What lies ahead for the EB-5 Immigrant Investor Program?
Here’s the latest EB-5 news and what it would mean for applicants of the EB-5 Immigrant Investor Program:
The EB-5 Extension
The EB-5 Regional Center Program has been extended until September 30th without any changes. The EB-5 Basic Program is permanent and does not need reauthorization. The Regional Center Program, on the other hand, has been given short extensions for years now. Many in the EB-5 industry would like to see the Regional Center Program be made permanent and under President Trump’s Administration it may be possible. President Trump’s son-in-law, Jared Kushner, and his family, have used the EB-5 investment funds for their own real estate projects.
Possible EB-5 Regulation
It was recently announced the an EB-5 Regulation has made it to the final stage of review before it is set to become law. While it’s unclear what the final reforms are in the regulation, we know what changes were initially added. These could have all changed, after the public comment period criticized many of the proposed reforms, but here are the major changes:
1. An significant increase in the minimum investment amount.
Targeted Employment Area (TEA) Investments would increase from $500,000 to $1,350,000.
Non-TEA Investments would increase from $1,000,000 to $1,800,000.
2. States can no longer designate TEA.
Only the federal government would be able to designate TEA. They would implement a new standard methodology for designating TEA. The states would no longer be able to promote economic development in areas of their choosing. Investors will likely not be able to invest in highly desirable areas such as New York and Los Angeles if they want the TEA status for the lower minimum investment amount.
EB-5 Retrogression
Mainland China and Vietnam have already entered EB-5 retrogression, but other countries may soon be joining them. India is likely to face retrogression if the number of applicants continues to increase like it has for the last three years. Chief of the Department of State (DOS) Immigrant Visa Control & Reporting Division, Charles Oppenheim, predicted that India may face visa retrogression as soon as July, 2019. South Korea, Taiwan and Brazil are predicted to face slower wait times in the months to come.
EB-5 Program Reforms The Industry Would Like To See
The main reform, many EB-5 industry insiders are pushing for is a change to the visa cap. Right now 10,000 visas are available annually for the EB-5 Program, but this total includes the investors spouse and unmarried children under the age of 21 years. On average, 3 visas are issued for each EB-5 investor, meaning that there are really only about 3,300 visas available annually to EB-5 investors. Changing the visa cap to only count investors would help with the current backlog.
The other reform that many would like to see is a standardized way to approve currency exchange methods. Right now two countries may use similar methods for transferring money outside their home country, and USCIS may approve one while requesting further proof from the other.
Why Invest Now?
No changes to the EB-5 Regional Center Program have taken place yet and the countries, other than China and Vietnam, have not yet faced visa retrogression, so now is still a very good time to begin the EB-5 investment process and lock in your spot in line.
Other visa categories have long wait times, if not longer than EB-5, and the benefits of the EB-5 Program far outweighs any other category. There are no age, language, education, work experience, health, or skill requirements to the EB-5 Program. Funds can come from income, sale of assets, gifts, inheritance, and even a loan. The EB-5 Program gives investors and their families the opportunity to live, work, study, and travel anywhere in the U.S. Finally, five years after receiving conditional permanent residency, the investor, their spouse, and unmarried children under the age of 21 years may all be eligible for U.S. citizenship.
For more information about the EB-5 Immigrant Investor Program, send us a message or fill out our free EB-5 Evaluation form below.
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