With the new regulations for the EB-5 Program scheduled to go into effect on November 21, 2019, not much attention has been paid to the status of the EB-5 Regional Center Program, which will sunset on September 30 — again. Perhaps we’ve become numb to this potential threat, after more than 15 short-term extensions have been granted since September 2015?
The Department of Homeland Security’s (“DHS”) final rules, known as EB-5 Immigrant Investor Program Modernization (the “Regulations”), have dominated recent EB-5 coverage, including our blog on three EB-5 takeaways you should know about. However, without action from Congress, the Regional Center Program will sunset leaving the Regulations to apply only to direct EB-5 investment opportunities, which account for a very small number of the offerings in the market today. Without another extension, the offerings designed to utilize the Regional Center Program would cease to qualify and the industry as we know it would all but disappear.
Thankfully, Continuing Resolution (H.R. 4378) has been passed by both the House and the Senate and is currently with the President to sign and make it official. Once signed, H.R. 4378 would fund the government and extend certain immigration programs, including the Regional Center Program, through November 21, 2019. In fact, the Regional Center Program is now scheduled to sunset on the effective date of the Regulations. Unfortunately, this means the uncertainty about the Regional Center Program will continue for at least 6 more weeks. Will it get another short-term extension and fight to survive under the Regulations? Or will it fade away into the sunset?
There are big changes coming in the EB-5 industry (or little changes, if we expect another series of short-term extensions to the Regional Center Program), whether by regulation, legislation, or both. In case you missed our last webinar covering “How the 2019 EB-5 Regulatory Update Will Impact You” this past August, check out the recording here.
Also, on October 2, 2019, don’t miss our free webinar entitled “Are You Ready for EB-5 3.0 — A New Era?” During this webinar, NES Financial’s panel of EB-5 experts will walk you through what to expect in EB-5 post November 21, 2019. What will happen to processing times? How will that impact the structure of the offerings and the availability of capital? And what choices will be available to issuers who have projects in flight?
If you’re a current or prospective investor, developer, entrepreneur, attorney, business consultant, service provider or issuer trying to figure out how to best navigate the EB-5 market in the coming months, register for the free webinar today!