EB-5 Sunset Provisions Unsettles Investors and Entrepreneurs

by Mintz Levin - Immigration Law

[author: Douglas Hauer

The EB-5 Regional Center Investor Program will sunset on September 30, 2012. Congress is expected to reauthorize the program, but we could be waiting until the end of September before a vote on the issue. This will certainly unsettle potential foreign investors who would like to invest in an EB-5 project now, as well as entrepreneurs seeking certification of new projects by United States Citizenship and Immigration Services (USCIS). USCIS administers the Immigrant Investor Program. Created by Congress in 1990, the EB-5 program was intended to stimulate the U.S. economy through job creation and capital investment by foreign investors. Under a pilot immigration program first enacted in 1992 and regularly reauthorized since and as recently as 2009, certain EB-5 visas also are set aside for investors in Regional Centers designated by USCIS based on proposals for promoting economic growth.

The program has been a success and is clearly beneficial to the United States economy. The EB-5 program facilitates foreign investment in job-creating projects or businesses. A direct result is job creation. The Regional Center Pilot Program provides the tremendous legal benefit of a green card to a foreign investor who places $500,000 into a job-creating project in an area of the country that needs economic development. Under the Pilot Program, Regional Centers have sprouted across the United States to provide an infrastructure of support for EB-5 projects focused on activities ranging from hotel and resort development to constructing clinics and expanding health care and nursing facilities. These projects grow in Targeted Employment Areas (TEA), which are either rural parts of the country or sections of even large cities that are suffering from unemployment rates of at least 150% of the national average. Vibrant EB-5 programs have resulted in job creation in Vermont, New York, California, Washington and other states. This program will vanish if Congress fails to reauthorize it, leaving investors in a legal state of limbo.

EB-5 investments have put Americans back to work in sectors that had been especially hard hit by the recession. Construction and tourism are two examples. Acting now to extend the EB-5 Pilot Program needs to be high on the agenda of our elected legislative representatives. The possibility of Congress not renewing the EB-5 program, however remote, is unsettling enough to cause some investors to think twice about the United States. Recently, I spoke with investors from India and Iran who told me they feel more secure opting for a comparable investment-based immigration program in Canada. If Congress does not act more foreign investors will explore opportunity elsewhere.

We need Congress to act now to ensure continuity with the EB-5 Regional Center Pilot Program. American jobs are at stake. Delaying action sends the wrong message to foreign investors, who often wish to secure permanent residence to enable their children to pursue higher education and employment in the United States without the headaches that come with renewing visas. For every foreign investor who elects to build a life in the United States, we add ten jobs and a wealthy tax payer into our system. Reauthorizing the EB-5 program is a way for Congress to welcome immigrants while building and expanding the economy. And Congress should make the program permanent. This would give investors and entrepreneurs building EB-5 projects the secure legal grounding they need to move forward. I cannot think of a more American approach to aligning values of inclusiveness with our strong tradition of entrepreneurship and a free market.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Mintz Levin - Immigration Law | Attorney Advertising

Written by:

Mintz Levin - Immigration Law

Mintz Levin - Immigration Law on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.