On July 1, 2016, the latest EB-5 reform proposal introduced by U.S. Congressman Grassley was freshly released. In this draft, known as the "strictest EB-5 draft in history," what content is closely related to EB-5 investors? What specific provisions will significantly impact the current or future investment behaviors of investors? Worldway's U.S. immigration experts will provide detailed answers as follows:
1. Price increase is a certainty and can be adjusted at any time based on inflation
1. For TEA areas, 5,000 visas are reserved; (setting aside the biggest controversy between urban and rural assistance)
2. The determination of TEA is valid for 2 years, and if renewed, it continues for another 2 years; (more reasonable)
3. Minimum investment amount: TEA: $800,000, non-TEA: $1,200,000; (price increase)
4. Adjustment mechanism:
4.1 The Secretary of the Department of Homeland Security (DHS) and the Secretary of Labor can discuss and adjust prices at any time;
4.2 If there is no adjustment for 5 years, it will be automatically adjusted every 5 years according to the price index;
2. Application requirements may be comprehensively raised
1. The indirect employment that can be used for EB-5 is limited to a maximum of 90%; (this was highly controversial last year and is still ongoing; large infrastructure projects may be severely affected)
2. Employment created by non-EB-5 funds cannot exceed 30% of the employment available to EB-5 investors; (new restriction clause)
3. Tenant employment is eliminated; (not much controversy)
4. Source of funds
4.1 Requires 7 years of tax returns (the same as last year's proposal, but personally, there was no specific purpose or effect provided)
4.2 For overseas remittances, proof of the remitter's identity is required;
4.3 Gifts can only be from close relatives;
4.4 Loans can only come from U.S. financial regulatory recognized, reputable banks or lending institutions;
5. After obtaining a conditional green card, the I-829 application can be submitted within 90 days before the 2nd anniversary; (same as now)
6. As long as it has been 2 years since the approval of the 526, even if the priority date has not arrived, and the individual has not entered the U.S., the I-829 can be submitted directly, and later upon entry or filing for 485, the formal green card can be obtained directly; (the biggest benefit, alleviating the priority date issue)
3. EB-5 is extended for 5 years, and the policy is relatively stable: The EB-5 Regional Center Program has been extended for 5 years, until September 30, 2020;
Worldway's Interpretation: How Does the New EB-5 Draft Affect Investors?
The biggest benefit of the new EB-5 draft is that it effectively alleviates the current biggest obstacle of EB-5—the priority date issue. However, overall, the price increase of EB-5 is already inevitable, with the minimum investment amount rising from $500,000 to $800,000, which means that U.S. investment immigration thresholds are comprehensively raised. This tightening is reflected not only in price but also in time, explanations of source of funds, employment calculations, review mechanisms, regulatory intensity, and penalty mechanisms. Overall, the standards are higher, stricter, and the risks are greater.
From a broader perspective, currently, the likelihood of the EB-5 bill being successfully extended is relatively high, but the price increase is rapidly approaching, especially as the new bill may be introduced at any time, increasing the corresponding risk of variability. Therefore, investors should not worry about the policy shutdown issue, but should expedite their applications and investments before the price increase and the strictest bill is introduced.
Worldway's Four High-Quality Risk-Resistant Projects Help You Adapt to Changes with Stability
Although the draft has not yet been finalized, it cannot be ruled out that it will be included in the specific content of the September 30 policy changes. Smart EB-5 investors should prepare thoroughly in advance, choosing projects according to the most stringent high standards currently discussed in the industry, and quickly invest in high-quality projects protected by the grandfathering rule, which can undoubtedly maximize the avoidance of the impact of future policy uncertainties, thus adapting to changes with stability before the price increase bill arrives.
Worldway, as a leading institution in investment immigration, has ten years of experience in U.S. investment immigration, with an excellent project and documentation team. Worldway's four high-quality EB-5 risk-resistant projects are a strong gift, ensuring your family's U.S. green card. Moreover, there are already approved projects that allow you to immigrate to the U.S. ahead of others. More importantly, Worldway Immigration Group is one of the few professional immigration institutions in the EB-5 market that has proactively submitted applications according to the latest standards of the new EB-5 proposal. Call now: 400-138-2929
