Congress extended “again” the current law to December 22, 2017 with no changes!

Did you know?

Congress extended “again” the current law to December 22, 2017 with no changes!

Congress is currently debating a number of issues related to EB-5. Our hope is that these issues will all be clarified once the long awaited amendments are made and the new comprehensive immigration law is enacted.

To review:

What will happen with the minimum investment requirement? Will it stay the same when the new law is in effect or will it be raised? New legislation might mandate investors to invest up to $ 1.35 million in EB-5 funds for projects in targeted employment areas. Urban area projects could go up to $ 1.8 million.

The definition of TEA will also most likely change, making it very difficult for projects in the heart of big cities like New York, Los Angeles, Chicago, and San Francisco to qualify as TEA projects.

If the funds are available to be returned to the investors but the investors are not ready to receive those funds, redeployment of the funds could become necessary. For the time being, there is no explicit law prohibiting the freed funds to be returned to an escrow account awaiting for the adjudication of the I-829 petition. If the new law explicitly mandates those funds to be reinvested into investments where the funds would once again be at risk, then new projects will have to:

• Incorporate a redeployment strategy that will be USCIS compliant.
• Ensure that they do not expose the EB-5 investors to undue risk which was not communicated when the investor signed onto the project.

Many market practitioners are of the opinion that when the time to redeploy the funds comes, the services of a competent registered investment advisor (RIA) should be used. In fact, the necessity to use RIA services should be explicitly mentioned in the private placement memorandum, business plan, limited partnership agreements etc. Engagement of an RIA in connection with a reinvestment of capital can protect general partners and managers of new commercial enterprises, as well as EB-5 investors, by providing independent advice, access to multiple investment options, and securities law compliance.

Now, we wait for another few days. Together with the tax reform, healthcare etc. we sincerely hope that the comprehensive immigration reform will bring much awaited clarity to the EB-5 legislation. There is no denying of the good that this program has done for the US economy. The EB-5 program has given the stimulus to create over 100,000 jobs each year and has attracted over $5 billion in foreign capital to the country. The program is too valuable to not be extended or extended with less than ideal conditions.

For more information on the latest news on EB-5 please call us at + 1 917 355 9251 or email us at info@americaeb5visa.com

Posted by americaeb5visa on December 12, 2017

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