HR 601 Extends EB-5 Program

On Friday, September 8th, President Donald Trump signed Act H.R. 601 into law, thus granting an extension to the EB-5 Visa Pilot Program which has been in limbo since 2015. Sponsored by Representative Nita Lowey, H.R. 601 provides that appropriations will continue to be provided for the EB-5 program until December 5, 2017 or until Congress enacts a new law for the program

    Due to more pressing issues, the EB-5 industry does not anticipate Congress making a long term decision concerning the program before the December deadline. Changes hotly discussed as part of the program reform include a new investment requirement that could range from $800,000 to $1,350,000 in TEA areas and, at it’s highest amount, $1.8 million in non Target Employment Areas.

    Until Congress passes a new law for the program, nothing will change with the current EB-5 Visa requirements, which include:

    • Investments made through the program must be “at risk”, with no guaranteed financial return
    • If an investor’s application is approved, EB-5 investors will receive a conditional visa that is valid for two years. A permanent visa will not be granted until an investor demonstrates that the legally required economic benefits from their investments have been met.
    • EB-5 Investors must prove that their source of funds to be invested is a legal one, along with other terms and conditions.