The EB-5 Regional Center program has been approved to continue until September 30th, 2019 without any changes or reauthorization. After September, an extension will most likely be granted as these short extensions have been continuously passed the previous years. Many are pushing to make the EB-5 Regional center a permanent program, and under the Trump administration, this may occur. Jared Kushner, President Trump’s son-in-law, and his family have used the Eb-5 Regional Center program to fund many of their real estate projects in the past.
Announcements have been made stating that EB-5 regulation have come to the finals stages before becoming law. The final reforms are not set, but we know some changes that are to be included. These changes were highly criticized, so keep in mind that these proposed reforms could change.
- An increase in minimum investment amount Targeted Employment areas (TEA) would increase from $500,000 to $1,350,000. Non-TEA investment minimums would change from $1,000,000 to $1,800,000.
- States would no longer have the ability to Designate which areas are considered TEA. This designation would be determined by the federal Government. States would no longer be able promote economic growth in areas of their choosing.
China and Vietnam have ventured into EB-5 Retrogression and other countries are predicted to be going that route as the number of EB-5 applicants increase. Wait times for applicants are continuously increasing in China and Vietnam. South Korea, Taiwan and Brazil are projected to have less of a waiting period to begin the EB-5 process in the upcoming months.
Suggested EB-5 Program Reforms
Many insiders in the EB-5 industry are requesting a change in the visa gap. 10,000 visas are given out each year accounting for investors, spouses and unmarried children. This means each investor is given around three or four of these visas for their spouse and children. This reduces the number of Visas’ available for investors, causing a backlog. A change to the Visa Cap to only count investors would solve this current issue.
Why Invest Now?
There have not been any changes set and countries other than China and Vietnam have not faced retrogression, so this is the perfect time to lock in a spot in line to begin the EB-5 process. Funds can come from income, asset sales, gifts and can even come from a loan. The EB-5 Program grants investors and their immediate family a way to begin a life anywhere in the U.S. After five years, the investor, their husband or wife and their unmarried children (under the age of 21) will be eligible to be U.S citizens.