Friday, June 5, 2015

New EB-5 Legislation introduced by Senator Grassley and Senator Leahy

The EB-5 Regional Center Program is set to expire at the end of September of 2015. We are happy to announce there is new bipartisan EB-5 legislation in the US Senate called the American Job Creation and Investment Promotion Reform Act. The legislation introduced by Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Senate Judiciary Committee Ranking Member Patrick Leahy (D-Vt.) would reauthorize the EB-5 Program for five years and help reform the program to add transparency and help protect national security. The new legislation would raise the minimum investment to $800,000 for TEAs and $1.2 million for non-TEAs, take away the derivatives of EB-5 investors thus increasing visas for the program, require Department of Homeland Security (DHS) to review projects before investors submit applications, allow DHS to conduct audits and site visits to EB-5 projects, amend the current Target Employment Areas, increase disclosures to investors and require more oversight of projects for securities compliance. This is a big step in the political process to get a bill introduced into the Senate with bipartisan support. The EB-5 market in China would be impacted by the new legislation and take additional time for the market to adjust. Projects in the market now could be grandfathered in, making their projects more attractive at the $500,000 level. The additional securities compliance, on-site reviews by DHS and pre-approval of business plans would add more transparency for EB-5 investors. We look forward to working with Congress to help reform the EB-5 program and this is the first step in the right direction.   

Join us in Chicago on July 16 at the EB-5 China Market Roundtable to learn how the EB-5 Investors' market will be impacted!

No comments: