The EB-5 investment program requires foreign investors to invest a minimum amount in a U.S. business to obtain permanent residency. However, determining the eb5 minimum investment amount can be complicated, as it depends on several factors. This article will examine the key elements that decide the eb5 minimum investment in 2023.
EB-5 investment in Targeted Employment Areas
The eb5 minimum investment is lower for projects located in Targeted Employment Areas (TEAs). TEAs are rural areas or regions with high unemployment rates. For EB-5 investments in TEAs, the minimum required is $500,000. However, defining TEAs has been controversial, with gerrymandering concerns. The EB-5 Reform and Integrity Act of 2022 tightens TEA requirements, so fewer projects may qualify for the $500,000 eb5 minimum investment.
EB-5 investment in non-Targeted Employment Areas
For EB-5 investments in projects located outside Targeted Employment Areas, the eb5 minimum investment amount is higher. Previously this was $1 million. However, the 2022 reform raised the minimum to $1.05 million, adjusted for inflation. So in 2023, the eb5 minimum investment in non-TEAs is $1.1 million.
EB-5 investment timeline
The EB-5 Reform and Integrity Act 2022 reduced the eb5 minimum investment period to 2 years for new investors post-enactment. Previously, investors had to maintain their EB-5 investment amount until receiving permanent residency, which often took over 5 years. The 2-year sustainment period significantly reduces reinvestment risk.
Grandfathering for prior investors
The new 2-year eb5 minimum investment period only applies to investors filing I-526 petitions after November 21, 2022. Investors who filed before are grandfathered under previous rules, so must maintain their EB-5 investment amount for the longer period until obtaining permanent residency.
In summary, the eb5 minimum investment in 2023 depends on project location, with lower $500,000 requirements for TEAs, and higher $1.1 million requirements for non-TEAs. The 2022 reform also reduced sustainment periods to 2 years for new investors, significantly reducing reinvestment risk.