I read online that the deadline to file for EB5 at the $500,000 investment level is June 30, 2021. Is that correct?24 Jun 2021
No, that is not correct. There are two major issues surrounding the EB5 program right now, but they are not directly related to one another. First, there is the looming deadline of the regional center program expiring on June 30, 2021. The regional center program has been renewed repeatedly for nearly three decades. The hope is that Congress will renew the program once again, and possibly even make the regional center program permanent.
The second issue is a court ruling earlier this week that set aside the November 2019 EB5 regulation. This regulation raised the minimum investment requirement from $500,000 to $900,000 for investments made in a targeted employment area (TEA). Because the November 2019 regulation was set aside, the minimum investment required is once again $500,000 as of the date of the court ruling. There is no set deadline to take advantage of the $500,000 minimum investment amount. The U.S. Department of Homeland Security (DHS) or Congress could take actions to reinstitute the $900,000 investment requirement. That could be done within a matter of days or weeks. For instance, it could be that Congress renews the regional center program, and includes a provision to increase the investment requirements after June 30th. Or, it’s possible the $500,000 investment requirement could be left as-is indefinitely
Some foreign nationals are racing to invest in a regional center before the program’s scheduled expiration date of June 30th. But, this does not necessarily provide any protection. As things currently stand, if the regional center program expires, any I-526 filed through a regional center that is still pending would likely be denied. It is possible Congress could allow the regional center program to expire, but take some action to protect those with pending cases. But, for the time being, there is no indication that such action is forthcoming.
Ultimately, the hope is that Congress will renew the regional center program, as it has done so many times before. And, even if the DHS or Congress intends on bringing back the $900,000 minimum investment requirement, it would be prudent to give advance notice so that foreign nationals would have adequate time to still invest at the $500,000 level. (24.Jun.2021)
Copyright © 2021, MURTHY LAW FIRM. All Rights Reserved