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How will the Sept. 30 deadline affect direct EB-5 investors?

I am aware that the EB-5 regional center program may expire on Sept. 30, 2016. What effect would this deadline and/or expiration have on direct EB-5 investors?

Answers

  • Avatar

    Julia Roussinova

    Immigration Attorney
    Answered on

    The direct EB-5 program is permanent and will not be affected even if the regional center pilot program were not extended. However, it is unlikely the pilot program will be completely terminated due to past success and will more likely be extended through continuation measures because of the elections this year.

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    John J Downey

    Immigration Attorney
    Answered on

    I doubt that the regional center program will be allowed to expire. During an election year, the congress will probably issue a continuing resolution to allow continuation into next year. If it happened, then direct investment should not be affected.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    There are no real changes on the horizon for EB-5. The issue of changes with regards to raising the investment amounts was very prominent in 2015, but the only thing that happened was just an extension of the program for three more years. This time around, with election around the corner, nothing appears to be in the pipeline.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    One major possible impact on direct investments for EB-5 processing may be that the minimum investment required may increase from $500,000(TEA)/$1 million. In terms of additional impact on direct investment processing after Sept. 30, 2016, it is all guesswork, including - stricter requirements documenting source of funds, requirement of submitting the business plan in advance of filing the I-526, etc. Best bet is to file before Sept. 30, 2016.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    There should not be an effect on direct EB-5 investor cases. The regional center program is the only portion up for renewal. However, it is possible that any changes made to the regional center program that overlap with direct investors (like investment amounts) may affect both.

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    Charles Foster

    Immigration Attorney
    Answered on

    The Sept. 30 expiration of the EB-5 regional center program should not affect direct EB-5 investors. In any event, it is generally expected that the EB-5 regional center program will be extended.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    It will have no impact. The Sept. 30 sunset only impacts regional center cases. Therefore, if the regional center program is not extended, all pending I-526 cases must meet the 10 full-time direct job creation requirement.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    There is no effect on direct EB-5 investment. The Sept. 30, 2016 deadline is the reauthorization deadline for the regional center based EB-5, which has always been termed "pilot" program with 1-3 year extensions for the past 10+ years. However, direct EB-5 is a permanent EB-5 program established by Congress enacted in the Statute. If Congress does not reauthorize this regional center based program, then no one could invest through the regional centers anymore. However, we do not think it is likely that Congress will remove/cancel this very successful program completely. Also, with the upcoming election and very short working time left for Congress before the end of the Fiscal Year on Sept. 30th, most of us in the EB-5 industry think that the program will continue through the continuing resolution until beyond the election.

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    Xiaosheng Huang

    Immigration Attorney
    Answered on

    Congress may increase the amount of investment from $500,000 to $800,000 after Sept. 30, 2016. So, if you decided to obtain the green card through EB-5, you had better to do it ASAP.

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    Robert Cornish

    Securities Attorney
    Answered on

    It means if you have not invested by Sept. 30, you are likely going to be waiting for the EB-5 legislation to be reinstated, which could take several months if in fact Congress wishes to reauthorize the program. There is the possibility that the program will be extended for one more year, but it is difficult to predict how Congress will act.

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    Matthew T Galati

    Immigration Attorney
    Answered on

    It is possible that as part of a regional center extension, Congress may enact reforms that affect TEA formulas or raise the minimum investment amounts. Many direct investors are treating Sept. 30 with the same urgency as the regional center investors for these reasons.

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