Thus, for instance, the next inflation adjustment will be based on the initial minimum investment amount of $1,000,000 in 1990, rather than this rule’s minimum investment amount of $1,800,000, which is a rounded figure. This change better implements the intent of the proposed rule; it ensures that future inflation adjustments more accurately track inflation since 1990, rather than being based on rounded figures. 4. Implementation of the Increase in Investment Amount Comments: Multiple commenters provided suggestions on how to implement the increase in the minimum investment amounts, with most of these commenters advocating a phased-in approach. One commenter suggested a transition period to ensure the minimum investment amount catches up to the ideal minimum investment amount 50 Christiansen, Hans, Checklist for Foreign Direct Investment Incentive Policies , Investment and Services Division, OECD Committee on International Investment and Multinational Enterprises (CIME) OECD, 2003, available at .
68 without drying up access to capital. Other commenters recommended an incremental approach because the market responds better to smaller increases over time rather than a single increase, and it would also minimize disruptions in EB-5 program activity. Several commenters encouraged DHS to implement a reasonable, stepped increase over the next 5 years. Response: DHS considered phasing in the minimum investment amount over the next five years, including increasing the amount every year or every other year. However, DHS believes constantly changing amounts would present challenges to the EB-5 market, in that continual, frequent increases would commonly require different investment amounts for different petitioners within the same investment project over a period of time. Such differences would require frequent adjustments to offering documents that could overly complicate adjudications and place burdens on the EB-5 market, including EB-5 petitioners. Most importantly, a phased-in approach or transition period means the minimum investment amount would not fully account for the change in inflation for another five years. DHS believes it is important to take steps to revise the program by making the adjustment now rather than continuing to delay the impact of the inflation-adjusted increase. 5. Increase to the TEA Minimum Investment Amount Comments: Some commenters expressed support for the proposed increase to the TEA minimum investment amount from $500,000 to $1.35 million. A commenter stated that the demand for EB-5 visas is high and the program is oversubscribed, and a higher minimum investment per visa will “increase the overall funding flow and relieve some of the pressure/challenge” to create 10 jobs per visa .
69 Many commenters stated that the proposed TEA investment amount was too high.
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