A few thoughts from CMB regarding the Bill to extend and improve the EB-5 program. How might this effect an EB-5 Investor?
Two United States Senators Introduce Bill to Extend and Improve EB-5 Program.
June 3, 2015, Senators Patrick Leahy (D-VT) and Chuck Grassley (R-IA) introduced a bill to reauthorize and improve the EB-5 program.
How might this effect an EB-5 Investor?
Here are a few thoughts from CMB:
It is our belief there will be further scrutiny on the source of funds of any foreign national investor filing and I 526 application before the USCIS. It is our belief background checks will be required of all Regional Center principals. There will be significant changes in how TEA’s are determined and enforced however it is not clear what exactly that will be today. Every existing and recently proposed law before the Congress has included an increase in the amount of investment under the EB-5 program. It is our opinion the increase will be from $500,000-$800,000 for TEA approved areas and from $1 million to $1.2 million for non-TEA areas. It is our opinion the law will include an anti-fraud provision whereby all Regional Centers will be required to pay what is likely to be a $20,000 a year licensing fee to help fund an anti-fraud unit. In our opinion foreign ownership of Regional Centers as well as foreign government involvement in the Regional Centers directly and/or indirectly including financially will be prohibited. We believe the USCIS will be given enhanced authority to regulate the EB-5 program. We are not sure what those authorities will be but we believe the USCIS will have more power to administer and regulate the EB-5 program. We hope Congress will approve legislation that allows for 10,000 EB-5 investors as compared to 10,000 visas. Not all bills contain the removal of derivatives for the 10,000 yearly limit on investor count. We believe the original intent of Congress was 10,000 paying individuals per year.