Changes to EB-5 Investment Minimums

Changes to EB-5 Investment Minimums

The Department of Homeland Security has issued a Notice of Proposed Rulemaking in regards to changes in the EB-5 visa program.

The proposal includes raising the minimum investment for both Targeted Employment Area (TEA) and non-TEA designated projects. The current values were set in 1990 at $500,000 and $1,000,000. To reflect inflation (using the Consumer Price Index for All Consumers), the investment levels will grow to $1,350,000 and $1,800,000, respectively.

This is expected to be finalized in April 2017.

What does this mean for A List Partners Regional Center?

We see this as a beneficial change to the program. It will likely decrease visa waiting periods as the pool of potential investors will be smaller. Additionally, with the same number of “jobs created” for a project, we can have a larger portion of the capital stack be financed with EB-5 capital. For example, a project in a TEA that creates 100 jobs (with a 30% buffer), used to allow seven EB-5 investors at $500,000 totaling $3,500,000. With the proposed changes, that number will soar to $9,450,000.

Source: The National Law Review

http://www.natlawreview.com/article/detailed-look-proposed-eb-5-regulations

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