On Friday, June 28, the White House’s Office of Management and Budget posted that they have concluded their review of the draft EB-5 regulations. This action follows the Department of Homeland Security earlier this year publishing a proposal to more than double investment levels and other programmatic changes to the EB-5 program. This means that the new EB-5 regulatory rule is to be published as a “final rule.” (Click here to see the official announcement.)
The actual language of the review has not been released, however. Therefore, it is unclear exactly what the publication of this rule means for the EB-5 program moving forward and potential EB-5 investors. But based on information from our network of EB-5 advocates and allies in Washington, D.C., we believe the risk has increased that the draft rule will be published and become regulatory policy. For prospective investors weighing an EB-5 investment under current rules, it is important to recognize that the reviewed rule raised the minimum investment amount from $500,000 to over $1 million.
Again, we strongly believe there is great risk for the mandatory EB-5 investment minimum to more than double. If you are ready to make an investment, now is the time.
We will update you once we have clarity around the results and likely outcomes of this action.
Daniel J. Healy
CEO, Civitas Capital Group