Upcoming December 8th EB-5 Policy Deadline & Potential Changes
With the December 8th EB-5 program renewal deadline approaching, many investors and potential investors are concerned about the changes that will be implemented. Below is a list of proposed EB-5 policy changes:
EB-5 Policy Extended Until December 8th, 2017
- All deeply involved law makers agree Minimum investment expected to raise to over $800,000 and TEA certification policies expected to change significantly.
- The key reforms up for debate center on reclassifying targeted employment areas (TEAs), raising the minimum investment amounts to an anticipated, implementing firmer oversight measures, improving visa processing efficiency, and increasing the number of visas available. While the EB-5program has been renewed for years through short-term continuing resolutions, lawmakers have targeted the program and are poised to take legislative action.
- Filing now under the current active EB-5 policy before any change is enacted will give investors the best chance of entering a project located in a current TEA at the $500,000 investment level. (Note: USCIS and Department of Homeland Security reserves the right to change EB-5 policy at any time and any projections as to any forthcoming changes are based on public input and knowledgeable sources but not directly from USCIS. Political risks to EB-5 policy changes exist.)
IIUSA message on EB-5 extension
The IIUSA is one of the leading EB-5 industry trade groups. Here is the text of the message we received prior to the previous deadline of September 30th, 2017:
“Dear IIUSA Public Policy Committee,
As we are sure you’ve seen in media outlets, there is important news regarding government spending, and in turn, EB-5 reauthorization.
EB-5 Extension thru 12/8 Part of Congress/White House Spending Deal
Yesterday, Congress reached a deal with the White House that, once passed at some point this September, would extend existing funding levels and other program authorizations (such as EB-5) included on the last “continuing resolution” (“CR”) through 12/8/17.
The EB-5 authorization comes in Section 105 text of the deal released yesterday which:
Continues all authorities, requirements, and limitations from 2017 appropriations Acts through the date in section 106. Allows for valid obligations and expenditures during the period of the Continuing Resolution (CR).
Section 106 verifies the date:
Continues appropriations through December 8, 2017, or the enactment of the pertinent appropriations Act.”
In light of the December expiration, we are urging interested investors to move quickly as the minimum investment amounts are almost certainly going to rise and the TEA definition is going to change, which will make desirable project locations considerably more expensive (proposed investment amounts have been as high as $1.3M USD). Let’s please arrange a call along with the investors in order to determine how we can move to file as fast as possible in order to beat the deadline and avoid any needless complications or increases in price.