Continuing Resolution Expected To Pass, Will Extend EB-5 Regional Center Program
Last Thursday the House of Representatives easily passed a short continuing resolution (CR) to fund the government through November 21, 2019.
The bill is now headed to the Senate where it is expected to be voted on this week, before it goes to President Donald Trump’s desk for a signature.
The continuing resolution includes an extension of the EB-5 Regional Center Program to Nov. 21, which coincides with the date on which the EB-5 modernization regulation is set to go into effect.
The new EB-5 Immigrant Investor Program Modernization rules make major changes to the visa program including increasing the minimum investment amount by nearly double ($500,000 increases to $900,000 for targeted employment area projects and $1 million to $1.8 million for non-targeted employment area projects) and by taking away states’ rights to designate targeted employment areas.
Targeted employment areas (TEA) are areas that are rural or have an unemployment rate that is at least 150% the U.S. national average. EB-5 projects located in designated targeted employment areas qualify for the lower minimum investment amount of $500,000 (soon to be $900,000). The lower minimum investment amount makes these projects more attractive to EB-5 investors.
Once the CR passes Congress and is signed by the President this week, one effect it’s certain to have on the EB-5 Program is to drive investors to apply now. Here’s why:
1. The EB-5 regulation goes into effect on Nov. 21
2. The EB-5 Regional Center Program needs reauthorization on Nov. 21
3. The 2020 fiscal year begins October 1, meaning the visa numbers are about to reset
The desire to apply before the EB-5 Program’s rules change combined with these other factors will cause investors to race to file their I-526 Petition and get grandfathered into the program under the current rules.
- New York
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