24 Jul New Regulations for EB-5: What Does That Mean For Investors?
Since the inception of the EB-5 program in 1990, there have not been changes made to the original investment amounts ($500,000 for a project in a TEA, and $1 million for a project in a non-TEA).
That is, until now. The highly anticipated new EB-5 Regulations were published this morning, July 24, 2019. You can view them here:
What does this change mean for anyone considering an EB-5 investment?
Effective November 21, 2019, the investment amount is scheduled to increase to $900,000 (for a TEA) or $1.8 million (for a non-TEA), with a change in what locations qualify for TEA status.
Projects must meet a more stringent test of being in a TEA, the detail of which is quite complicated to describe in this brief email. It is likely that most projects currently in a TEA will no longer be considered to be in a TEA after the effective date of the new regulations.
What should you do?
The rule is scheduled to become effective on November 21, 2019 (120 days from publication). Four months remain to file a petition under the current rules of the program. Any complete petition filed before November 21, 2019 will not be subject to the new rules and will be adjudicated according to the rules in effect today.
If you or someone you know has interest in EB-5, now is the time to seriously consider moving forward. While there will be no retroactive application of the new regulations, industry experts expect thousands of petitions to be filed in the next 4 months, which will create a bottleneck in the industry. Processing times will likely slow considerably and any green card backlogs due to retrogression will be exacerbated.
In other words, the difference between filing an I-526 petition in July/August 2019 vs September/October/November 2019 could mean years in the date upon which conditional permanent residency is secured.
AscendAmerica is here to help.
We are not the type of company that tries to influence our investors by putting pressure on them. And if you haven’t made a decision to move forward with EB-5 for your family, then this news shouldn’t necessarily be determinative. However, if you are seriously considering making an EB-5 investment, you may want to expedite your decision-making process
We will be scheduling many calls over the next month to explain the program and our current offering, 260 Kent, to help investors achieve their EB-5 investment before November 21, 2019. Please email us, call/text/WhatsApp to schedule an appointment: