In November 2019, the minimum EB5 investment amounts increased from $1 million to $1.8 million and $500,000 to $900,000, with the latter amounts applying to investments in projects located in targeted unemployment areas (TEAs). This increase was due to the EB-5 Modernization Rule that was signed into law, and marked the first time EB-5 visa minimum investment amounts had been increased since the inception of the program. The change accounted for inflation.
The Modernization Rule did not last long, however, with its implementation followed by repeal about seven months later on June 22, 2021. Naturally, all changes brought with it were rescinded upon its repeal, lowering EB5 investment thresholds back to their previous levels of $1 million and $500,000.
On March 15, 2022, the EB5 Reform and Integrity Act was signed into law as part of the Consolidated Appropriations Act. Among the major changes brought with it was a revision to the minimum EB5 investment thresholds; the investment amounts were raised to their current levels of $800,000 for projects within TEAs and $1,050,000 for investments outside of TEAs.
The main purpose of the EB-5 program is to drive economic growth through job creation from foreign direct investment. This is especially important in rural areas and areas with high unemployment rates—or TEAs. Consequently, the minimum investment amount for projects in TEAs remained significantly lower after the 2019 Modernization Rule and EB5 Reform Act of 2022 to encourage EB-5 investors to channel their funds into the areas that will benefit most from EB-5 investment.
Beginning January 2027 and every five years thereafter, the minimum EB-5 investment thresholds will be adjusted to account for inflation. The amount for standard investments will be adjusted according to the Consumer Price Index, and the minimum investment amount for TEA projects will be adjusted to 60% of the standard investment minimum.