The EB-5 initiative is one that has received bipartisan support over the years because of its effectiveness for bringing jobs and commerce into the country. According to EB-5 news updates this year, though, the bill faces some opposition for the first time. This opposition is combined with a few proposed changes that could lead to a failure to renew for the first time since its inception in 1990.
The U.S. Chamber of Commerce, understanding the potential impact this could have on businesses, economic growth, and jobs, has taken to the power of the pen to outline the benefits the EB-5 program has delivered for the past 25 years.
According to National Law Review, Thomas J. Donohue, who is the President and CEO of the U.S. Chamber of Commerce is the author of the op-ed sent to The Hill. In the op-ed Mr. Donohue outlines many beneficial projects made possible through EB-5 projects that include nursing homes, hotels, schools, and technology centers along with infrastructure projects. These projects benefit the communities where they are built in many ways.
Current criticisms of the program involve the fact that these projects are largely conducted in urban areas where the need for job creation isn’t as stark as in more rural areas that could enjoy greater benefits from the jobs and dollars projects like this bring into the community.
Mr. Donohue argues that Congress should not direct EB-5 investments into certain areas of the country at the expense of other areas as job creation is desperately needed everywhere in the country. Donohue acknowledges the need to prevent fraud and abuse while providing for the integrity of the program, but argues that limiting investors to specific locations could prove detrimental.
Mr. Donohue also points out in the op-ed that there are more than 13,000 applications pending for EB-5 projects. These petitions have all been created according to the current standards for EB-5 projects. Changing the legal requirements could unfairly penalize those who have acted in good faith already.
If you’re considering investing in an EB-5 project in the U.S. you need the benefit of an experienced EB-5 attorney on your side. Contact David Hirson & Partners, LLP for the latest EB-5 news updates as they apply to your project or application needs.