September 30 deadline is approaching!
Did you know?
Did you know that we have less than two months left for the September 30, 2017 deadline? What is expected to happen if and when the current EB-5 law changes? Let us quickly analyze!
- The Targeted Employment Area (TEA) definition will be revised. In order to qualify to invest at the discounted TEA level, investors will need to find projects in truly rural areas. This differs from the current law, which permits projects in urban settings that have high unemployment areas within commuting distance. Additionally, the authority to designate an area to be TEA might be taken away from the states and given to the federal government. If this change is implemented, it is widely believed that foreign investors’ demand on the program will be seriously diminished.
- The minimum investment amount is almost definite to be revised upward. For TEA’s, the minimum investment could be raised to anywhere between $ 800,000 and $ 1.35 million. For non-TEA projects, the minimum required investment could become $ 1.8 million. Again, such a drastic increase could make the program quite unpopular, thereby slowing down investments. EB-5 would become relatively unattractive when compared to other similar immigration programs in the rest of the Western world.
- Projects will be monitored more closely. This actually would be good for investors as potential fraud will be able to be identified in early stages, thereby protecting the rights of investors.
Needless to say, the time to act is now! Clients are spending much more time to prove their source of funds than they anticipated. Therefore, the quicker you start the application process, the better chance you will have to catch the September 30 deadline!
Remember, those who cannot sell real estate now to finance the EB-5 investment can use assets as collateral in order to qualify for a loan in the form of a mortgage from a bank. When the market improves, and selling real estate becomes more viable, investors can then pay-off the debt. Those who are lucky enough to have parents, relatives, or friends who could gift the funds, can use those funds for the investment. Whichever of the three major methods (sale, loan, or gift) that one chooses, we strongly encourage deciding on one now and making the investment. Do not procrastinate! You will be happy you acted in time!!!
Posted by americaeb5visa on July 31, 2017