03 Feb Will the EB-5 Regional Center Program Continue in 2015?
Recently, there has been more concern over whether the EB-5 Regional Center program will be renewed in 2015. The program is set to “expire” on September 30, 2015, unless it is renewed for the tenth time!
Additionally, there is concern because of the results of the midterm elections in November, 2014, when the Republicans won the majority in the U.S. Senate, giving the party full control of Congress. Although the parties differ on most of the major issues, many would agree that getting rid of the Regional Center program would be political suicide for any country, including the U.S.
eb-5 business plan
The EB-5 Regional Center “pilot program” was created by Section 610 of Public Law 102-395 in 1992, and has been renewed nine times since its creation. Congress showed its continued commitment to the Regional Center program in 2012, by removing the word “Pilot” from the program on its 20th anniversary and reauthorizing the program for an additional 3 years.[1] Contrary to recent articles about the program’s demise, there is a strong lobby to not only renew it, but to make it permanent. Additionally, there has been discussion regarding changing the investment threshold, to increase the minimums amounts, for some time.
In 2012, Republican Congressman Ed Royce, stated that “the bipartisan support of Bill S.3245 is a testament to Congress’ belief that the EB-5 Regional Center Program is a viable way of stimulating the economy. By ratifying the bill, President Obama is making official what Congress has overwhelmingly voted for, an American job creation vehicle to provide a much needed boost to the American economy.”[2]
In February, 2014, Canada ended its Federal Immigrant Investor program. Since then, Canada’s government has dealt with lawsuits from parties claiming that “… the Canadian immigration authorities had failed to process their applications within the promised time frame.”[3] Canada’s program was very different from that of the United States, but litigation is still a potential backlash for the U.S. if it cancels the Regional Center program. Notably, a variation of the Canadian program (called The Entrepreneur Program) is back on the books for our northern neighbour; however, it likely the new version will only minimally impact on the EB-5 program, if at all.
Furthermore, the EB-5 visa program has helped the U.S. economy recover from the recession during the past seven years by attracting significant foreign investment. These investments have also created much needed jobs in the U.S. One peer-reviewed economic study for fiscal year 2012 revealed that the EB-5 program contributed $3.39 billion to U.S. GDP, created over 42,000 U.S. jobs, and generated over $712 million in federal/state/local taxes. This was more than double the impact of the previous year.[4]
It is clear that the EB-5 Regional Center “pilot” program has been beneficial to the U.S. economy and has received supported from Congress in the recent past. Although Congress’ majority has shifted, there are still proponents of this program in the Republican Party. Therefore, it is likely that this program will continue and perhaps become permanent in the near future.
To find out about professional, comprehensive Business Plans, whether for EB-5, or any other business-related Visa, as well as a variety of customized complementary services designed to specifically address USCIS’s requirements, contact e-Council Inc. at info@ecouncilinc.com.
e-Council Inc.’s website, newsletter and other forms of communication contain general information about legal matters. The information is not legal advice, and should not be treated as such. You must not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider. If you have any specific questions about any legal matter you should consult your attorney or other professional legal services provider.
[1] http://www.uscis.gov/sites/default/files/USCIS/Laws/Memoranda/2013/May/EB-5%20Adjudications%20PM%20%28Approved%20as%20final%205-30-13%29.pdf
[2] http://www.eb5investors.com/blog/obama-signs-the-eb5-regional-center-pilot-program-extension
[3] http://sinosphere.blogs.nytimes.com/2014/06/09/disappointed-immigration-applicants-sue-canada/?_r=1
[4] https://iiusa.org/en/eb-5-regional-center-investment-program/