The EB-5 Program is set to expire on December 9th, but an EB-5 resolution is being proposed to continue the EB-5 Program through March 31, 2017.
The EB-5 Program will most likely be extended as a part of a continuing resolution to pass government funding. This EB-5 resolution would be a short-term solution that gives President-Elect Trump's transition team and the House of Representative members more time to address some of the issues concerning the EB-5 Program.
Why would the U.S. extend the EB-5 Program, especially right now when immigration is so controversial? The EB-5 Program will be extended because it allows wealthy foreigners to invest at minimum $500,000 into U.S. projects that create jobs and stimulate the U.S. economy in return for green cards.
What is likely to happen in the coming months is either the EB-5 Program is extended without changes or it is likely that the changes made to the program will increase investor protect by increasing oversight and preventing fraud and misuse of EB-5 funds.
What are some of the issues of the EB-5 Program that the new administration may look at?
- The fraud allegations and misuse of investor funds
- EB-5 regional centers oversight
- Increase in investor capital minimums
- Targeted Employment Areas (TEAs) defining of districts
- Job definitions
- Evidence for lawful sources of investor funding
- An increase in the visa cap
- Better investor exit strategies
- EB-5 Program permanence
In the coming months, it is likely that the EB-5 Program will not only be extended, but it will investors will receive more protections.