The EB5 Regional Center Program is ending on April 28, 2017. There are 3 possibilities that may occur regarding the extension of the program. The program may be extended either through New Regulations, New Legislation, or a Continuing Resolution.
If the New Regulations are not pulled by President Trump, then there is a possibility that New Regulations by the USCIS may come about. However, after comments from the public, the New Regulations may not be finalized before April 28, 2017. Then the EB5 program may be extended by Continuing Resolution till September 30, 2017. Between April and September, New EB5 Regulations may come into force.
If there is New EB5 Legislation during this period between April and September, then a major issue arises.
New Legislation will supersede the New Regulations. Therefore, the gap of time that occurs between New Regulations and the New Legislation would lead to new EB5 Regional Center projects creating a set of parameters regarding investment amounts and TEA analysis that would now face a substantial change if the New Legislation establishes different parameters concerning the TEA analysis and the investment amounts. It is imperative that the EB5 industry strongly conveys this possibility to members of Congress so that they are aware of the confusion that would be created in the EB5 industry.
Furthermore, EB5 Regional Center Projects because of this unpredictability of what could happen may not create new EB5 projects to be marketed to potential EB5 investors.
As a result, the wording of the Continuing Resolution may now become very important. The EB5 industry again should approach Congress and clearly emphasize that a Continuing Resolution would use the current EB5 parameters regarding the TEA analysis and the investment amounts and should remain the same until the end of the Continuing Resolution and any New Regulations or New Legislation would not be retroactive. That is, our opinion that any New Regulations and/or New Legislation should only take effect after the end of the Continuous Resolution.
We at Beshara Professional Association can help you during this period of unpredictability.
Do you agree with that? Share why (or why not!) in the comments!