EB-5 Regional Center’s Granted a Stay

EB-5 Regional Center Program Extended Until September 30, 2016

House and Senate Leadership has recommended that the EB-5 Regional Center’s Program be extended until September 30, 2016. This new development allows for the program to continue without interruption or changes until the end of the third quarter of 2016.
Referred to as a “clean extension,” the revised language to the bill, which is part of the larger Omnibus appropriations bill, will mean that all policies and procedures currently in effect will remain unaltered. It is anticipated that further language will be developed within the next 10 months to create meaningful reforms to the EB-5 Program.
“The Nevada State EB-5 Regional Center will continue to work diligently to provide local business exceptional opportunities to grow their existing business or build new ventures by attracting foreign capital investment. I encourage companies considering start-up, expansion, or relocation to explore the many benefits of the EB-5 Program. Additionally, we look forward to positive reformation of the EB-5 Program in the coming months,” said Lynn Beteag, Administrator of the NVEB-5.
NVEB-5 is located in Carson City, Nevada and works to provide sound solutions for local businesses and viable opportunities for foreign investors.
For more information visit: NVEB5.org or call 855.498.6360.
Read more about the extension….

On Dec. 15, 2015, one day prior to the expiration of the EB-5 program on Dec. 16, House and Senate leadership have recommended that the EB-5 program be extended until Sept. 30, 2016. The language for extension will be included as part of the larger omnibus appropriations bill that is anticipated to be passed on Friday. This “clean extension” will mean that nothing to the program will change, such as minimum investment amounts, definitions for Targeted Employment Areas, or other reforms. All I-924, I-526, and I-829 petitions will continue to be accepted, processed, and adjudicated as normal, until a new reform bill is passed or until the program’s sunset on Sept. 30, 2016.

 

The EB-5 Investment Coalition, with the support of key members of the EB-5 industry, have worked tirelessly to advocate the EB-5 program and to recommend reform measures that will be beneficial to the greater EB-5 industry. Over the last year, five bills seeking to reform the EB-5 program have been introduced in both the House and the Senate, all proposing different measures for reform and improvement. When the EB-5 program was due to expire on Sept. 30, 2015, it was temporarily extended through a temporary government funding bill, a “continuing resolution,” until Dec. 11, 2015. In November 2015, a discussion draft produced by the House and Senate Judiciary Committees was widely circulated through the EB-5 industry, expanding upon S.1501, a Senate bill that was introduced in June 2015. Members of the EB-5 industry, including EB-5 IC, provided feedback and comments to the discussion draft, with the intent of making the EB-5 program workable while also advocating for strong integrity and enforcement measures. While negotiations were extensive and significant changes were agreed upon through the efforts of EB-5 IC and its partners, including the Real Estate Roundtable and the Chamber of Commerce, there were still many changes needed to make the bill workable. As it became clear that certain points of the discussion draft needed further negotiation, comment, and study, EB-5 IC and its partners, recognized the need for more time to work on different aspects of the bill, and sent a letter to the House and Senate leadership, requesting a one year extension with integrity measures.

 

As the deadline of Dec. 16 quickly approached, the House and Senate leadership recognized the need for more work on the bill as voices of the EB-5 industry were heard, and as a result, an extension of the EB-5 program until Sept. 30, 2016, will be included with the omnibus appropriations bill, along with the other expiring immigration programs (R-1 visas for religious workers, the Conrad 30 waiver program for J-1 medical workers, and the E-verify program.)

 

EB-5 IC Board Members Laura Foote Reiff and Jeff Campion recognize the equally tireless work of key Congressional leaders by stating:  “We thank our champions in Congress; House and Senate Leadership and Chairmen and Ranking Members of the House and Senate Judiciary Committees. We especially thank senators Cornyn, Flake, and Schumer, and congressman Pete Sessions – who ensured that our voices would be heard.”

 

The next 10 months will be critical in ensuring that members of the EB-5 industry work together with Congress to ensure that meaningful reforms take place that will protect all stakeholders of the industry.  EB-5 IC will continue to work tirelessly with its partners to ensure that all interests are represented.

 

 

Resolution for 5 Day Funding Government to Include EB-5 Program

On December 11, 2015, the House passed a short-term funding bill to avoid another government shutdown. The bill allows for the EB-5 Program to continue until December 16th.

Senate leaders have noted that they will not vote on a funding bill until the House does.  As a result, Congressional leaders will be facing a tight deadline due to the nature of Senate procedure.

 

Reports indicate that the House may vote on a long-term funding bill as early as Tuesday, December 15th.  As soon as the House passes a bill, Senate Majority Leader Mitch McConnell (R-KY) is expected to file cloture on the funding measure immediately, forcing Senators to wait 30 hours before they can vote on final passage and send a budget bill to President Obama to be signed into law.

 

Take 30 seconds of your time voice your support for the EB-5 Program at IIUSA’s Legislative Action Center by clicking the “EB-5 is Working” logo below! Whether you are a member, nonmember, Program stakeholder/beneficiary, or supporter, you are welcome to utilize this advocacy tool that is designed to empower you to tell your story of U.S. job creation at no cost to the taxpayer through EB-5 capital investment. Tell your “EB-5 is Working” story today!

 

(IIUSA) staff, with guest contributors from time to time.  We launched the blog in 2010 as part of our commitment to industry development and public education on the EB-5 Regional Center Program (the “Program”).  Four years later, a wealth of industry archives can be found exploring this website.  We welcome your feedback and thank you for reading!

 

) by a voice vote to avoid a government shutdown. The original EB-5 extension is included. Yesterday, the Senate passed the short-term, five-day continuing resolution (CR) by unanimous consent, giving lawmakers until December 16th to pass a long-term spending bill for the rest of fiscal year 2016.

 

 

 

Does the EB-5 Program Need a Facelift?

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:

  1. Elimination of TEA areas
  2. Changes to how job creation is calculated
  3. Additional anti-fraud, securities laws and verification requirements
  4. Long term reauthorization of the program to September 2019
  5. Provide the Department of Homeland Security with better tools to guard against program abuse and promote program integrity
  6. Establish an EB-5 Integrity Fund
  7. Require Background Checks
  8. 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.

Sources:

  1. 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
  2. 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/
  3. Lehy Draft to Congress. http://www.leahy.senate.gov/imo/media/doc/MDM15J00.pdf