasing the minimum investment amount in a TEA from $500,000 to $900,000. The final rule also provides that the minimum investment amounts will automatically adjust for inflation every five years.
The final rule outlines changes to the EB-5 program to address gerrymandering of high-unemployment areas (which means deliberately manipulating the boundaries of an electoral constituency). As of the effective date of the final rule, DHS will eliminate a state’s ability to designate certain geographic and political subdivisions as high-unemployment areas; instead, DHS would make such designations directly based on revised requirements in the regulation limiting the composition of census tract-based TEAs. These revisions will help ensure TEA designations are done fairly and consistently, and more closely adhere to congressional intent to direct investment to areas most in need.
Clarifying USCIS procedures for removing conditions on permanent residence: The rule revises regulations to make clear that certain derivative family members who are lawful permanent residents must independently file to remove conditions on their permanent residence. The requirement would not apply to those family members who were included in a principal investor’s petition to remove conditions. The rule improves the adjudication process for removing conditions by providing flexibility in interview locations and to adopt the current USCIS process for issuing Green Cards.
Allowing EB-5 petitioners to keep their priority date: The final rule also offers greater flexibility to immigrant investors who have a previously approved EB-5 immigrant petition. When they need to file a new EB-5 petition, they generally now will be able to retain the priority date of the previously approved petition, subject to certain exceptions.
Once an investor has obtained an immigrant visa through an I-526 petition and become a conditional resident, he or she can no longer use the priority date of that I-526 petition if he or she files a new I-526 petition. The regulations only offer protection to investors whose I-526 petitions have been approved, and who have not yet obtained conditional residence.
The regulations will be in effect and apply to all I-526 petitions filed on or after November 21, 2019. Any petition filed before that date will be subject to the current rules.
Read more here.
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