The EB-5 visa program was introduced by the U.S. Congress in 1990. At the time, investors could make a direct investment into a business and create 10 full-time American jobs to qualify for immigration benefits. In 1992, the U.S. Congress introduced “Regional Center Pilot Program” to enable investors to pool an investment in a fund and make an investment in a project to take advantage of jobs created by the economic impact of the project.
The Regional Center Pilot Program was set to expire in 2015. In 2015, the Regional Center program was linked with the stimulus bill of the United States and enjoyed automatic reauthorization upon the passage of the stimulus bill. The last re-authorization of the bill was till June 30, 2021. In March 2021, the U.S. Congress detached the Regional Center program from the stimulus bill and introduced it as an independent bill titled: EB–5 Reform and Integrity Act of 2021. The bill was introduced “to reauthorize the EB–5 Regional Center Program in order to prevent fraud and to promote and reform foreign capital investment and job creation in American communities.” The U.S. Congress failed to pass the bill by the end of June 2021 resulting in lapse of the program. The bill is still pending a vote and may come up for a vote in February of 2022.
Impact on EB-5 Investors:
- The lapse of the Regional Center Pilot Program does not affect direct EB-5 investors.
- The U.S. Citizenship and Immigration Services (USCIS) is not accepting new applications under the Regional Center Program.
- The Department of Homeland Security (DHS) is not issuing new immigrant visas or adjudicating applications for adjustment of status for existing EB-5 investors who received an approval of their application for a conditional green card or I-526 petition resulting from an investment in a regional center EB-5 Project.
- USCIS continues to accept and adjudicate for I-829, petition by investor to remove conditions on permanent resident status.
We believe that the Regional Center Program will be renewed in early 2022. EB-5 not only attracts foreign direct investment from high-net-worth individuals (HNIs) from all over the world, but also creates American jobs. According to EB-5 industry trade organization, The Invest in the USA (IIUSA), “Since its inception, the EB-5 Program has drawn in more than $41 billion in capital investment from across the globe to support American businesses and created at least 820,000 job opportunities for U.S. workers.”
Disclaimer
This article is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. It is not intended to be, and should not be construed as, investment advice. Prospective investors should consult with their own financial, legal, and tax advisors before making any investment decision.
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