Civitas’ No. 1 priority is the health and safety of our employees. Acting on advice from health experts, Civitas begins its “social distancing program” on Monday, March 16 — the date Civitas employees will work from home until further notice. Business operations will continue as normal, with employees available via business email addresses and phone numbers. We apologize if this new protocol affects our response time. As well, Civitas is not accepting visitors to its offices until further notice. If you currently have a scheduled office appointment, please reach out to your Civitas contact. Thank you for your patience and understanding. We will continue to provide updates as warranted.
EB-5 Minimum Investment Amount Has Increased to $900,000
As expected, the Department of Homeland Security this morning published a new EB-5 regulation known as a “final rule.” (Click here to see the regulation.) While we are still reviewing the contents, here are some key changes:
1. Increasing investment amounts – $900,000 for Targeted Employment Area (TEA) / $1.8MM for non-TEA:
- The final rule keeps the 50% minimum investment differential between a TEA and a non-TEA and provides that the minimum investment amounts will automatically adjust for inflation every five years.
2. Revising the standards for certain TEA designations:
- The final rule addresses gerrymandering — deliberately manipulating the boundaries of an electoral constituency to link a prosperous project location to a distressed community to obtain the qualifying average unemployment rate.
3. Clarifying USCIS procedures for removing conditions on permanent residence:
- The final rule makes clear that certain family members who are lawful permanent residents must independently file to remove conditions on their permanent residence. The requirement would not apply to those family members who were included in a principal investor’s petition to remove conditions.
4. Allowing EB-5 petitioners to keep their priority date:
- The final rule offers greater flexibility to immigrant investors who have a previously approved EB-5 immigrant petition. When they need to file a new EB-5 petition they now will be able to retain the priority date of the previously approved petition, subject to certain expectations.
This new rule will go into effect November 21, 2019. You have approximately 120 days to get in at the $500,000 level. This will be the new standard for the EB-5 program going forward barring legislative action. Based on our conversations with our advocates and allies in Washington, D.C., we expected this to become regulatory policy and prepared ourselves for such. For prospective investors weighing an EB-5 investment under current rules, you have a limited window in which to act.
Please don’t hesitate to reach out to us if you need further clarification on how this might affect you.
Daniel J. Healy
CEO, Civitas Capital Group