Given all the turmoil with the new executive orders from the new administration in 2017 — along with the rumors of unsigned executive orders and proposed bills floating around — we’ve been trying to wait for some of the dust to settle before commenting on any of the substantive changes.
There is however, a proposed rule, which will change some aspects of the EB-5 Investment Immigrant Visa, some significantly.
Entitled, “EB-5 Immigrant Investor Program Modernization” — the main points are:
- The minimum investment amount in a Targeted Employment Area will increase from $500,000 USD to $1.35 million USD.
- All other areas will increase the investment amount from $1 million USD to $1.8 million USD.
- The ability to designate Targeted Employment Areas will be taken away from the individual state and be given to the Department of Homeland Security.
The proposals are significant, raising the capital amount to 80%. This will affect the EB-5 market in the United States.
These are proposed rule changes, so unlike other rumors of unsigned executive orders and proposed legislation that have little chance of passing (the proposed bill to abolish the EB-5 visa altogether), so they will most likely go into effect.
The comment period for the proposed rules above ends April 11, 2017. At which point, USCIS can propose amended rules OR publish the final rule at any point afterwards. Then the rules go into effect in 30 days. So the earliest the changes can take place are May 11, 2017, although realistically speaking it will be sometime afterward.
Keep in mind that this separate from the EB-5 Regional Center program expiration which is set for April 28, 2017. A lot of things happening in April — it is the cruelest month.
For those who are interested, the full body of the proposed rule changes are on the official government website, the Federal Register.
News of these changes have hit the mainstream financial press: