NEW REGULATIONS FOR THE EB-5 INVESTOR VISA PROGRAM WERE PUBLISHED IN THE FEDERAL REGISTER AND WILL TAKE EFFECT NOVEMBER 21, 2019
Today the Department of Homeland Security’s (“DHS”) EB-5 Modernization Regulations were published on the Federal Register’s website, which is the first time there has been significant change in the EB-5 Investor Visa Program since 1993 (Federal Register Link).
The new regulations state the effective date for these changes is November 21, 2019. The regulations clarify that anyone that files their I-526 petition prior to November 21st will be adjudicated under the current rules of the program. However, it is important to keep in mind that even with the published new regulations, the EB-5 regional center program must continue to be reauthorized by Congress, and currently is only authorized until September 30, 2019. Although there are many technical changes in the new regulations, there are a couple major changes to make note of:
- An increase of the minimum investment amounts
- New TEA rules (the USCIS will now be responsible for approving)
NEW DOLLAR AMOUNT:
- The minimum investment amount will increase significantly from $500,000 to $900,000 in a qualified targeted employment area (“TEA”)
- Investment amounts in a non-TEA increase from $1 million to $1.8 million
- The regulations also include provisions that the investment amounts will be adjusted every five years based on inflation.
NEW TEA DESIGNATIONS:
- DHS will make TEA designations directly now (taking them away from the individual States)
- DHS will approve census tract-based TEAs, based on new configuration rules, which will eliminate gerrymandering and will provide consistency