The Office of Management and Budget (OMB) recently completed its review of the EB-5 Modernization Regulations, and it has issued proposed changes to the EB-5 investor visa program. The EB-5 investor visa program is directed towards foreign investors and their family members, offering a pathway to obtain lawful permanent residency in the U.S. The foreign investors must meet certain thresholds for investment in a U.S. venture, generate new jobs (or save jobs that are in danger of being eliminated), and stimulate the economic development. Approximately 10,000 EB-5 visas may be issued per year, due to laws enacted by Congress. The proposed changes from the OMB are as follows:
First, the Department of Homeland Security (DHS) would increase the minimum required investment in U.S. jobs from the current threshold of $1 million to $1.8 million. In regard to “targeted employment areas,” the threshold would increase from $500,000 to $1.35 million. Targeted employment areas are defined as rural areas and “high unemployment areas” in the United States.
Second, DHS is proposing to assume full authority over the designation of “high unemployment areas.” Previously, the individual State governments would designate these areas; however, the proposed change would shift that authority to the federal level. This has the potential to result in a change to areas that have previously been designated as high unemployment areas.
Third, the proposed changes would allow immigrant applicants/foreign investors to utilize their “priority date” for any subsequently filed petition that may be required of the applicant should they be required to reapply due to a failing investment project, termination of a regional center, or a backlog of visa applications. This change would avoid delays on the processing of immigrant visas associated with the loss of priority dates. Priority dates are assigned when an I-526 Petition has been approved.
As we await the publication of the rule in the Federal Register, we do not anticipate further major changes to the EB-5 program. Please note, the regulatory changes are expected to be enacted between 30 to 60 days of the final rule’s publication. As such, foreign investors who are potential EB-5 visa applicants should remain abreast of the regulatory changes and the impact the increased thresholds may have on their visa applications.
Speak Your Mind
You must be logged in to post a comment.