Bond Real Estate
- Congress created the EB-5 Program in 1990 in order to stimulate the U.S economy through job creation and capital investment by foreign investors;
- Initially, it was created as a direct investment vehicle whereby foreign nationals that is the EB-5 investors, would invest $ 1 million in a project of their own or if the project were in a rural jurisdiction or in an area that experienced high unemployment then the required investment would be half of that at $ 500,000. This kind of area is called Targeted Employment Area, commonly known as TEA.
- In November, 21, 2019 the amounts were increased to $900,000 for TEA and $1.8 million for non-TEA EB-5 projects. On June 22, 2021, a lawsuit challenging these new EB-5 regulations was successful, as Magistrate Judge Jacqueline Scott Corley of the U.S. District Court for the Northern District of California ruled that the regulations were not lawfully promulgated because then-acting Department of Homeland Security (DHS) secretary Kevin McAleenan was not properly serving in his position. So, we are back to $ 500,000 investment amount now but the program lapsed on June 30th. We expect the program to open up again in September and stay open for at least a couple of weeks. Potential investors who could get ready now with their paperwork will most likely be able to lock-in this historically low, reduced amount of $ 500,000. We will talk more about this later on in our session.