Note These Upcoming Changes to the EB-5 Visa

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If the commercial enterprise is new and geographically located within a designated regional center, the jobs created may be either direct or indirect. A direct job means that the employee is on the payroll of the company in question.  An indirect job is one created by virtue of the company’s presence in the region, such as work for a supplier of raw goods for the new company.

On the other hand, if the commercial enterprise is not located within a designated regional center, the jobs created must be direct jobs.

The government allots 10,000 EB-5 visas each year for eligible investors and the program has been successful. However, several rule changes are about to go into effect. Consider the following new guidelines before deciding whether to apply (or reapply if you already have an application in process) for an EB-5 visa.

1. It’s going to cost more

The minimum investment in order to participate in this program will rise from $1 million to $1.8 million. Additionally, if you are participating with the program in a TEA (targeted employment area) the minimum investment will increase to $900,000, up from $500,000.

Both of these changes are being made to account for inflation, and further bumps will also be tied to inflation. These decisions will be made after consideration of the Consumer Price Index for All Urban Consumers (CPI-U) during a scheduled review every 5 years.

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