The EB5 Regional Center Program (EB5 RCP) has never really changed since its enactment in 1990 and was set at a minimum investment threshold of $500,000 for EB5 RCP and $1,000,000 for EB5 Direct Investments. Recent amendments will impact investments for existing and future investors. Tony Eschner, Director of Client Relations at Versfeld and Hugo Global Immigration Attorneys, explains:
In recent years, the EB5 industry and Congress identified a few changes that need to be included in new legislation. In November 2019, the Department of Homeland Security (DHS) changed the program through an Administrative Federal Rule-making process and increased the minimum investment threshold from $500,000 to $900,000 as promulgated under the EB-5 Modernization Final Rule.
In recent years, the EB5 industry and Congress identified a few changes that need to be included in new legislation. In November 2019, the Department of Homeland Security (DHS) changed the program through an Administrative Federal Rule-making process and increased the minimum investment threshold from $500,000 to $900,000 as promulgated under the EB-5 Modernization Final Rule.
On July 1, 2021, the EB5 RCP law lapsed, thereby putting the EB5 RCP on hold till reauthorization by Congress.
Current status
Congress passed the EB-5 Reform and Integrity Act of 2022 as part of the overall U.S. Omnibus Spending Bill. The EB-5 Reauthorization extends the EB-5 Regional Center program through September 30, 2027, with significant changes that will impact existing and future investors. The measure was signed into effect by President Biden on March 11th.
Key legislative changes
• For targeted employment areas the required investment amount will go up to $800,000, otherwise the investment amount will be $1,050,000.
• Concurrent adjustment of status filings are permitted with I-526 petitions.
• If the EB-5 program lapses in the future, grandfathering provisions direct USCIS to continue to process EB-5 petitions, as long as they are filed by September 30, 2026.
• The bill allocates 20% of total EB-5 visa numbers for investments in rural areas, 10% for investments in high unemployment areas, and 2% for investments in infrastructure projects.
• In some instances, the bill provides protection for dependent children aging out.
• If a regional center or new commercial enterprise (NCE) closes there is a mechanism for switching projects
• Pending investor immigrant petitions will not be subject to new restrictions and greater investment amounts.
• Adjudication investor immigrant petitions and adjustment of status applications will resume.
“The program’s reauthorisation provides enormous relief to those who have already filed, and we expect approvals within the coming months.”
For existing inquiries or prospective investors who would like to file new applications please contact EB5@versfeldlaw.com
