14 Oct Will The EB-5 Regional Center Pilot Program Become Permanent?
In 1992, Congress took initiatives to enhance the economic impact of the EB-5 program, first introduced in 1990, by authorizing the Regional Center Pilot Program. This program allows “Regional Centers”—which can be publicly-, privately-, or jointly-owned—to pool EB-5 capital from multiple foreign investors. The pooled funds are then invested in government-approved economic development projects within a designated region.
Since its inception, the Regional Center Program has demonstrated remarkable success in attracting investors, growing businesses, and creating jobs—at no cost to taxpayers. One economic study found that during 2012, the EB-5 program contributed $3.39 billion to U.S. GDP and supported over 42,000 U.S. jobs. Today, 95% of all EB-5 capital is raised and invested by Regional Centers.[1]
Despite its success, the Regional Center Pilot Program remains a “pilot” program of temporary nature and requires congressional re-authorization. It has been reauthorized nine times to date, most recently in 2012. The current extension will expire on Sept. 30, 2015.
Proponents of the EB-5 Regional Center Pilot Program hope that it will be permanently extended by Congress so that the initiative can provide a reliable and consistent stream of foreign investments into the U.S. economy. Permanently establishing the Program will boost investor confidence, and, consequently, increase capital inflows and jobs.
The initiative has already received broad-based bipartisan support. The latest extension was passed unanimously by the U.S. Senate and by a vote of 412-3 in the House of Representatives. In addition, 2014 saw the introduction of two separate bipartisan bills in the House seeking to cement the Program.[2] Both bills are currently being reviewed by the House Judiciary Subcommittee on Immigration and Border Security.
With such broad-based support, there is hope that the Regional Centers will be made permanent. But, as with other political issues, many aspects of the Program are the subject of debate. For instance, the EB-5 Regional Center program has suffered from reports of fraud and corruption. In addition, not all Regional Centers are created equal—while some typically produce profits and the requisite number of jobs for its investors, others have directed capital into risky projects and companies that pay little to no return, leaving investors without money OR a green card. Other questions concern whether the US should keep its per-country limits on the number of visas distributed to foreign investors, and whether seasonal or part-time workers (such as construction workers) should count toward the 10-job requirement.
Any bill authorizing the permanent status of the EB-5 Regional Centers will have to address these and other concerns, and to provide solutions that will appeal to both sides of the aisle. Most supporters of the Regional Center Pilot Program (including business tycoons Bill Gates, Warren Buffet, and Sheldon Adelson) believe that reforms are necessary to make it more efficient, effective, accountable, and transparent.
To find out about the EB-5 program in general or Regional Centers specifically, as well as professional, well-researched, articulate, expository narrative Visa Business Plans, whether for EB-5 or any other business-related Visa, as well as a variety of ancillary services, all of which are designed to specifically address USCIS’s concerns, contact http://www.eCouncilInc.com at info@ecouncilinc.com.
[1] https://iiusa.org/en/eb-5-regional-center-investment-program/; http://advocacy.iiusa.org/
[2] H.R.4659 – EB-5 Regional Center Extension Act of 2014 and H.R.4178 – American Entrepreneurship and Investment Act of 2014.