EB-5 Immigrant Visa Program Extension Signed Into Law — Without Any Changes
December 22, 2015 11:30am
EB-5 financing continues for new development projects.
By Jim Butler and the Global Hospitality Group®
Hotel lawyer with great news for developers: the EB-5 immigrant visa financing program has been renewed — approved by Congress and signed by the President. It is being continued without change through September 30, 2016.
A funny thing happened on the way to the 2016 Federal budget approval last week. One of the “riders” to the omnibus appropriations bill was the EB-5 legislation sponsored by Senators Leahy and Grassley. For months preceding the scheduled Congressional action, many stakeholders in the EB-5 industry spent untold hours in negotiating complex provisions to deal with certain concerns regarding the program. These negotiations resulted in multiple drafts of the proposed legislation being exchanged between Congressional staff and industry leaders, with the “final” draft receiving the unanimous approval of the trade organization for regional centers, the Invest in the USA or IIUSA. It was a good compromise on many knotty issues.
Then at the proverbial 11th hour . . . on Wednesday, December 16, the elaborate “final” compromise proposal was jettisoned in favor of a simple extension of the expiration date for the Regional Center program to September 30, 2016, without any other changes to the program.
The EB-5 regional center program is extended without any other changes.
Yes. That is right. After all the discussions and proposals, THE ONLY CHANGE IN THE LAW IS AN EXTENSION OF THE EFFECTIVE DATE FOR THE PROGRAM THROUGH NEXT YEAR.
Nothing was done about any other issues, including the following:
The only change in EB-5 is extension of the expiration date of the program for 9+ months through September 30, 2016. Nothing else!
This is great news for most developers. Here’s what it means.
There are no changes in the law. Business will continue as usual. If you are a developer with a project in the market, you will not have to scramble to make any changes in your private placement memorandum. You will not have to change your minimum investment for foreign investors. Your investors will not have to worry if they have made necessary filing by the effective date of the new law.
If you are just starting to get into the process, the “old rules” continue and you don’t have to worry about figuring out the new ones. . . for now.
We believe these circumstances also suggest that if you are considering financing your development project with EB-5 capital, you should not delay. There are many reasons why you want to get your project in the process as soon as possible:
We have now closed more than $1 billion in EB-5 financings for our clients, and have sourced more than $700 million for them. Please give us a call if you would like to see if we can help you.
Other articles on EB-5 Financing
To access our rich library of articles on EB-5 financing, go to www.HotelLawyer.com, scroll down the right-hand side under LEARN MORE ABOUT and click on “EB-5 Financing.” For your convenience, here are a few popular EB-5 articles that may be of interest:
This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer, signing off. Why don’t you give us a call (or send an email) and let us know what you working on? We would like to see if our experience might help you create value or avoid unnecessary pitfalls. Who’s your hotel lawyer
Tags: jim butler,
global hospitality group
Jim Butler is a founding partner of JMBM, and the founder and chairman of JMBM’s Global Hospitality Group® and Chinese Investment Group™. He is recognized as one of the top hotel lawyers in the world and has authored or co-authored The HMA & Franchise Agreement Handbook, How to Buy a Hotel Handbook, and The Lenders Handbook. Jim has led the Global Hospitality Group® in more than $71 billion of hotel transactional experience, involving more than 3,800 hotel properties located around the globe.
Contact: Jim Butler
Jonathan Bloch is a corporate partner and a senior member of the Global Hospitality Group® at JMBM. He has more than 15 years of experience in venture capital, private equity and alternative investments focused on large institutional investors specializing in operations, sophisticated fund formation issues and legal and regulatory compliance. Jonathan works with developers of hotel and other commercial real estate, as well as energy infrastructure companies, in sourcing, structuring, negotiating, documenting and closing EB-5 loans. He was the founder and Senior Managing Director of a large fund-of-funds firm (over $700 million in investments), which was targeted at venture capital, growth equity, medium-size buyout funds and clean-tech investing.
Contact: Jonathan Bloch
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