Attorney Min Chan, Managing Director of the Chan Law Firm and Allison Berman, Managing Director and General Counsel of Greystone’s EB-5 bring you deep into the world of the EB-5 Program – an Immigrant Investor Visa Program which provides a method for eligible Immigrant Investors to become lawful permanent residents of the United States.
EB-5 can be a viable alternative as part of your Capital Stack that costs US taxpayers nothing, adds to Federal Tax Revenue and best of all – requires the creation of new jobs.
NEWS FLASH – The EB-5 rules that are administered by the U.S. Citizenship and Immigration Services (USCIS) changed between the recording and publishing of this episode. Included at the end of the episode is my follow up call with Allison Berman on 7/23/19 that describes these changes.
You will find them here in the below show notes as well.
To get in touch with Min or Allison:
Min Chan, Chan Law Firm
Allison Berman, Greystone
As always Bill, the host/producer of Realty Speak® and Investment Real Estate Broker is ready to be a resource to you when you sell or purchase investment real estate or help you navigate while you own.
Ways to connect with Bill:
Email Bill at firstname.lastname@example.org
call/text at 917-232-8529.
Visit Bill’s website www.billweidner.com
Major changes to EB-5 in the final rule include:
Raising minimum investment amounts: As of the effective date of the final rule, the standard minimum investment level will increase from $1 million to $1.8 million, the first increase since 1990, to account for inflation. The rule also keeps the 50% minimum investment differential between a TEA and a non-TEA, thereby increasing the minimum investment amount in a TEA from $500,000 to $900,000. The final rule also provides that the minimum investment amounts will automatically adjust for inflation every five years.
TEA designation reforms: The final rule outlines changes to the EB-5 program to address gerrymandering of high-unemployment areas (which means deliberately manipulating the boundaries of an electoral constituency). Gerrymandering of such areas was typically accomplished by combining a series of census tracts to link a prosperous project location to a distressed community to obtain the qualifying average unemployment rate. As of the effective date of the final rule, DHS will eliminate a state’s ability to designate certain geographic and political subdivisions as high-unemployment areas; instead, DHS would make such designations directly based on revised requirements in the regulation limiting the composition of census tract-based TEAs. These revisions will help ensure TEA designations are done fairly and consistently, and more closely adhere to congressional intent to direct investment to areas most in need.
Clarifying USCIS procedures for removing conditions on permanent residence: The rule revises regulations to make clear that certain derivative 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. The rule improves the adjudication process for removing conditions by providing flexibility in interview locations and to adopt the current USCIS process for issuing Green Cards.
Allowing EB-5 petitioners to keep their priority date: The final rule also 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 generally now will be able to retain the priority date of the previously approved petition, subject to certain exceptions.