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News & Press: Regulatory

Commentary: Congress Moves to Revamp EB-5 | The Class B Option - Globe St

Wednesday, June 10, 2015   (0 Comments)
Posted by: David Soares
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Commentary Brief:  Submitted by David Soares, on Article - Congress Moves to Revamp EB5 - Erika Morphy, Globe St.  - (Read Full Article)

Dear MBA of NY Members:

As you may have heard, last Friday, Senators Charles Grassley and Patrick Leahy have introduced a bi-partisan bill to extend and significantly amend the Immigrant Investor Program, which is currently set to expire on September 30, 2015. The bill would extend the EB-5 regional center program for a period of five years, but changes many key aspects of the program.

The following is a summary of the proposed changes.

Investment Amount
1. The minimum investment amount will increase to $800,000 for investments in a Targeted Employment Area (TEA), and $1.2 million for investments not in a TEA.

2. The minimum investment amount can be amended by regulation, and will automatically adjust in proportion to the Consumer Price Index every five years.

3. The minimum investment in a TEA cannot be less than half, nor more than three-quarters of the non-TEA minimum. Targeted Employment Area

4. The definition of a TEA has been amended to include an area consisting of a single census tract that has 150% of the national average unemployment rate, a closed military base, or a rural area. The definition of a rural area has not changed.

5. For TEAs in a Metropolitan Statistical Area or Combined Statistical Area, at least 50% of a project’s job creation must be within that Metropolitan Statistical Area or Combined Statistical Area to be counted. If the TEA is outside of a Metropolitan Statistical Area or Combined Statistical Area, then at least 50% of the jobs must be created within the county in which the TEA is located. If not, the total number of jobs will be reduced until the 50% threshold is met. Job Creation

 

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