We're available 24/7 . Contact us re the EB-5 Regulation Changes
The recent EB-5 "Modernization" or 'New Rule" , which took effect on November 21 of 2019 has been vacated by a court ruling, effectively reverting to the pre November 2021 EB-5 regulations effective July 22, 2021.
The minimum investment for a project located within a qualified Targeted Employment Area (TEA) has decreased to $500,000. Investment in projects that cannot qualify as within a TEA has decreased to $1.0 million. State letters confirming a TEA are not available at this time. Instead our Economist can provide an opinion and verification that your site complies with all published revised guidelines for submission with your project documentation. USCIS must still ultimately adjudicate your TEA.
Negotiations to secure long-term reauthorization and reform to the EB-5 Program are underway with our Industry and EB-5 stakeholders are engaged in meaningful discussions with the legislators to reach consensus and compromise with a new Bill likely before September 30, 2021 for the healthy future of the Program.
Currently the Regional Center program has lapsed pending such a re-authorizationj but the Direct EB-5 program continues uninterrupted, as that's a permanent program that does not require re-authorization. Many projects are filing as Direct now without regional center affiliation, to take advantage of the newly reduced investment, in the meantime.
IF YOU'RE IN DOUBT, CALL US NOW at (941) 346-1295 FOR FURTHER DETAILS.
USCIS will apply legal precedents to take away about half of your calculated construction jobs before you even begin.Here are five ways to get them all back.
1. Don't take on any EB-5 construction projects without a USCIS-designated Regional Center and a qualified Economist on your team.Since you'll likely sub out almost all of your work on a construction project, you'll not have enough jobs to support your investors if you only count your direct actual hires. While that might work for job intensive businesses such as restaurants, it won't work for your development project. As an affiliate of a USCIS approved Regional Center, your project is allowed to utilize approved econometric methodologies to calculate all the jobs your activities generate in the region rather than just counting your own jobs, so you end up with far more eligible jobs to support more EB-5 investors.
2. Major construction projects need to have a construction schedule that exceeds 24 months, otherwise about half of your jobs will be regarded as "part time" and will not count towards your project's job creation. Plan your project around construction activities that will take 24 months or more. Pre-planning, permitting and zoning activities don't count. If your project is clearly much shorter, don't stretch it. See 3. below instead.
3. USCIS regards construction jobs largely as part time, hence ineligible for most EB-5 job creation, unless your project takes more than 24 months. Many projects just don't take that long, but we still want the jobs to support our investors. Careful planning and detailed capital expenditure budgets can help to separate non construction costs from the construction budget so we're left with the smallest possible actual construction budget and will lose the least number of jobs. Instead, much of your capital expenditure can be reallocated into alternate capital categories, which also create jobs, but which are not reduced, no matter how quickly you want to complete your project. UniSource also has an in-house Florida Building Contractor so we'll help you reallocate your costs towards the greatest job creation. You won't be put in the penalty box for having a quick turnaround project.
4. Don't forget that your project's ultimate revenues from sales, rentals, fees. leasing, commissions etc. can also create calculated jobs;often these can double the number of jobs from capital expenditures alone. Prepare detailed profit and loss projections so the Economist can apply the most favorable conditions for job creation. And, if your project is short, you'll start to earn those revenues and calculated jobs much sooner.
5. Use a qualified Economist with a track record of successful and approved EB-5 Economic Impact Analyses. The interpretation of job creation by USCIS is always changing and evolving. Only those familiar with the approved methodologies and with a track record of approved projects can help you create the greatest number of jobs to support your intended investors and ensure your project remains readily approvable.