New EB-5 regulations will be effective on Nov. 21, 2019. Baker Tilly will provide additional details as guidance is communicated, however here is an overview:
New investment amounts: The minimum investment increases to $900,000 for Targeted Employment Area (TEA) investments and to $1,800,000 for non-TEAs. New changes in TEA eligibility criteria will make it extremely difficult for most current projects to qualify for TEA.
Modified TEA designations: TEA determinations will be set by USCIS and are more restrictive in their definition. A single tract may only be combined with directly adjacent tracts to derive the weighted average unemployment rate required to exceed the 150% threshold. Cities and towns outside of a Metropolitan Statistical Area (MSA) and with population over 20,000 may be designated by DHS as eligible for TEA.
New rules for priority date retention: Petitioners who already have approved I-526 petitions are allowed to retain their priority dates if they need to file a new I-526 petition due to circumstances out of their control, such as Regional Center termination. Also, the new rules disallow gifting or transferring an investor’s priority date to derivative beneficiaries.
I-829 flexibility: Derivative family members must file their own petitions at the I-829 stage if they are not included in the investor’s own I-829 petition.
Effective date: The final rule will be effective on Nov. 21, 2019, which is 120 days from the date of publication in the Federal Register on July 24, 2019. Only I-526 petitions received by USCIS prior to Nov. 21 will lock in the current rules.
We anticipate a significant rush of investors and projects that wish to file prior to the Nov. 21, 2019 deadline. To ensure all cases are properly submitted, please contact us immediately to begin working on your case.
For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.