EB-5 Regional Center Program Extended Until December | Practical Law

EB-5 Regional Center Program Extended Until December | Practical Law

Congress passed a short term extension to prevent the expiration of the EB-5 Regional Center Program until December 11, 2015. Additional legislation has been introduced to permanently extend the program along with several proposed reforms.

EB-5 Regional Center Program Extended Until December

Practical Law Legal Update w-000-6501 (Approx. 4 pages)

EB-5 Regional Center Program Extended Until December

by Practical Law Real Estate
Published on 09 Oct 2015 • USA (National/Federal)
Congress passed a short term extension to prevent the expiration of the EB-5 Regional Center Program until December 11, 2015. Additional legislation has been introduced to permanently extend the program along with several proposed reforms.
On September 30, 2015, Congress voted to extend the EB-5 Regional Center Program until December 11, 2015. The extension will allow members of Congress additional time to pursue legislation to reform and further extend the program.
Several bills have been introduced that seek to permanently extend the program while also increasing government oversight and security measures. Other areas of reform include:
  • Increasing the total number of EB-5 visas available.
  • Not counting investors' spouses and children towards the visa limit.
  • Changing the required investment amount.
EB-5 is a provision in the US immigration laws that provides expedited visa processing to immigrants that make an investment of either:
  • $500,000 in a property that is in a targeted employment area.
  • $1 million in a property that is not in a targeted employment area.
The EB-5 provision also requires that the development project create at least 10 new permanent US jobs.
A targeted employment area is defined as either:
  • A rural area, which is any area not within either:
    • a metropolitan statistical area; or
    • the outer boundary of any city or town having a population of 20,000 or more.
  • An area that, at the time of investment, has experienced unemployment of at least 150% of the national average rate.
(See 8 C.F.R. § 204.6.)
Targeted construction and development projects have been the main utilizers of EB-5 financing. In recent years, EB-5 financing has provided a cost effective alternative to construction financing, which has been difficult to obtain.
The EB-5 program has attracted nearly $12 billion in foreign investment since 2008 while creating nearly 30,000 jobs per year. However, the program has recently been the subject of criticism in a report from the Government Accountability Office due to the risk of fraud and the need to verify the program's economic benefits.
For more information on the EB-5 program, see Practice Note, Raising EB-5 Capital: Key Securities Laws Considerations and a Compliance Roadmap and EB-5 Immigrant Investor Visa Fundamental Requirements Chart.