Since that time, rampant and abusive gerrymandering of the EB-5 programs
targeted employment areas has undermined congressional intent.
"The changes will raise the investment amount, change the way
targeted employment areas are calculated and essentially make the program harder to participate in than it already is," said Sam Newbold, an EB-5 specialist at the law firm Chiesa, Shahinian & Giantomasi.
For example, some complain that savvy developers are gaming the system by connecting higher-end developments with lower-end housing projects in order to qualify projects in major cities as
targeted employment areas (TEAs).
The qualifying minimum investment generally is $1 million; however, an investment of $500,000 may qualify for investments within certain high-unemployment or rural areas, also known as
targeted employment areas.
Many of these credits are based on
targeted employment areas. The boundaries of these areas tend to change over time as census data is accumulated and qualification requirements get modified.
She added that she expects there will be changes in the way
targeted employment areas are looked at.
The US Citizenship and Immigration Service sets aside 10,000 visas for immigrants investing $500,000 or more in
Targeted Employment Areas (TEA) to create new jobs in American businesses and enhance the economy.
The minimum investment amounts would be raised to $800,000 for investments in
targeted employment areas and $1.2 million for investments in non-TEAs (presently $500,000 and $1 million, respectively).
