Is it true that the minimum EB-5 investment amount may increase from $500,000 to $800,000? If this is true, when would it be decided? When would it be implemented?
Only with an Act of Congress can the EB-5 investment requirement be increased. Also, the minimum investment will be in a TEA and Congress may change the definition of a TEA. It is still uncertain when and if Congress will make these changes.
It is really impossible to predict. Even if new EB-5 laws are passed before the Sept. 30 deadline, there may be a separate implementation date for the new laws to take effect. The only thing we know for sure is that filing now, before Sept. 30, will be based on the current laws in place.
Good question! And unfortunately no one can answer it. There has been some rumbling about the amounts changing, but to date no action has been taken.
There are lots of rumors of possible changes before Sept. 30, 2016, when the current EB-5 program is up for renewal. No one knows if the minimum investment will go up, or when. It is an election year, so all bets on the U.S. congress agreeing to anything in September, other than a basic extension, are off the table.
As of now, the minimum investment amount is either $500,000 if you are in a Targeted Employment Area or $1 million if not.
It is true that we firmly believe that it will be increased. When, how, and to what amount are questions that cannot be exactly answered. Last year around this time of the year, the U.S. Congress introduced legislation that would increase the minimum investment amount in a Targeted Employment Area (TEA) from $500,000 to $800,000. That legislation did not pass, and Congress did not increase the minimum investment amount. However, USCIS (which administers the EB-5 program) hinted that it may increase the minimum amount itself. Should they choose to do so - and they have the power to do so under the current law - they would have to propose new regulations to increase the amount. And if they do, we should have at least 60 days' notice before that type of rule change takes effect. Further, in spite of all of this, we still expect that the U.S. Congress might be the first to increase the amount. In my opinion, an increase to $800,000 seems mathematically correct. Since the $500,000 amount was established in the 1990s, if you look at the rate of inflation since then, the increase could be well over $800,000. But we do not think Congress will go above that amount - at least for TEA areas. Bottom line, if you are considering making an EB-5 investment, file as soon as possible within the next 60 days.
The issue has been debated at length, but it remains on the drawing board. No definitive date has been set for its implementation. In fact, judging by the political forces arrayed against the proposal, eventually it may not become the law of the land.
No one knows for sure. My guess is it will happen before the end of the year based on regulatory changes. However, I was sure it would happen last year, and it did not.
The minimum EB-5 investment is set by the U.S. Congress. Many U.S. congresspersons and senators have agreed that the minimum investment should be raised, but no law has been passed to implement that change. The regional center program will be reviewed by the U.S. Congress in Sept. 2016. At that time, the minimum investment of $500,000 may be increased, eliminated or remain unchanged.
It is likely that the minimum EB-5 investment amount will increase from $500,000. It is too early to determine the exact amount. $800,000 was the amount included in the last legislative effort to increase the dollar amount as of Dec. 2014 in Senate Bill 1501. It is almost certain that there will be change in the EB-5 regional center legislation since it will be necessary to obtain an extension of the program by Sept. 30, 2016. It is somewhat likely that there will be a temporary extension through Dec. or even March 2017, but when the program is reauthorized there is a highly probability that there will be both an increase in the minimum dollar amount to as high as $800,000 or possibly $700,000, and there will also be a reduction in the number of projects that will qualify for the lower dollar amount based upon the fact that they are located in a Targeted Economic Area (TEA). I-526 petitions filed prior to enactment may be "grandfathered" under the current legislation.
Probably not until the middle of next year.
The current proposals suggest the minimum investment amount will increase to $800,000. This will likely take place in September, but is subject to Congressional timing.
