I recently wrote about the popular EB-5 Regional Center program, which allows foreign investors to fund U.S.-based projects with a minimum investment of $500,000 in exchange for Green Cards. The program was originally set to sunset on December 11, 2015, but has received a short extension until December 16, when it will likely be renewed with improved reforms in place.
On December 11, the House of Representatives approved a short-term spending bill that renewed the program for five days. The five-day window gives the government a chance to keep negotiating the U.S. budget before the government shuts down, which includes the changes proposed to the EB-5 program in the American Job Creation and Investment Promotion Reform Act of 2015.
Proposed changes include increasing minimum investment amounts, providing the Department of Homeland Security with increased oversight, mandating that investors receive additional disclosures about potential projects from regional centers and improving Green Card application processing times. The act also extends the program until September 2019.
Many of the changes address issues that have plagued the program in the past, such as regional center mismanagement of funds and fraud. Overall, the program is a boon for the U.S. economy and a win for investors looking to move to the U.S. permanently, so there is much incentive to renew the program with some improvements.
The EB-5 community eagerly awaits approval of the new legislation. Altro LLP will continue to follow the EB-5 story as it unfolds this week. Stay in touch for updates on this issue by following us on Twitter and Facebook, or contact me at daltro@altrolaw.com with questions about how you can benefit from the EB-5 investment-for-visa program.
