08 December 2015
Editor’s note: The EB-5 program has been renewed! The article below describes the changes to the EB-5 Immigrant Investor Visa program that were ALMOST enacted in December 2015. At the eleventh hour, Congress completely shelved all the proposals discussed below, and instead decided to continue the program, without any change, through September 15, 2016.
For the current status of the EB-5 financing program, see “EB-5 Immigrant Visa program extension signed into law — without any changes. EB-5 financing continues for new development projects.“
Hotel Lawyer preview of the new EB-5 financing rules.
Although minor tweaks and adjustments continue to be made to legislation in the final hours before Congress votes, it looks like we have a pretty good idea of what the new rules will be for EB-5 financing. Top takeaways for developers are:
- The EB-5 regional center program will be extended for 5 years
- Developers will be able to raise 60% more EB-5 capital on the same number of jobs
- Minimum investment will be raised to $800,000 (not expected to deter investors)
- TEAs will be forced into a “modified California model” of not more than 12 contiguous tracts
- NOW is a good time to get started on EB-5 financing before the New Year rush
- There will be much greater scrutiny and compliance required of those in the capital raising process, and there may be a trickle-down effect on developers (unless they want to form and use their own regional center)
Read on for more details. CONTINUE READING →