Home Page


Immigration Daily

Archives

Processing times

Immigration forms

Discussion board

Resources

Blogs

Twitter feed

Immigrant Nation

Attorney2Attorney

CLE Workshops

Immigration books

Advertise on ILW

VIP Network

EB-5

移民日报

About ILW.COM

Connect to us

Make us Homepage

Questions/Comments


SUBSCRIBE





The leading
immigration law
publisher - over
50000 pages of
free information!
Copyright
© 1995-
ILW.COM,
American
Immigration LLC.

  • Article: Five Things to Know About the New EB-5 Regulations By Bernard Wolfsdorf, Esq., Joseph Barnett, Esq., and Robert Blanco, Esq.

    Five Things to Know About the New EB-5 Regulations

    by


    The Obama Administration has sent substantial new regulations to Office of Management & Budget (“OMB”) in the final step to modernize the EB-5 Program.   The OMB is a government agency that needs to clear regulations before published.

    We expect the regulation to be published in the next 30 days, with at least a 30-day comment period. This means that there may be only about 60 days before the minimum investment amount increases.  The new regulations will be the most dramatic change to the EB-5 Program since its inception 25 years ago. 

    There is likely a small window of opportunity to file an I-526 petition before the new rules become effective early next year.  This window will likely present the last opportunity to apply under current TEA rules and with a $500,000 investment. There is likely a window of opportunity to file now before the new rules apply.

    Here are five things to know about the new regulations:

    • Increases to Required Investment Amounts. The new regulations will include an increase to required EB-5 investment amounts.  Nobody is certain whether USCIS will see a gradual increase or a sudden jump to an increased minimum investment amount of $800,000 for TEA investments and $1 million or even $1.2 million for non-TEA investments.
    • Changes to Definition of Targeted Employment Area. The new regulations will likely redefine the types of EB-5 projects that meet eligibility for the reduced investment amount, either because they are in rural or other areas where a capital infusion is likely to create jobs and benefit the community, or in certain industries such as manufacturing.
    • Changes to Priority Date Retention. Presently, if it becomes necessary to re-file an I-526 petition because of project failure or other circumstances that are through no fault of the immigrant investor, for mainland Chinese born, he/she still must go to the back of a long waiting line.  Hopefully, the new regulations will entitle those investors that are defrauded or otherwise not at fault to refile and retain the old priority date.   
    • More Predictable Adjudications. The goal of the new regulations, other than modernizing key areas of the EB-5 Program, is to provide a higher level of predictability and transparency in the adjudication process.  We hope the changes will enhance the integrity of the EB-5 Program by clarifying key eligibility requirements for participation and further detailing the processes required.
    • EB-5 Waiting Line.  It is hoped that Congress will also tackle the critical problem of the waiting line soon and we encourage Congress to address the quota issue at the same time it re-introduces the American Job Creation and Investment Promotion Reform Act. This bill is likely to be considered early next year and the new law and the new regulations will complement each other in revising the EB-Program.

    Unfortunately, these regulations can do nothing about the most critical issue of the EB-5 Program, that is increasing waiting line for Mainland Chinese born investors.  This is an issue that only the U.S. Congress has authority to resolve.  One solution is for Congress to borrow 10,000 visas annually from the 50,000 visas given away randomly in the annual green card lottery.

    Wolfsdorf Rosenthal LLP will be releasing analysis on the new regulations once made public, so be sure to check back.

    Reprinted with permission.


    About The Author

    Bernard P. Wolfsdorf, Esq., Robert J. Blanco, Esq. and Joseph M. Barnett, Esq.: Bernard Wolfsdorf is the managing partner of the top-rated law firm, Wolfsdorf Rosenthal LLP (www.wolfsdorf.com), and the past national president of the 14,000-member American Immigration Lawyers Association (AILA). Established in 1986, Wolfsdorf Rosenthal LLP is known worldwide for providing exceptional quality legal services. With 19 lawyers and offices in Los Angles and New York, the firm was recently listed as a top-tier immigration practice by Chambers & Partners with several of the firm's attorneys listed in the 2015 International Who's Who Legal. Mr. Wolfsdorf specializes in EB-5 investment immigration in addition to the full range of global immigration matters. Joseph Barnettis licensed as an attorney in the State of Illinois and the State of Wisconsin and practices exclusively in immigration and nationality law. Robert Blanco specializes in business and employment immigration cases. He prepares both immigrant and non-immigrant petitions for skilled workers, executive managers, high net worth investors, and people of extraordinary ability in the arts, sciences, and business. Mr. Barnett's practice focuses in the area of EB-5 Immigrant Investor Program; EB-1A foreign nationals with extraordinary ability in the sciences, arts, education, business or athletics; and other business immigration matters


    The opinions expressed in this article do not necessarily reflect the opinion of ILW.COM.

    Comments 1 Comment
    1. ImmigrationLawBlogs's Avatar
      ImmigrationLawBlogs -
      How long will these new regulations last once the new administration takes over on January 20, 2017? How long will EB-5 last? How long will any of America's current legal immigration programs survive in the Donald J. Trump presidency?

      How long will legal immigration as we have known it for the past half century, ever since the 1965 immigration reform law supplanted the Northern Europeans only immigration Act of 1924, last, with an avowedly nationalist adviser such as Stephen Bannon working in the White House, and someone like Kris Kobach, with his history of drafting anti-minority state immigration laws and voter suppression laws, also so close to the new president's ear?

      This is not to mention the new Attorney General designate, Jeff Sessions, who is very far from being a supporter of any form of legal immigration, and who will have wide powers to investigate, harass or prosecute anyone who hires (or "assists" or "harbors" - see INA Section 274) any immigrant who has the "wrong" skin color (or religion), or who comes from the "wrong" part of the world.

      Yes, the new EB-5 regulations are no doubt important and significant - for however many days or weeks they may last. To use one of my favorite expressions (with apologies to readers who may be tired of hearing it), it was no doubt very important to rearrange the deck chairs on the Titanic so they would be in really nice order when the iceberg hit, or even after it hit.

      In the same way, it is no doubt useful to familiarize ourselves with the latest EB-5 regulations in time for America's immigration system's date with the iceberg on January 20, 2017.

      Roger Algase
      Attorney at Law
Put Free Immigration Law Headlines On Your Website

Immigration Daily: the news source for legal professionals. Free! Join 35000+ readers Enter your email address here: