April 6th, 2017
In January, the Department of Homeland Security (DHS) published two separate proposed rules in the Federal Register, one addresses program monitoring and oversight, the other addresses TEAs and investment amounts. The deadline to provide comments on either of the proposed regulations is next Tuesday, April 11th.
At this time DHS has not provided any further information on the status of these proposed regulations in light of President Trump’s regulatory freeze so it is critical that the industry submit comments of the potential negative effects that these regulations pose for the EB-5 Program.
If you have not yet provided your comments to DHS on either of the proposed rules you can do so by following the steps below. It is imperative that as many EB-5 stakeholders as possible submit comments before the deadline.
IIUSA will be submitting comments on behalf of the Association for both the NPRM and the ANPRM, but it is critical that individuals and companies submit their own comments as well. ( more... )
April 06, 2017
The EB-5 program puts Americans to work. According to a recent Commerce Department study, in fiscal year 2012-2013 alone, global EB-5 investors provided $5.8 billion in foreign capital to invest in 562 projects in communities from California to Alabama and created an estimated 174,039 jobs. That’s a hefty economic punch for a program that operates at no cost to taxpayers. Yet, unless Congress acts quickly, the EB-5 Regional Center program will expire on April 28. For 27 years, EB-5 has been repeatedly reauthorized with large, bipartisan majorities. Now, some vocal critics — and classic Washington intransigence — threaten the survival of the program and the jobs it helps to create. ( more... )
April 5th, 2017
U.S. Citizenship and Immigration Services (USCIS) announced that it will host a webinar on Wednesday April, 26 from 1:00 to 2:30pm (Eastern) to discuss the Form I-924, Application for Regional Center Designation Under the Immigrant Investor Program. This webinar will discuss certain changes to the Dec. 23, 2016 edition of Form I-924.
Form I-924 is used by any economic unit, public or private, in the United States that is involved with promoting economic growth (including increased export sales, improved regional productivity, job creation, or increased domestic capital investment) to:
--Ask USCIS to be designated as a regional center under the Immigrant Investor Program; or
--Request an amendment to a previously approved regional center.
To register, please follow lease steps:
--Please email ipostakeholderengagement@uscis.dhs.gov with your full name and the name of your organization. Also, please place “I-924 Webinar” in the subject line. Once we process your registration, you will receive a confirmation email with additional details.
--If you have any questions regarding the registration process, or if you have not received a confirmation email within two business days, please email the same address.
( more... )
Apr 4, 2017
Reforms to the EB-5 Immigrant Investor program is a can that Congress has been kicking down the road for the past two years. Despite growing optimism that comprehensive changes will be introduced this year, those changes likely won’t come in time for the next big deadline—the program’s April 28th expiration.
Both Republicans and Democrats agree that changes to the nearly 30-year-old program are needed. Yet coming to terms on new rules has proved to be a big stumbling block. Instead of passing a new bill, EB-5 has been receiving short-term, three- and six-month extensions since 2015 just to keep the program running.
Given the looming deadline, it looks like at least one more short-term extension is in the cards. Players in the EB-5 industry have not given up hope of seeing a comprehensive EB-5 bill approved prior to April 28th. However, it is more likely that Congress will approve new rules along with a five-year renewal later this summer or fall ( more... )
April 4th, 2017
On March 27, Senator Rand Paul (R-KY) introduced S. 727, the Invest in Our Communities Act. The bill would not only increase the worldwide levels of employment-based visas, but also permanently reauthorize the EB-5 Regional Center Program. If enacted, the bill would exempt dependents of visa applicants from being counted towards the visa cap and would also remove the per country visa cap for the EB-5 visa category. In addition to permanently reauthorizing the EB-5 Regional Center Program the bill includes several integrity measures specific for EB-5. Among other provision, the bill would:
- Prohibit bona fides of regional centers from participating either directly or indirectly if they have been found guilty of certain crimes in the past 5 years;
- Bar involvement by a foreign government in regional centers;
- Require criminal and other background checks (including fingerprinting) of regional center or regional center affiliated enterprises and any person involved in them;
- Allow for termination of regional centers by the Secretary of Homeland Security for reasons of fraud, abuse, misrepresentation, or otherwise failing to comply with the law;
- Statutorily reaffirms the requirement to comply with securities laws;
- Require oversight and record keeping by regional centers of offers, purchases, and sales of, and advice relating to securities made by parties associated with the regional center.
March 30, 2017
On March 20, 2017, USCIS announced the launch of the EB-5 Regional Center Compliance Audit Program. According to the USCIS website, “compliance audits are an additional way to enhance EB-5 program integrity and verify information in regional center applications and annual certifications.”
