This month is a busy (and nail-biting) one for the EB-5 world. With the EB-5 Regional Center program set to expire at the end of September, Congress in recess until after Labor Day, and a whole host of issues that need to be addressed once Congress is back in session (Iran nuclear deal, anyone?), there is concern and a lot of speculation about what will happen to the EB-5 program, especially given the recent push to reform it. I wrote about the bill introduced in June by Senators Grassley and Leahy in a recent blog post, and in the months since, another bill has been introduced in the House by Representatives Gutiérrez and Lofgren. Whether these bills will be adopted, amended, or Congress will kick the reform can down the road a little longer and simply reauthorize the program are the unanswered questions that every stakeholder has in mind this month. I will leave speculation about what route Congress will take to those experts in the industry who have their finger on the legislative pulse. In the midst of this uncertainty, though, what is clear is that those with projects that can be filed before September 30th are clamoring to do so.
We here at MasterPlans have definitely seen a surge of new EB-5 projects come our way, many of them on a tight time frame. We’re seeing new projects for direct EB-5 investments as well as large-scale projects sponsored by Regional Centers. Both types of projects require a Matter of Ho compliant business plan, but the development, content, and information relayed in EB-5 direct plans versus EB-5 Regional Center plans is quite different. Earlier this summer, I had the opportunity to submit an article to EB-5 Investors Magazine, one of the leading publications in the industry, about this very topic. The article addresses the differences between EB-5 direct and EB-5 Regional Center business plans, and outlines how each type should be developed to ensure it is Ho compliant. The article was published in the magazine’s July issue, alongside some other very interesting articles about the pending legislation as well as some updates on the impact of the EB-5 program with vignettes of real people whose jobs were created as a result of EB-5 projects. It’s a good read, and I encourage stakeholders to check out the site, magazine, and of course, my article.
For those who are planning on filing before September 30th but still don’t have a Matter of Ho compliant business plan ready, give us a call. Even if you’ve made a business plan draft already but need to have it reviewed to ensure compliance, we can check it over. Whether your case is for an EB-5 direct investment or a bigger project sponsored by a Regional Center, MasterPlans has got you covered.