EB-5 Program Status in November 2021
Today’s update on the lapsed EB-5 Program status focuses on the anticipated renewal outcomes and the silver lining in the Bill restructuring.
4 months have passed since the Senate refused to extend the Regional Center EB-5 immigrant investor program.
It appears that Senate is set to put the EB-5 legislative vehicle into motion on December 3rd during the FY2022 appropriations act unless delayed again.
Let’s look at the scenario as it stands in November 2021.
EB-5 Program status renewal delays stemming from:
1 Separation from previous omnibus re-authorization in Dec 2020, and no passing of EB-5 program as a stand-alone bill on June 30th.
2 Disagreements in June on the direction of the new bill, primarily between pro-reform lobbyists and lowered investment amount stakeholders.
> https://baicapital.com/the-eb-5-program-deadline-on-june-30th-2021/
https://baicapital.com/the-eb-5-program-deadline-on-june-30th-2021/
3 Building consensus among all stakeholders. The behind the scenes discussions over the last 4 months have led to a confidential proposal submitted to Congress that bridges the gap between the various factions.
Legislative vehicle renewal | Anticipated outcomes:
1 New bill proposed by Senator Graham, based off a reformed Leahy Proposal. Bill 2778 or a ratified version could form the basis of the new EB-5 Program.
2 Approval of AIIA’s grandfathering bill, the Foreign Investor Fairness Protection Act (FIFPA). The FIFPA seeks to grandfather in all existing EB-5 applications, as per the EB-5 legislation that was in place at the time of their filing, regardless of the current state of authorization of the program.
3 The 2022 DHS (Department of Homeland Security) Appropriations Bill is the most likely vehicle to carry a potential EB-5 reform bill or FIFPA.
Positives of the 2021 EB-5 lapse setback:
1 Possible upcoming permanent status compared to yearly re-authorization/ renewal. Dependent on how and where the Program is re-authorized or renewed, the Regional Center EB-5 Program could be inked as a permanent stand-alone Bill, like the direct investment branch.
2 Better bill and legislation representing more stakeholders. The ratified bill proposal most likely contains a lowered amount in between the original USD 500,000 investment amount and the almost doubled USD 900,000 amount that replaced it in 2019, which was struck back on June 23 of this year.
Today’s Takeaways
Unfortunately, the lapse in the EB-5 Program continues into November 2021. Parties most affected are businesses/ regional centers that deal exclusively with EB-5 investments; foreign investors who seek to begin the process but cannot; and most, unfortunately, aliens and their families who have already commenced the process but are now stalled midway.
As we mentioned above, one of the key points put forth by AIIA and the FIFPA is that whatever may happen to the EB-5 Program going forward, that in process applicants may be grandfathered to prevent their capital and time investment from being wasted.
If you are an alien mid-process in the EB-5 Program, follow these links
>>> https://www.uscis.gov/working-in-the-united-states/permanent-workers/eb-5-immigrant-investor-program
>>> https://blog.lucidtext.com/2021/10/05/uscis-website-alert-10-4-update/
If you are a foreigner looking to immigrate through investment in US real estate, please contact us directly.
BAI Capital has structured its developments to offer investors the opportunity to join as preferred equity partners in the fund- regardless of whether one is looking to immigrate. Also, we have created the possibility of leveraging a present time pure equity capital investment into the EB-5 Program, when it resumes.
BAI can also direct you to other options to invest in – as a direct property owner in prime Florida locations. Take advantage of the low mortgage rates that should rise shortly.
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*** Photo by Chris Grafton on Unsplash ***
