Over the last several months, Brownstein Hyatt Farber Schreck has been working closely with lawmakers on important legislation updating and refining the EB-5 program. Late last week, as a result of these efforts, Rep. Jared Polis (D-CO), in conjunction with Reps. Joe Garcia (D-FL), Matt Salmon (R-AZ) and Mark Amodei (R-NV), introduced the American Entrepreneurship and Investment Act of 2014. This legislation proposes to amend the Immigrant and Nationality Act to provide significant reforms to the EB-5 program aimed at increasing efficiency, effectiveness and accountability.

Congress created the EB-5 program more than 20 years ago with the intent to stimulate job creation across the country through direct foreign investment. Every investment made through the EB-5 program must create no less than 10 U.S. jobs for at least 2 years. In the last several years, the use of EB-5 project financing has grown dramatically. A recent industry report notes that since FY2005, EB-5 endeavors have resulted in over $6.5 billion in capital formation and over 131,000 new U.S. jobs across 35 states. The recent popularity of the program has, in part, led to slower processing times and bureaucratic inefficiencies at U.S. Citizenship and Immigration Services (USCIS), the agency responsible for the administration of the programs. This legislation is intended to address these concerns.