The United States Northern District Court of California has reduced the EB-5 minimum investment to $500,000 and vacated the decision to increase the minimum EB-5 investment amount from $500,000 to $900,000.
The court said the U.S. Citizenship and Immigration Services (USCIS), Acting Director lacked the authority to issue that regulation.
Nevertheless, there are currently two new EB-5 bills, including regional centre reauthorisation circulating in the U.S. Senate, both contemplating a higher investment amount and this is expected to happen in September 2021.
This means that investors have between now and September 30, to secure their spot in an EB-5 project at the $500,000 investment level.
Although, everyone in the industry is unsure how long this ruling will remain effective, it is clear that for a short period of time, investors can invest $500,000 to become eligible for an EB-5 green card.
In 2019, the U.S. implemented changes in the EB-5 investor programme as part of a comprehensive EB-5 modernisation law passed by Congress.
The most notable change was the increase in the minimum investment amounts from $500,000 to $900,000 for Targeted Employment Area (TEA) investments and $1 million to $1.8 million for non-Targeted Employment Area (TEA) investments.
MEANWHILE, Houston EB5, through the years, has worked towards assisting international investors, especially Nigerians to gain permanent United States residency in return for making a qualified real estate investment.
Speaking at a press briefing, the Chief Executive Officer, 3Invest Limited, Ruth Obih, stated that the 2019 increase to $900,000 saw a drop in the level of investors.
She called for intending investors to key into the new opportunity. “Just like the US lottery, this may be a rare opportunity for families, who want to obtain a second passport through U.S. EB5 investment,” Obih said.
The new policy saw the statutory authorisation related to the EB-5 Immigrant Investor Regional Centre Programme expired at midnight on June 30, 2021, this lapse in authorisation does not affect EB-5 petitions filed by investors, who are not seeking a visa under the programme.
Obih explained that only EB5 investment and projects creating direct employment such as Moderno Forcelain Works, which is the latest project currently offered by Houston EB-5 will qualify for the EB-5 Visa.
She said: “Moderno Porcelain Works, is currently one of the few approved operational businesses in the EB-5 industry ready to process direct EB-5 investments in the U.S.
“Moderno Porcelain Works offer a more personalised investment opportunity and raises smaller capital to begin each project.
“Another attractive aspect of the new opportunity is that returns are paid yearly instead of being accrued,” says Azuike, the Managing Director, Houston EB5.
“Houston EB5 chose to offer an EB-5 Visa investment in Moderno for several strategic reasons including the ability to provide repeatably and predictable results,” he added.