The categories of auditing activities can be grouped under: (1) verification of information in regional center applications and annual certifications, including updates, (2) verification of continued eligibility, based both on regional center submissions and outside records, and (3) consensually obtained information through “data requests” and site inspection. ( more... )
March 29, 2017
As Congress prepares to take up budget negotiations, the future of the popular EB-5 immigrant visa program is facing the end of its latest temporary extension -- and the real possibility that the program, which offers permanent U.S. residency to foreign nationals who invest in certain job-creating businesses or projects, is coming to an end.
Meanwhile, developers and foreign nationals uncertain about the program's future are rushing to apply ahead of the April 28 deadline, when lawmakers may either sharply raise minimum contribution requirements or allow the program to expire.
Sen. Rand Paul, R-KY, a longtime advocate for the EB-5 program, on Monday introduced a bill to "increase the worldwide level of employment-based immigrants and to reauthorize the EB-5 regional center program" in advance of its scheduled expiration. ( more... )
JAN 26, 2017
Earlier this month, about a week before Donald Trump's inauguration, the Department of Homeland Security proposed increasing the minimum investment amount required for the EB-5 program to $1.35 million in a "targeted employment area," up from $500,000 currently. A targeted employment area is an area with high unemployment or a rural area. The proposal suggests raising the minimum investment to $1.8 million for developments in low- to average-unemployment areas, up from the current $1 million.
The proposal also seeks to change how a "targeted employment areas" (or TEA) is determined. The power to define what is a TEA now lies with the states but the Department of Homeland Security suggests taking on that task. ( more... )
01/13/2017
The Department of Homeland Security (DHS) proposes to amend its regulations governing the employment-based, fifth preference (EB-5) immigrant investor classification and associated regional centers to reflect statutory changes and modernize the EB-5 program. In general, under the EB-5 program, individuals are eligible to apply for lawful permanent residence in the United States if they make the necessary investment in a commercial enterprise in the United States and create or, in certain circumstances, preserve 10 permanent full-time jobs for qualified U.S. workers. This proposed rule would change the EB-5 program regulations to reflect statutory changes and codify existing policies. It would also change certain aspects of the EB-5 program in need of reform. ( more... )
Dec 21, 2015
IIUSA supports efforts by Congress to strengthen the integrity of the EB-5 Regional Center Program through enhanced oversight and law enforcement. That is why we supported the bipartisan, bicameral agreement among judiciary committee leadership to enact thoughtful and comprehensive reforms as part of long term reauthorization of the Program in this week’s omnibus appropriations legislation. Unfortunately, Congress did not enact these reforms as part of the omnibus appropriations legislation passed last week.
This means our work continues with even more urgency. The legislation from the current 114th Congress also continues to grow with important reform ideas to consider. IIUSA welcomes the interest of all congressional offices, and introduction of new legislation, to achieve the necessary reform that will enable the long term reauthorization the EB-5 Regional Center industry truly needs. ( more... )
December 16, 2015
The EB-5 visa program has been extended with all current rules intact till September 30, 2016 as part of the omnibus spending bill Congress reached Tuesday night.
The regional center part of the program was set to expire last Friday, and lawmakers had come close to a compromise that would have reauthorized it for another five years, but with many changes designed to addresses myriad criticisms, reported the San Francisco Chronicle. ( more... )
The EB-5 Immigrant Investor Program
EB-5 Overview
The U.S. government established the EB-5 Investor Immigration Pilot Program (EB-5) in 1992. Its primary goals are to promote domestic economic growth, improve regional productivity, and create jobs.
Through the EB-5 program, local Regional Centers are approved and authorized to raise capital from immigrant investors. The minimum investment is $1,000,000 unless the money is invested in a Targeted Employment Area (TEA) or rural area, in which case the minimum is $500,000. In return, the immigrant investors can achieve permanent residency for themselves and their families.
Whatcom Opportunities Regional Center, Inc. (WORC) has been designated by the United States Citizenship and Immigration Service (USCIS) as a Regional Center entitled to participate in the EB-5 program. As an approved Regional Center, WORC is authorized to develop and operate retirement facilities in Whatcom County, Washington by collecting, pooling, and investing funds from immigrant entrepreneurs.
The foreign entrepreneur must invest at least $500,000 with WORC. Other EB-5 requirements include:
- The investment of $500,000 must be spent in a targeted employment or rural area;
- The investment must be in a new commercial enterprise; and
- The enterprise must create or preserve at least 10 full time jobs for qualifying U.S. workers
Saving EB-5
The EB-5 Investor Immigration Pilot Program has created or retained hundreds of jobs in Whatcom County at no additional cost to the taxpayer: Foreign investment funds pay for everything including building permit fees, construction labor, materials, and caregiver workforce development costs.Unfortunately, EB-5 is currently set to expire on September 30, 2016. Congressional advocates like Vermont Senator Pat Leahy and Washington 2nd District Congressman Rick Larsen support making EB-5 permanent. Please contact Congressman Larsen or contact Congresswoman DelBene of Washington's 1st Congressional District if you wish to show YOUR support of this critical and cost effective program.
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