I have received a lot of emails and also have spoken to prospective EB5 investors in the past month about the EB-5 program. Quite a few of them have a few common recurring questions, many more of you might have the same questions, below is a brief explanation of a few f your questions, if you have further questions, send me an email at info@eb5updates.com
WIll the investment limits really go up to $900,000 & $1.8 million (Non-TEA) after Nov 21 2019 ?
Yes they are going up, this is not a bill to be passed by Congress and signed by the President. This is a final rule published by the Department of Homeland Security, the agency that oversees USCIS. The final rule which has been published in July 2019 is effective Nov 21 2019.
What is the significance of the changes to the TEA criteria after Nov 21?
The change in TEA guidelines has much deeper implications for future investors and current alike. As quite a few of the projects which are in large cities currently with TEA status will not be eligible for TEA status after Nov 21. So basically, investments into these projects have to be made at $1.8 million, not the $900,000 level. This is a huge concern for the viability of an EB5 projects fund raise. For eg., lets say a project currently open for new investors has 40 slots, and if they manage to get 20 investors for $500,000 before the Nov 21st deadline, The remaining 20 investors need to invest a minimum of $1.8 Million as the project doesn’t comply with the new TEA guidelines after Nov 21. This can lead the project not to hit it’s fund raising target jeopardizing the investments of the previous 20 investors also. Read more about it in an article I wrote on Medium.com
Will I be able to invest a partial amount before Nov 21 2019 and fund the rest of the $500,000 after Nov 21 2019?
I have spoken with 3 different attorneys regarding the partial investment issue (Investor invests $250k and files EB5 Petition before Nov 21 and then invests the remaining $250k after Nov 21. While this was allowed previously, USCIS might say that you have to invest the entire $900,000 and not just $500,000 as you didn’t complete the requirements before Nov 21st. Or they might outright reject the investor’s EB5 petition.
If you have any questions, email us at info@eb5updates.com, we are happy to answer all your queries.
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