EB-5 industry groups announced today that the EB-5 Regional Center Program will be granted another extension (with no program changes) through September 30, 2018. This decision comes after weeks of negotiations over proposed program changes not reaching a consensus.
Some of the proposed changes that were being negotiated include:
- Increasing the minimum investment amount from $1,000,000 to $1,025,000 for normal investment projects and from $500,000 to $925,000 for projects located in certain high-unemployment or rural areas or for certain infrastructure projects.
- Increasing the job creation requirement from 10 full-time permanent jobs per EB-5 investor to 12 full-time permanent jobs per EB-5 investor in a normal investment project, or decreasing the job creation requirement to 9 full-time permanent jobs per EB-5 investor in a project that meets certain criteria such as being located in a rural area, high unemployment area, or in a closed military base.
- A certain number of EB-5 visas being set-aside/reserved each year for projects that meet certain specifications (i.e. located in a rural or high unemployment area).
- Increased reporting requirements for EB-5 Regional Centers (along with more annual fees to help fund increased integrity measures/programs).
These and other proposed changes are now being postponed until the end of the government’s fiscal year (September 30, 2018). There are already more rumors that another extension will simply follow this extension because of the fall elections this year. David Hirson & Partners, LLP is closely following all EB-5-related legislation and will let you know of more changes to the program when they occur.