EB-5 in question: deadline for tougher new rules approaches; investment expected to decline; push in Congress for sweeter deal?
As I wrote in August, the Trump Administration, to some surprise, agreed to implement (with revisions) a major Obama Administration-proposed change in the EB-5 Immigrant Investor Program, which had granted visas to wealthy foreigners in exchange for a minimum $500,000 investment in a purportedly job-creating investment. The new rules, from U.S. Citizenship and Immigration Services (USCIS), which is part of the Department of Homeland Security, raise the minimum investment from $500,000 to $900,000 (but not $1.35 million, as originally proposed), as long as the project is in a Targeted Employment Area (TEA), which is a rural area or an area of high unemployment. The non-TEA investment, generally ignored in recent years, will rise from $1 million to $1.8 million. That catches up with inflation. TEAs have long been gamed--or gerrymandered--by states willing to designate a bizarrely shaped zone to qualify a project for the lower investment level. As the Real Deal reported 10/21/19, E