Major Changes to EB-5 Regulations
by Foster LLP, on Immigration Updates
The Office of Management and Budget (OMB) completed their review of the proposed EB-5 regulations this past Thursday, June 27th. As the OMB Review concluded the final step in the agency rulemaking process, USCIS can now publish the new regulations at any time in the Federal Register as Final Regulations.
The Final Regulations once published are likely to substantially increase the minimum investment amounts, and change the Targeted Economic Area (TEA) definition. The proposed regulations would have raised the minimum $1 million investment amount to $1.8 million, and for TEA projects from $500,000 to $1.3 million.
While both OMB and USCIS would have almost certainly made changes to the proposed regulations, and OMB may have lowered the minimum investment amounts from the proposed amounts somewhat prior to sending it to USCIS, in fact, no one knows for sure the extent of any changes. In any event, it is anticipated that the Final Regulations will substantially increase the minimum investment amounts and narrow the TEA definitions.
Once the Final Regulations have been published, we anticipate there will be a grace period provided in the published rule, which could be anywhere from a matter of weeks, to a few months, or to the end of the fiscal year. However, given considerable tensions over the lack of legislation, and the length of time it took to finalize regulations, there’s no guaranty that the grace period will be for a generous period of time.
Thus, it’s incumbent for all of us to notify our new and prospective clients, and to provide all necessary resources to file their EB-5 Investor Petitions as soon as possible, in order to minimize the possibility that they will no longer be able to invest at the $500,000 level. Any I-526 Petitions filed before the effective date of the Final Regulations will be adjudicated under current regulations.
We will immediately advise you as soon as the Final Regulations have been published, and pertinent details of same.
For more information, please do not hesitate to contact us at firstname.lastname@example.org or call 713.229.8733 for more information.