Congress extended the EB-5 program
until September 30, 2019 with no changes BUT!!!
Did you know?
Congress extended the EB-5 program until September 30, 2019 with no changes BUT!!!
In this blog, we would like to talk about briefly the extension of the EB-5 program but also give an update on immigration related issues that have hit the market in the last few days.
Last month, after weeks of government shutdown, the program was extended until September 30, 2019 with no changes. But, the government and its various bodies such as Department of Homeland Security (DHS) and Office of Management and Budget (OMB) are trying to come up with their own rules. On February 22, 2019, USCIS forwarded the EB-5 Immigrant Investor Program Modernization final rule (RIN 1615-AC07) to the OMB. OMB will now begin assessment of the final rule produced by the agency via the review and comment period.
OMB is under no timetable for their review. That said, it is anticipated that the Final Rule will go in effect in a couple of months. These proposed new levels are not pretty. They are in fact extremely onerous. If after OMB review, the Final Rule is published in the Federal Register as is, then most likely many potential investors who are now staying on the sidelines will not be able to afford to invest as the numbers will be prohibitively high.
Let’s take a look:
1.Increase Investment Amounts:
The proposal in front of OMB now is to increase the Targeted Employment Area (TEA) investment amount from $ 500,000 to $ 1,350,000 and the non-TEA amount from $ 1,000,000 to $ 1,800,000. These are 170% and 80% increases respectively that will most likely kill the market!
2.Centralized TEA designations:
Currently, local governments who are intimately familiar with their regions have the authority to designate an area as TEA. This authority will be shifted to the Federal government exclusively. They will also change the methodology used to determine whether an area is TEA or not. Qualifications for TEA are going to get much more onerous. It is expected that areas that will continue to be classified as TEA will not be attractive for foreign investors and thus they will shy away from investing in EB-5.
3.Priority Date Protection:
Investors will be given priority date protection so that an investor with an approved I-526 will be able to choose to file a new I-526 while keeping his/her original priority date, subject to certain restrictions. This is a positive change since investors will be able to retain their priority date if there are circumstances beyond their control that will cause them to file a subsequent application. These circumstances could include the termination of a Regional Center or a material change in the business and business plan.
4.Spouse or children not on the original application:
Spouse and children may be able to file separate I-829 even if not included on the principal investor’s petition. If passed, dependents that were not included in the Principal applicant’s Form I-829 application will have the ability to file a separate application to remove the conditions on their permanent residency. This would apply for divorced spouses or estranged children.
So what is our recommendation? If you have the financial wherewithal and have already determined to invest in EB-5 for your or your families future do not wait any longer. There is no gain from waiting. Do not procrastinate! This could be your last chance; this could be the last call!! Potential investors who are serious about taking advantage of the EB-5 program should act now at the favorable terms before it is too late.
If you want to get more information about EB-5, please do not hesitate to call us at + 1 917 355 9251 or write to us at email@example.com.
Posted by americaeb5visa on March 12, 2019