Recently, the U.S. House Judiciary Committee held a hearing on the U.S. EB-5 immigration program. Authorities in the field of U.S. EB-5 investment immigration gathered to discuss the latest potential reforms to the EB-5 legislation. This indicates that Congress is still striving to pass a new EB-5 bill to secure its reauthorization. Worldway Group now summarizes the core issues discussed at this EB-5 hearing as follows:
I. TEA Reform Receives the Most Attention
Among the many topics, the unscientific method of defining Targeted Employment Areas (TEA) was the primary focus of this hearing. When defining "high unemployment areas," the practice of connecting high-unemployment areas with those that do not meet the criteria allows relatively prosperous areas to qualify as TEAs, thereby obtaining the $500,000 investment threshold only available in TEA regions.
Such a method of division severely violates the original intent of the EB-5 program. "Because the artificial manipulation of TEA boundaries deprives these areas of the potential job opportunities and community improvements that should have been theirs. Once the projects are completed, these areas with concentrated poverty have not seen substantial development."
Representatives unanimously insisted that only by locating projects in truly high-unemployment areas can the program revitalize rural and underdeveloped urban areas in the United States as Congress originally intended.
II. USCIS to Take Action
U.S. Citizenship and Immigration Services (USCIS) has the authority to address various issues within the EB-5 program through administrative regulatory reform. USCIS began working on EB-5 reform as early as 2014; in 2015, when Congress ultimately failed to pass comprehensive EB-5 reform legislation, USCIS restarted its reform process.
Currently, USCIS is planning a series of reform actions, including standardizing TEA definitions, increasing the minimum investment amount, and requiring the submission of project business plans before investors file their applications.
III. Incentivizing Specific Types of Investment
Congress should not only incentivize investment in specific regions but also specific types of investment, such as public infrastructure projects. "We have the ability to create an investment menu to see which investments can truly benefit the United States."
IV. Increasing the EB-5 Investment Amount
Increasing the EB-5 investment amount has become a basic consensus reached at this hearing. Considering inflation since 1990, the real value of the EB-5 investment has depreciated by nearly 50%. Representatives are urging USCIS to immediately raise the minimum investment amount through administrative regulatory reform.
Worldway Group's U.S. immigration experts remind all EB-5 investors: The TEA reform warning has been sounded, and a new EB-5 bill may be introduced at any time. Investors should seize the opportunity and act quickly. Worldway Group has specially launched EB-5 projects—the DLJ Four Seasons Resort project and the 90 Columbus apartment project. These three major projects not only possess numerous advantages such as strong developer strength, sufficient job creation, low investment and repayment risks, and excellent exit mechanisms, but they also comply with the latest standards and requirements regarding the definition and division of TEAs in the latest EB-5 proposals.
At the same time, to celebrate the 10th anniversary of Worldway Group's U.S. investment immigration services in 2016, we are giving away thousands of vouchers worth 10,000 RMB to reward our investors. Investors can use these vouchers to deduct 10,000 RMB from their immigration service fees. For event details, please call our hotline: 400-138-2929
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