Things change. Times change. With all change comes uncertainty and angst. Such is it with the EB-5 Program approaching its “sunset” and looks to our country’s leaders to determine the program’s future.
While many proposed details of the future structure of the program are unclear, it is certain that change will indeed happen. Since its inception in 1992, Congress has failed to address adequate reforms for EB-5. With tremendous growth and over $13 Billion in direct foreign investment since 2008 alone, a program overhaul is long overdue. While largely touted a huge success for the US economy, a few bad apples have led to some short sighted negative press.
As the House and Senate move towards the December 11, 2015 spending deadline (Omnibus Spending Bill), the fate of EB-5 lies in wait. Compromised EB-5 language was included in the bill which contains substantial reform to the EB-5 Program.
Some of the specifics of the proposed legislation to reauthorize and reform the program include:
- Elimination of TEA areas
- Changes to how job creation is calculated
- Additional anti-fraud, securities laws and verification requirements
- Long term reauthorization of the program to September 2019
- Provide the Department of Homeland Security with better tools to guard against program abuse and promote program integrity
- Establish an EB-5 Integrity Fund
- Require Background Checks
- Raise the lower investment threshold to $800,000
While it is widely agreed upon that the EB-5 Program is in need of a facelift, the Program is still relevant and needed in today’s ever changing economic landscape. EB-5 is a powerful tool to the US economy and a viable instrument for US job creation.
It would be tragic to lose such an innovative and successful economic instrument.
- The EB-5 Revolution has Begun. By Mathhew Gordon http://discuss.ilw.com/showthread.php?39760-Article-The-EB-5-Revolution-has-Begun-By-Matthew-Gordon
- IIUSA Supports Bicameral, Bipartisan Agreement by Judiciary Committee Leaders to Reform and Reauthorize EB-5. By IIUSA https://iiusa.org/blog/government-affairs/us-congress/iiusa-supportseauthorize-eb5/
- Lehy Draft to Congress. http://www.leahy.senate.gov/imo/media/doc/MDM15J00.pdf