The EB-5 Program - What Happens On October 1, 2012?
We first blogged about the EB-5 Program (a/k/a "The Million Dollar Green Card") back in February. Since then, we have noticed that law firms are producing an abundance of EB-5 primers and articles. A quick search of Lexology shows that there have been 6 new articles in just the first 15 days of August.
After reviewing some, there seems to be one central fact that doesn't get discussed. We included only a passing reference in our blog post.
The program sunsets in September 30, 2012.
We don't mention this with the intent of discouraging a hospitality developer from looking into the EB-5 program. It has always been subject to a sunset date since its inception in 1993. As is obvious, that sunset has been continually extended, the last time by President Obama in 2009.
However, we do think the current sunset date is relevant from a planning perspective. Luckily, the program has a champion in Senator Leahy (D-VT). He authored SB 642 with the intent of eliminating the sunset provision and making the program permanent. In introducing the bill, Sen. Leahy made a good case as to why the sunset provision should be eliminated:
Mr. President, today I am introducing the Creating American Jobs Through Foreign Capital Investment Act. This bill does one simple thing: It makes the EB-5 regional center program permanent. The EB-5 Regional Center Program has been highly successful since its inception in 1992, but it has always lacked the security of assured continuity. Extending the program by a few years at a time hampers the growth of the program and creates a disincentive for immigrant investors to bring their capital investments to the United States.