New Landscape for North American Investment: An Interpretation of New U.S. Immigration Policies
Date: Sunday, March 18, 2018, 13:30
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According to the latest news from Worldway Immigration Group, a draft bill titled the "EB-5 Investment Immigration Visa and Regional Center Program Comprehensive Reform Act" or "EB-5 Reform Act" has been released. It is reported that this draft bill was jointly proposed by three influential political figures in the U.S. Congressional judiciary: Chuck Grassley, Bob Goodlatte, and John Cornyn.
Which amendments in the new draft bill will affect the future project selection of EB-5 investors?
1. Adjustment of investment amounts: $925,000 or $1,025,000 (adjusted every 3 years based on CPI).
Projects located in areas meeting any of the following conditions are eligible for the lower investment amount of $925,000:
I. U.S. territories (e.g., Puerto Rico, U.S. Virgin Islands, Northern Mariana Islands)
II. Closed military bases
III. Small business investment funds
2. Modification of job creation requirements: Each investor is required to create 9 or 12 jobs.
Investors in projects meeting any of the following conditions are eligible for the lower job creation requirement (9 jobs):
I. Rural areas or urban priority investment areas
II. U.S. territories
III. Closed military bases
IV. Small business investment funds
3. Visa set-aside provisions:
I. Rural areas: 1,450 visas reserved annually
II. Urban priority investment areas: 1,450 visas reserved annually
III. Infrastructure projects: 200 visas reserved annually
4. Definition requirements for "Urban Priority Investment Areas":
Must meet 2 of the following 3 conditions:
I. Unemployment rate is 1.5 times the national average unemployment rate
II. Poverty rate reaches 20%
III. Median household income is no higher than 80% of the greater of the state or MSA median household income
Compared to the definition requirements for "Urban Priority Investment Areas" in the previous draft bill proposed by Grassley and Leahy:
Must meet 2 of the following 3 conditions:
I. Unemployment rate is 1.5 times the national average unemployment rate
II. Poverty rate reaches 30%
III. Median household income is no higher than 60% of the greater of the state or MSA median household income
It can be seen that the definition requirements for "Urban Priority Investment Areas" in this newly released draft bill are more lenient.
Special Note: According to the new draft bill, for immigration applications already approved, if an application is submitted within one year of the bill's effective date to obtain authorization for definitions such as "Urban Priority Investment Area," no additional investment amount is required, and the use of the 1,450 priority visa quota is permitted.
Currently, the only EB-5 project in Manhattan with the potential to shorten visa backlogs and offer first-priority repayment—the 9 Orchard Luxury Boutique Hotel—has become one of the most popular projects in the EB-5 market. Once launched, it was highly sought after by investors, sparking a craze for investment immigration to the United States.
Project Overview
The 9 Orchard Luxury Boutique Hotel project is located at 9 Orchard Street in the Lower East Side of Manhattan, New York City. The project involves the renovation of the 105-year-old, 12-story Jarmulowsky Bank building, as well as the construction of a new 6-story building.
The old and new buildings will be integrated and operated as a luxury boutique hotel. The hotel will feature 116 luxury guest rooms, a 600-square-meter bar and lobby, and 930 square meters of event space.
Project Advantages
● The first EB-5 project in Manhattan that meets the "Urban Priority Investment Area" definition of the draft bill, with the potential to shorten visa backlogs
● A rare EB-5 project in the market with first-priority repayment in Manhattan
● High developer equity investment ratio and low debt ratio
● Excellent project refinancing capability
● Sufficient job creation and completion guarantee
● Project has commenced, and some jobs have already been created
● Adheres to industry-leading high compliance standards to ensure highly transparent EB-5 fund supervision and usage
● Refund guarantee provided by a wholly-owned subsidiary of the developer if the investor's I-526 is denied
● Superior location with strong market demand
● Top-tier developer DLJ joins forces with EB-5, and Worldway collaborates again following the Four Seasons Hotel and Resort project, a powerful partnership
