EB-5 Extension Bill
Status of EB-5 Extension Bill â€“ UPDATE #2:
A revised draft bill has just been provided for review and perhaps some final additional comments or revision. Weâ€™ve reviewed the revised bill, and can confirm that broadly speaking, the provisions discussed in our prior status alert are indeed now contained in the written legislation. There has been a delay in timing, with the rewrite not being made available Monday evening, as anticipated, but rather only this morn; also, there are some individual differences or changes in some of the provisions previously discussed:
- The â€œpayforâ€ or additional â€œtemporary EB-5 visa feeâ€ is now added, effective through Sept. 30, 2020, at $10K per petition.
- The visa set-asides are 2,000 reserved for the $1M level of investment, 2,000 for rural area investments, and 2,000 for priority urban investment area investments, with unused visas remaining available for additional years.
- The revised definition of â€œSpecial Investment Zoneâ€ includes the 12 contiguous census tracts.
- The definition of â€œTargeted Employment Areaâ€ does indeed state it includes priority urban investment areas, rural areas, special investment zones, and BRAC (defense base realignment and closure) areas, for those who inquired.
- The cut-off date for the adjusting $100K-tiered minimum investment amount is stated as December 6, 2015.
- On the securities side, weâ€™re relieved to confirm that in all ways that matter, the Staff has accepted the exclusion of unaffiliated job-creating entities (such as third-party developers and similar armsâ€™ length funding recipients) from securities compliance (and resulting liability risk), plus the substitution of seeking to enable in place of guaranteeing securities compliance, plus Blue Sky law (state securities law) clarity.
Otherwise, the balance of the provisions in the text are basically as described previously.
At this time of thanksgiving and holiday gifting, although weâ€™re not yet finished with the bill itâ€™s never too soon to sound:
A note of appreciation to our friends in the EB5 Investment Coalition whoâ€™ve invested so much time and energy in days of negotiations (ongoing!) on bill specifics that have so greatly contributed to the progress achieved this far.
An additional note of appreciation to our trade organization IIUSA, for providing such substantial leadership in pushing for a long-term deal, creatively offering a guiding compromise that helped engender a collegial negotiation process among participants with very disparate goals, remaining active â€œaround the table,â€ and standing ready to review the final text and contribute an ultimate opinion on the bill at that time.
And one other note of appreciation to all of those Unknown Soldiers working behind the scenes, in private, out of the limelight, contributing their own personal efforts in ways great and small that we may never know, to help our industry climb this mountain: â€œUnknown but Not Unappreciated.â€
Further updates as available.
If you have any questions please feel free to contact Homeier & Law, P.C.