The September 30, 2016, EB-5 Program expiration date is fast approaching, will Congress extend the program, change the program, or let it expire? Why should you apply for EB-5 now?
You should apply for EB-5 now for several reasons. Don't wait. This is true for both EB-5 investors and EB-5 developers look to find EB-5 financing or begin construction on their projects now.
No one thinks that Congress will let the EB-5 Program expire on September 30, but there could be modifications made. Or, even if no modifications are made and Congress extends the EB-5 Program, there are many benefits to getting your application or financing started now.
Apply for EB-5 now to before the rush of people try to get in at the last minute before the expiration date. It will benefit investors greatly if they can apply early and invest with the best regional centers. Developers should also pursue EB-5 financing now so that they too can work with the best regional centers out there. If developers wait too long, the strongest regional centers will already have projects lined up to promote and market.
Apply for EB-5 now to avoid additional visa backlog. While many hope that Congress will increase the amount of EB-5 visas granted yearly, currently there's only 10,000, it may not happen. If it's not increased, the backlog from Mainland China born applicants may grow. Therefore, it's important that investors apply right away to get closer to the front of the line. Developers should also look to establish their EB-5 time as soon as possible, such as regional centers, lenders, and other professionals, in order to avoid the long processing times that occur when a flood of developers seek to find EB-5 financing.
Apply for EB-5 now because no modifications have been made to the Regional Center Program yet. While it's unclear whether or not Congress will change Regional Center Program provisions, it's always a concern. The cost of the investing in the Program could always increase from the minimum of $500,000, to a suggested $800,000. Developers should also look to lock in financing prior to any EB-5 Program modifications.