[U.S. Immigration Month Policy Interpretation] Authoritative Lawyer Predicts the Future of the EB-5 Industry

Join us in June for the inaugural U.S. Immigration Month hosted by Worldway. The Worldway Immigration Group will hold a grand event across seven cities in China for the first U.S. Immigration Month, presenting the latest comprehensive information on U.S. investment immigration, trend analysis, policy interpretation, U.S. education, U.S. real estate, U.S. finance and taxation, U.S. financial investment, and new life in the U.S. This issue continues with a major policy interpretation for U.S. Immigration Month: Authoritative lawyers predict the future of the EB-5 industry after the September 30 deadline.

2015 will undoubtedly become a significant turning point for the EB-5 industry, as everyone anticipates the direction of the EB-5 industry after September 30. Following the calm extensions of the previous two bills, this time there will certainly be adjustments. For EB-5, whether it is price increases, extensions, or TEA certification, it will face considerable reforms. Recently, renowned U.S. investment immigration lawyer Klasko released the latest predictions regarding the EB-5 bill, and the core viewpoints are translated as follows:

The EB-5 world is undergoing changes. The next few months will be crucial. This article will mainly discuss some changes that have already occurred and those that are about to happen. These changes will be divided into the following aspects.

Regarding the Extension of the EB-5 Regional Center Program

The Regional Center Program is set to expire on September 30. This is not news, as it has been extended since 2003, usually passing with overwhelming support. Just a few weeks ago, there was no reason to worry that this year would be any different. However, a few weeks ago, news from Washington created significant uncertainty regarding the extension of the bill.

The new chairman of the Senate Judiciary Committee, Senator Charles Grassley from Iowa, has never been fond of EB-5 and has made it clear that he wants to reform EB-5 as a condition for the program's extension. The former chairman of the Senate Judiciary Committee, Senator Patrick Leahy from Vermont, a strong supporter of EB-5, also indicated that he would soon introduce a new EB-5 bill, which appears to have at least some aspects advocated by Senator Grassley. Secretary of Homeland Security Jeh Johnson sent a letter to Senators Grassley and Leahy, much of which aligns with Senator Grassley's initiatives.

The following outcomes may occur:

a. The EB-5 program cannot be extended. This possibility is low.

b. The Regional Center Program is briefly extended (for 6 months or less), allowing Congress time to discuss and pass modifications to the EB-5 bill. This is very likely to happen.

c. Congress agrees to modify the EB-5 bill before September 30 and extends the modified EB-5 program for three years. Currently, many believe this is the most likely scenario; however, as we approach the September deadline, the aforementioned scenario b becomes more likely.

d. The EB-5 program is extended without changes. Although not particularly realistic, it is still possible, especially if the September 30 deadline approaches or passes without reaching a consensus on changes to the EB-5 program.

e. Congress makes the EB-5 program permanent. From the current situation, this is viewed as the highest expectation in the short term.

Potential Changes to the Regional Center Program

Among the many potential legislative changes, two points will have a significant impact.

First, increasing the minimum investment amount. It is almost certain that once the EB-5 program changes, it will include provisions to increase the minimum investment amount. It is likely that the amount for TEA (Targeted Employment Area) will rise to approximately $900,000, while other areas will increase to $1.2 million. Adjustments may be made based on ongoing inflation. Considering that the EB-5 program's price has not been adjusted since 1990, many believe that a price increase is indisputable.

For Chinese investors, the impact is not just the need to invest more renminbi. The additional requirement to prove 80% of the investment amount may pose a challenge for many investors. Perhaps more significantly, to comply with China's foreign exchange control requirements, the traditional method of remitting $50,000 each from 10 friends or family members will have to increase to 16 individuals. Investors will need more family members or friends to assist with the process. To avoid such outcomes, many investors may choose to invest before the bill changes.

Second, the determination of TEA is highly controversial. Other legislative changes may include granting the U.S. Citizenship and Immigration Services greater authority to revoke regional center designations based on criminal or security issues and to regulate regional center officials.

As the various uncertainties surrounding the extension of the Regional Center Program become the main source of fear, the following changes will also be key factors in the EB-5 market.

Chinese EB-5 Visa Backlogs

Since the backlog date of May 1, the impact has been uncertain. Although the longer waiting time for Chinese investors to immigrate to the U.S. will affect some, generally speaking, a high proportion of investors will continue to invest. At the same time, in a sense, investors also recognize that the waiting time for quota backlogs will become longer over time, and investing now will take less time than waiting to invest one or two years later. It is likely that the impact of uncertainty in the current market is indirect, and the number of investors submitting I-526 applications this year will be less than previously expected. If there is a need for strong advocacy for the EB-5 program, whether to the media or Congress, it is now!My intuition tells me that the future of the EB-5 program will be most critical in the next six months.

According to Worldway's analysis and predictions: The wolf of EB-5 price increases is approaching. The specific timing of the EB-5 price increase is likely to occur at the September 30 deadline this year. Coupled with U.S. inflation, it is estimated that the minimum investment amount for EB-5 may be around $900,000. Furthermore, the increase in investment amount means greater capital input, increased investment risks, greater difficulty in explaining the source of funds, and increased risk of application rejection. Worldway reminds investors: Investing early before the price increase on September 30 may be the wisest choice for Chinese EB-5 investors. We are currently in a golden period to seize the last chance for U.S. investment immigration. Against this backdrop, the Worldway Group will passionately present three pre-approved premium projects during the inaugural U.S. Immigration Month event, helping investors better understand U.S. investment immigration policies and effectively respond to the three major crises of U.S. investment immigration. For more information, please call: 400-138-2929.