Yesterday, Worldway exclusively released and specifically interpreted the scope and validity of the grandfather clause in the latest EB-5 bill, which sparked widespread attention in the industry. Today, Worldway provides an exclusive interpretation and analysis of another major revolution in the latest EB-5 bill: the redefinition and division of Targeted Employment Areas (TEA).
Worldway has learned from the latest EB-5 bill that a TEA defined by high unemployment can only be calculated using a single census tract as the unit; if contiguous tracts are used, the unemployment rate of each tract must be higher than 1.5 times the national average unemployment rate; non-contiguous tracts are not accepted.
This means that many current EB-5 projects located in metropolitan areas and bustling city centers may no longer qualify as TEAs. The result will be that investors who have already made investments but are not covered by the grandfather clause may face legal proceedings for refunds or be required to pay an additional amount up to $1.2 million, while also having to explain the source of funds for the additional payment according to new standards.At the same time, some high-quality projects adjacent to major central areas that meet the requirements of the new EB-5 bill regarding TEA changes may become the new favorites for EB-5 investment immigration, triggering a rush among investors.
Of course, the bill is still under discussion, and the final conclusion may still change. However, wise EB-5 investors should take precautions, be prepared for the worst, and make the most thorough preparations. It is better to believe it is true and act now to make the best plans before the December 11 policy change, quickly investing in high-quality projects that are protected by the grandfather clause and are not affected by the TEA changes.
The projects currently represented by Worldway all meet the standards and latest requirements of the new EB-5 bill regarding the definition and division of TEAs. Among them, the DLJ Four Seasons Hotel and Resort project has a superior geographical location, situated in the world-renowned vacation destination of Puerto Rico, and uses only a single census tract; therefore, the new policy has no impact on the DLJ Four Seasons Hotel and Resort project. The 90 Columbus apartment project is located at 90 Columbus Avenue in Jersey City, which meets the latest requirements of the new EB-5 bill regarding TEA definition and division standards. Both are just across the river from Manhattan, have convenient transportation, and are not only scarce resources with the "Manhattan concept" but will also continue to enjoy the TEA requirements for EB-5 investment immigration.
In addition, the three high-quality projects exclusively represented by Worldway can also be protected by the grandfather clause and continue to enjoy the favorable policy of the final $500,000 investment threshold. These three projects also possess numerous advantages, such as sufficient job creation, strong developers, good exit mechanisms, and low investment and repayment risks. Of course, each project also has its own unique advantages. It is precisely because they possess many concentrated advantages that they have become rare and excellent choices in the EB-5 market to successfully beat the clock before the December 11 U.S. immigration deadline. For details, please call: 400-138-2929