EB-5 Program Will be Extended Until 9/30/16 Without Reform; The Work Begins
To all who have been watching the EB-5 legislative saga unwind before us in the last weeks, we are happy to announce that Congressional leaders have come to an agreement to extend the EB-5 program, with no changes, through September 30, 2016. The announcement came last night from IIUSA and the EB-5 Investment Coalition, and has been confirmed by others today.
This result comes after furious negotiations over draft language circulated over the course of the last ten days broke down, with the vast majority of the industry opposed to language that would have had substantial and devastating, and perhaps unintended consequences on the EB-5 Program. The consensus reached was that the process was too rushed, and stakeholders and legislators alike did not have sufficient time to fully evaluate the proposed language and all of its potential effects to ensure that the proposed legislation, which would have extended the Program for a period of five years, really met the goals of improving, and not impeding, the EB-5 Program.
As we all breathe a collective sigh of relief over the fact that there will not be radical changes to the EB-5 Program this year, and projects and regional centers can continue to raise capital under the Program, and investors can continue to invest and pursue immigration to the United States, we should acknowledge that EB-5 reform is on the way, and the time to start work on building a consensus and working toward reforms that benefit investors and the industry is now.
My own personal view is that the process this time around was extremely rushed and lacked transparency and the opportunity for input by a majority of those who actually work with the Program on a daily basis. I am hopeful that the process of reform will be more inclusive and transparent going forward, and that we can all work together to come up with a bill that meets to goals of improving the integrity of the Program, rooting out fraud and abuse, and, most importantly, facilitating continued foreign investment and job creation in the United States.
We will be posting more on this topic in coming days.
This post originally appeared on Klaskolaw.com. Reprinted with permission.
Daniel B. Lundy is a Partner and a member of the Firm's EB-5 practice. Mr. Lundy has successfully represented numerous immigrant investors in their EB-5 petitions and applications, including investors seeking permanent residence through investment in their own businesses and investors seeking permanent residence through investments into USCIS approved Regional Centers. Mr. Lundy also represents developers and others who seek to use foreign investment funds under the EB-5 program to fund their projects, either through the formation of a Regional Center or by joining with an existing Regional Center. Mr. Lundy works with various securities lawyers, economists, business plan writers and other professionals in the preparation and filing of Regional Center designation and Regional Center amendment applications. Mr. Lundy is experienced in reviewing Regional Center and project business plans, economic reports, securities offering documents, and corporate documents for compliance with the EB-5 program requirements, and in consulting and advising clients on the specific immigration requirements of the EB-5 program.