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Proposed Changes Causing Uncertainty in EB-5 Community

usa program | EB-5 Extension |
May 18, 2016

The legislation authorizing the Regional Center program for EB-5 business immigration is said to expire on September 30th this year. The proposed legislation changes several aspects of the program, some of which are outlined below.

One proposed change for the EB-5 business immigration program is the increase in the minimum investment amount to US$1.2 million, or to US$800,000 for investments in high unemployment or rural areas in the US.

Restrictions on the use of lawful source of funds for the EB-5 program has also been proposed, where investors will no longer be able to obtain loans from any source other than a bank or a financial lending institution. This proposed change may cause difficulties for many investors as it is common to obtain a loan from their employers or company they own in order to fund their EB-5 investments.

Another proposed change is that gifted funds can only be used for the EB-5 investment if it was gifted by a spouse, child, parent, grandparent, or sibling. This removes the possibility of gifts received from any other family members, including aunts, uncles, and cousins.

Some of the proposed changes for the EB-5 business immigration program bring a positive light to the program though, including shorter processing times and heightened compliance requirements to reduce instances of fraud and abuse for all parties affiliated with the Regional Center.

As the bill will likely continue to undergo changes before becoming law, EB-5 investors are encouraged to file applications for the business immigration program before September 30th 2016, hoping that their files will be reviewed and processed under the current program rules.

For more information on the EB-5 program, please click here.

Feel free to fill out our Free Assessment, and find out if you qualify under any of the business immigration programs offered.
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