United States: Green and Spiegel Submits Comment on the Proposed EB-5 "Modernization Rule"
The Green and Spiegel Investor Team submitted its comment on the proposed EB-5 Modernization Rule. For background, see our analysis of the proposed Rule here. Fellow stakeholders interested in providing comment to USCIS may do so online before April 11 at 11:59 pm ET, when the comment period closes and the agency must review comments in its efforts to move forward with regulatory reform.
Our comment on the Rule focuses on the following main points:
- As drafted, the Rule is too narrow to truly "modernize" EB-5. There remain many other facets of the program that need improvement through regulatory reform, such as allowing concurrent filings, being able to incorporate voluminous filings by reference, overhauling the post-decision I-829 review process, and allowing for a Condition Removal Exemplar;
- USCIS should better engage stakeholders in the EB-5 community in drafting a modernization rule, allowing for a more collaborative process;
- The investment amount increases as proposed may put the program in jeopardy. Even worse, USCIS attempts to justify them, in part, by comparing Canadian investment immigration but errantly utilizes a failed program no longer in existence to do so; and
- The TEA designation process should not be federalized as it will drastically slow down projects' ability to start raising capital.
- In sum, we think the proposed Rule is sufficiently concerning to warrant its rescission and USCIS beginning the process anew. A full copy of our comment is attached to this article as a PDF.
We will continue to provide our readers and clients with updates as USCIS weighs comments to the Rule and moves forward in its efforts to modernize the EB-5 visa. Currently, the EB-5 Regional Center Program is scheduled to expire on April 28, as the community waits for further authorization through legislation.
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