Many are quite concerned of the impact of the Department of Homeland Security’s changes to the EB-5 Investor Immigration Visa program. Fortunately, now that they have been finalized expert Gregory Finkelson of ACS, Inc. has broken down the changes in a way that’s direct and easy to understand.
The Department of Homeland Security (DHS) has issued its Final Rule concerning the EB-5 Investor Immigration Visa program. The rule was entered into the Federal Register on July 24. These are the first significant changes to the EB-5 Visa program since 1993. The changes will take effect on November 21, 2019. Expert in the area, Gregory Finkelson of American Corporate Services, Inc., is pleased to have prepared a five-point summary of the most significant changes within the 239-page Final Rule as an aide to both clients of ACS, Inc., potential clients, and others who may find the information valuable.
“Changing the EB-5 after over 20-years has left many wondering what to expect,” commented Finkelson. “I am happy to be able to help after having had the chance to go over the DHS documents.”
Finkelson feels the five most important changes to the EB-5 Investor Immigration Visa program coming into affect are the following:
|First, the Standard Investment amount will be increased from USD 1 million to USD 1.8 million. The Standard Investment will be automatically adjusted for inflation every five years.|
|Secondly, the Minimum Investment amount will be permanently set at one-half the Standard Investment. The Minimum Investment will change every five years but will always be one-half of the Standard Investment. The current Minimum Investment is USD 500,000. As of November 21st, the minimum will increase to USD 900,000.|
|Third, the DHS will assume sole responsibility for the creation of Targeted Employment Areas. Because individual states and their economic development departments previously had this responsibility, the rules for TEA creation were, in some instances, loosely applied. The DHS expects to more strictly adhere to the initial definition of and intent for TEAs. Projects within TEAs require only the Minimum Investment. Investors should expect to see fewer opportunities for investing the minimum once the DHS begins to control TEAs on November 21st.|
|The fourth important change is some pending EB-5 petitions may need to be resubmitted. For instance, this might occur where the original application was linked to a project associated with a Regional Center that has closed.Generally, petitioners who must refile will be allowed to retain their original priority date so as not to lose their place in the processing queue.|
|The fifth change identified by Finkelson is only family members (limited to spouse and unmarried minor children) who were included in the investor's initial petition will be considered for removal of conditions along with the petitioner. Derivative family members will be required to file their own, individual petitions for removal of conditions.|
Finally, it is possible, failing passage of a spending bill before September 30, that the EB-5 program could be temporarily suspended during October. It is too soon to project what might happen, although ACS LO believe that the government is likely to take measures to bridge the gap from the time the current program sunsets and the new rules take effect.
ACS Law Offices, recommends that potential investors take heed to the changes and their timing to determine what actions are in their best interest to take. As always, ACS Law Offices, is happy to offer a free consultation to review individual EB-5 cases.
About ACS Law Offices
ACS Law Offices is an established law firm with headquarters in San Francisco, California and branches in Delaware, Nevada, Oregon, Washington and Florida and representative offices in several regions of Eastern Europe and China. ACS LO has already provided services to over 7,000 clients and our business continues to grow.
Rinata Likhanova, Director of Development