S.2415, also referred to as the “EB-5 Integrity Act of 2015,” is a bipartisan bill introduced by Senators Flake (R-AZ), Cornyn (R-TX) and Schumer (D-NY). The goal was to introduce certain integrity measures into the EB-5 program, which has been given an extension through September 30, 2016.
The bill did add most of the measures for oversight and integrity that were originally introduced in S.1501 without some of the provisions that were more controversial, such as minimum investment amounts and defining targeted employment areas. The following are among the provisions that are included:
- Modification of job creation definitions.
- Broader authority granted to DHS to terminate regional centers.
- Regional centers must receive annual certifications to demonstrate security law compliance.
- Regional centers must provide annual statements that meet specified reporting standards.
- Foreign governments or government entities cannot own, or financially support, regional centers.
- Certain individuals are required to submit to background checks.
- Inspector General’s Office and GAO now require new reports.
- Transparency is required in all agency actions, including all communications.
If you’re interested in taking advantage of the benefits the EB-5 program represents, it’s a good idea to invest in an EB-5 attorney who has specific experience dealing with EB-5 cases and a firm understanding of the new provisions under S.2415 and what they mean for the EB-5 program.
Additionally, it is up to you to take proactive measures to ensure that your EB-5 participation plans aren’t derailed by new laws in the works. The next ten months could prove pivotal and failing to take action now could exclude you from this opportunity. Read the bills. Understand that all changes, for better or worse, will impact your business.
Get involved with lobbying groups and trade associations that share your stance on EB-5. Finally, meet with Senators and Congressman that represent your region to make sure your voice is heard. Show them the benefits these programs bring to their regions and give them a reason to support the program.
Work with attorneys that are on your side, such as an EB-5 attorney from David Hirson & Partners, LLP. Your attorney will be your lifeline and can help you understand and comply with the EB-5 laws today and as changes are made.