What changes will happen to TEA direct investments after Sept. 30?

It is likely that the regional center program will be temporarily reauthorized until December 9. Once substantive changes to the EB-5 program are made (if ever), they likely will apply to both direct and regional center EB-5 cases. Note that while the direct EB-5 program does not expire, the contemplated "reforms" to the EB-5 regional center program will result in a revision of the EB-5 laws (and subsequently, the regulations); this will affect direct EB-5 as well. EB-5 direct is available for both TEA and non-TEA locations now, and that is not likely to change. What may change is how TEAs can be drawn; such changes will apply to both direct and regional center EB-5s.

The direct EB-5 program is permanent and will not expire on September 30. It is also very much likely that the pilot EB-5 program for regional centers will be extended through a continuing resolution until mid-December, given the current election year, and possibly once again until January 2017. However, there is proposed legislation that the investment amounts be increased for both programs.

All options remain open on various issues on EB-5, including but not limited to, the classification of Targeted Employment Areas (TEA). It is not appropriate to second guess the issue. However, everyone expects the attempt to change the existing EB-5 program as we know it will draw a lot of special interest actors who will propose and fight for various changes.

Best bet is that the program will continue as-is through September 30 under a Continuing Resolution from Congress. After the November election there will be a debate and the different proposals will be aired. No one knows precisely what will be produced.

Only the regional center program expires Sept. 30, 2016. Regular direct cases continue as usual. However, we do expect to see new legislation, based mainly on Chairman Goodlatte's H.R. 5992. This bill has retroactive provisions and will impact the entire program, including the minimum investment amounts, and TEA eligibility.

Only the regional center option expires now on September 30. There are bills pending in Congress to increase the limits of both programs though.

Direct EB-5 investment is permanent and will not sunset with the regional center program on Sept. 30, 2016. Even with the regional center program, Congress is expected to continue the program as is by passing the Continuing Resolution until mid-December and we expect that CR to be voted on before September 30. Thus, in reality, nothing will change with the EB-5 program until mid-December at the earliest.

It is not possible to tell you what changes may happen regarding the TEA after September 30. However, there is a high probability that while the EB-5 regional center program will be reauthorized; it will be a short term extension and there will be by the end of the year, if not sometime early next year, significant changes to the EB-5 regional center program including the TEA definition. We do not expect the regional center option to sunset; we expect the program will be reauthorized with a simple short time extension as part of a Continuing Resolution. The direct investment option would still be open in any case for both TEA and non-TEA qualified areas. When there are changes, almost certainly the change will be in the TEA definition and minimum dollar amount, which will affect direct investors as well.

The regional center program is the only thing up for renewal by September 30. Direct EB-5 does not seem like it would be affected by a potential lapse in the regional center program.