Among a number of potential changes to the EB-5 Immigrant Investor Program, one in particular could pose significant new challenges for foreign citizens wishing to obtain U.S. visas.
Under the American Job Creation and Investment Promotion Reform Act, pending in Congress as S.1501, prospective investors would be required to provide extensive documentation related to funds verification. Required documentation would include business records, seven years’ worth of tax returns, information about monetary judgments and the identity of anyone who transfers money into the United States for the investor. The bill also requires that investors secure investment capital with their own assets.
Investors should consider working with a qualified EB-5 attorney to ensure compliance with the proposed requirements, which also include limits on funds given as gifts to the investor and restrictions on who can provide such gifts.
Additional EB-5 legislation updates
The proposed law is one of several EB-5 legislation updates pending in Congress that would address recent recommendations from the Government Accounting Office. The recommendations, provided in a recent report to U.S. Citizenship and Immigration Services, include:
- Beginning risk assessments of the program.
- Revising forms and the interview process to collect additional information.
- Reporting information collected by USCIS about investors.
- Reviewing the program’s costs and why the information was excluded from a new study by the U.S. Department of Commerce.
How do the EB-5 legislation updates address the recommendations?
The three EB-5 legislation updates currently pending in Congress address the GAO recommendations in a number of ways. Along with S.1501, the legislation includes the American Entrepreneurship and Investment Act, known as H.R.616, and the EB-JOBS Act, known as H.R.3370.
The bills include overlapping provisions meant to enhance oversight and integrity of the EB-5 program. Although USCIS already has agreed to implement the GAO recommendations, the pending legislation provides additional support.
In addition, the GAO report detailed the challenges of verifying investment organizations. The three bills would provide USCIS with more authority to seek out misconduct among operators of the EB-5 program’s regional investment centers. The recommended risk assessments also would provide an additional method for verifying the source of an investor’s funds.
How will the legislative updates affect you?
To learn more about steps you should take to comply with EB-5 legislation updates, consult an experienced EB-5 attorney. Contact the Law Offices of David Hirson & Partners, LLP, or call (949) 383-5358.