On March 15, 2022, the EB5 Reform and Integrity Act was signed into law, which introduced significant reforms to the industry. Among the major changes was a revision to the minimum EB5 investment thresholds; the investment amounts were changed to their current levels of $800,000 for projects within targeted employment areas (TEAs) and $1,050,000 for investments outside of TEAs.
The EB-5 investment minimum has been adjusted multiple times throughout the EB5 program’s history. The program was created by Congress in 1990, with the Immigrant Investor Pilot Program — which established EB5 regional centers — introduced shortly after in 1992. The original minimum investment thresholds were $1,000,000 for standard investments and $500,000 for TEA projects. These amounts remained in place until the implementation of the Modernization Rule of 2019, which introduced several controversial changes to the EB5 program; the most notable of these being the 80% hike in minimum investment thresholds. The minimum amount for standard projects went from $1,000,000 to $1,800,000 overnight. For TEA investments, the minimum threshold jumped from $500,000 to $900,000.
The Modernization Rule did not last long, however, with its implementation on November 19, 2019 followed by repeal about seven months later on June 22, 2021. Naturally, all changes brought with it were rescinded upon its repeal, dropping the minimum investment thresholds back to their pre-Rule levels.
As mentioned above, the EB5 Reform and Integrity Act brought the minimum investment amounts to their current levels in March of 2022. Moreover, beginning January 2027 and every five years thereafter, the minimum investment thresholds will be adjusted to account for inflation. The amount for standard investments will be subject to changes according to the Consumer Price Index, and the minimum investment amount for TEA projects will be adjusted to 60% of the standard investment minimum.