After months of silence,
the recent working group composed of leaders from both houses has finally proposed a new EB-5 draft. For three consecutive days, Worldway has provided timely analysis and interpretation of the significant reforms involved in this new EB-5 draft. Today, Worldway will further analyze the mandatory pre-approval process for EB-5, which may be another "major earthquake" in the EB-5 industry following the changes to the grandfathering rule and the significant changes to TEA.
Worldway has learned that the latest EB-5 proposal stipulates that all EB-5 projects, regardless of whether they are grandfathered, must obtain sample pre-approval from the U.S. Citizenship and Immigration Services (USCIS) before submitting investors' I-526 applications. If there are no significant changes, fraud, or misconduct in the project, and if the project has sample pre-approval, the USCIS must comply and approve the I-526 application of the project's investors.
This means that any project that has not obtained sample pre-approval must first obtain it after the new law takes effect on December 11, before the investors' I-526 applications can be processed. This will lead to investors who have invested in projects without pre-approval facing either withdrawal of their applications or application freezes after the new policy takes effect, and they will have to wait for the project to obtain sample pre-approval under the new standards before resubmitting their applications or supplementing their documents according to the new standards to restart their applications.
The more serious consequence may be that the mandatory project pre-approval process will prolong the already lengthy EB-5 adjudication process, especially in the practical operation of EB-5 projects, which may lead to many projects being unable to recruit sufficient EB-5 funds in a timely manner, thus delaying project launches or suffering significant setbacks.
Of course, the proposal is still under discussion, and the final conclusion may still change, but wise EB-5 investors should prepare for the worst, taking precautions and making the most thorough preparations. It is advisable to trust the truth and make the worst-case scenario plans before the changes on December 11, quickly investing in high-quality projects that have already obtained USCIS sample approval for I-526 before June 1, 2015, which are protected by the grandfathering rule, undoubtedly the best choice to cope with the changes on December 11.
In the context of the impending changes in EB-5 policies, the two major projects exclusively represented by Worldway—DLJ Four Seasons Hotel Resort Project and Columbus 90 Apartment Project—are both high-quality projects that have successfully obtained USCIS sample approval for I-526. Among them, the DLJ Four Seasons Hotel Resort Project successfully obtained USCIS sample approval for I-526 in March 2015 and received formal approval in October; the Columbus 90 Apartment Project successfully obtained USCIS sample approval for I-526 in May 2015;
In other words, these two high-quality projects exclusively represented by Worldway comply with the strict mandatory pre-approval process requirements of this new EB-5 proposal and are high-quality projects that have passed the "security check" and "standard compliance," thus will not be affected by the new EB-5 proposal and various uncertainties in future policy changes.
In addition, these two projects are also protected by the grandfathering rule and are not affected by the TEA changes, allowing them to continue to enjoy the favorable policy of the last $500,000. Both projects also have 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, and it is precisely because they possess many concentrated advantages that they have become rare choices in the EB-5 market for successfully catching the last train of U.S. immigration before December 11. For more details, please call: 400-138-2929