Question:

$500,000 in a Targeted Employment or Rural Area, $1,000,000 otherwise.

The minimum amount of capital required to apply for an EB-5 visa depends on what type project one wishes to invest in. For a new business enterprise one must invest or be in the process of investing at least $1,000,000. If the investment is in a designated targeted employment area then the minimum investment requirement is $500,000. Targeted employment area is defined by law as “a rural area or an area that has experienced high unemployment of at least 150 percent of the national average” INA §203(b)(5)(B). The same investment requirements of the new commercial enterprise investment apply to a troubled business investment ($1,000,000 or $500,000 in a targeted employment area).

The actual minimum amount is one-million dollars. It is possible to have that amount cut in half. The reduced amount is only for projects in a Targeted Employment Area (TEA). A TEA is defined by statute and further clarified by regulations.

The minimum amount based on an investment in a project in a TEA may be locked in for the individual investor as follows. Either at time of actual investment (handing over the money) or upon filing the I-526, whichever happens last. Many Regional Centers utilize an OPTIONAL "escrow arrangement". Such escrow arrangements are NOT REQUIRED under the law. Escrow may be useful in certain circumstances. One use is to show that the money is "committed to the project" when the I-526 is filed and thereby lock in the TEA amount. Escrowed funds are generally only released when the I-526 is approved. If denied the money is generally returned and the alien investor drops out or is kicked out of the investment group. (One person's unlawful funds will disqualify ALL investors from EB-5! However, a person with insufficient funds can add more and re-apply with a new I-526 later.)

A project begun in a TEA may lose out if the area ceases to be classifiable as a TEA. The TEA designation based on a high unemployment rate (IF determined by the State) is usually determined on an annual basis. If the "new unemployment figures" are due to change again in May and it is likely that the TEA will no longer be a TEA, file before the change is due. This can lock in the TEA investment amount for those who file in time, it does NOT lock in the TEA designation for the life of the project and does not allow future aliens to join in later at the lower threshold amount if the area is NOT a TEA when they make their investment.

This is important if one is relying on the State's designation process which is NOT mandatory. In the alternative, one can search for other reliable sources of data for non-standard areas in which the actual project will take place. That alternative is dangerous as it will be deeply scrutinized for validity and will require hiring someone to make a solid case for it. In addition, USCIS has a real problem with "gerrymandering" and
frankly so should everyone else.

In short, the minimum amount of investment is often reliant on "timing" of the key action of either actual investment or filing the I-526.