What will become of the EB-5 program next month? Congress has pushed the legislative sunset date to December 8th, but will any actual changes be passed before then? Lawmakers may very well choose not to take action, which could see the EB-5 program added to a Continuing Resolution, to be revisited in 2018.
However, the deferral of EB-5 reform cannot go on forever. Whether this year or next, changes are coming which will fundamentally alter the program and which will require major adjustments on the part of regional centers, NCEs and investors alike.
In a recent article, “Preparing for Potential Changes to the EB-5 Program in Late 2017,” David Hirson, Emily Singer Hurvitz and Warren Oakes outline their predictions for a post-reform EB-5 program and put forward a list of steps that stakeholders may take to prepare. In particular, regional centers and project developers should be asking themselves:
- If Targeted Employment Area (TEA) designations change, how will this affect my investors?
- Do my project investment contracts contain the necessary legal disclosures to handle a change in the EB-5 minimum investment amount?
- If and when new legislation is passed (or new regulations take effect), how should my investors be informed?
The authors argue that now is the time to be asking these questions, and others, and to start preparing for the coming developments. Those that wait until the proposed changes become reality may be left behind.
Read the article: “Preparing for Potential Changes to the EB-5 Program in Late 2017”
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NES Financial, in collaboration with more than 20 EB-5 industry experts, has released the 2017 edition of its EB-5 eBook series, EB-5 Insider: Medallion Partners Share Insights on Industry Trends.
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